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Level 2

Question

How do I report a 1099-R for an inherited IRA account that was moved from one broker to another?

Forum|Forum|7 years ago
June 5, 2019
3 replies
12 views

No text available

TurboTax Premier Online

Level 15

Are you the surviving spouse of the deceased?
What is the code or pair of codes in box 7 of the Form 1099-R?
Is the IRA/SEP/SIMPLE box marked?

CraigallaAuthor

Level 2

I am not the surviving spouse. The code is 4 and the IRA/SEP/SIMPLE box is marked X.

Level 15

When entering this Form 1099-R, TurboTax does not permit you to indicate that the distribution was rolled over because a distribution paid to a non-spouse beneficiary from an inherited IRA is not permitted to be rolled over. An IRA inherited by a non-spouse beneficiary is only permitted to be moved by nonreportable trustee-to-trustee transfer.

If this was a distribution paid to you, its deposit into another IRA as a rollover constitutes an excess contribution to that IRA.

If the money was instead paid directly to the new inherited IRA for you benefit by trustee-to-trustee transfer without ever having been paid to you, the movement of the funds was neither distribution nor a rollover and must not be reported by the originating and receiving trustees as such. In this case, you must ask the originating trustee to issue a corrected Form 1099-R showing a distribution of $0 and you must also make sure that the receiving trustee does not report receipt of the funds as a rollover contribution on the Form 5498 from the new inherited IRA.