Estate Return 1041, do I need to include decedent's IRA when beneficiary is not the estate?

Forum|Forum|4 years ago
January 3, 2022
2 replies
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I am an executor for a family member. The deceased had a traditional IRA and named a non-profit entity as the sole beneficiary. The non-profit entity has been contacted and instructed to contact the IRA custodian (e.g. Fidelity) to receive its distribution.

Does the Estate Return 1041 need to include this traditional IRA as gross income? My gut is that since there is a beneficiary, that this removes the IRA from the Estate and therefore it does not need to be included in the 1041 nor would I need to generate any 1041 K1 reporting for this non-profit beneficiary. However, I cannot find guidance specific to this situation.

I called the custodian and they were less than helpful about what tax reporting would be generated.

Thank you

TurboTax Business Windows

Carl

Level 11

Does the Estate Return 1041 need to include this traditional IRA as gross income?

No, not at all. Since a beneficiary was designated on the IRA, it's passed outside of any will or estate. The only time I"m aware of (there may be more) that an IRA is included in the estate, is if the estate is the named beneficiary on the IRA account.