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Level 1
June 4, 2019
Solved

Is the 2016 distribution of a inherited IRA all taxable to me and if i got a 1099-R with a distribution code of 4?

  • June 4, 2019
  • 1 reply
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Mother died in 2016 and her IRA was distributed to me at that time.   The 1099-R had a distribution code of 4 and since with was inhierited i thought it would be mostly non-taxable.  Instead the full amount was taxed.

Best answer by Texas Roger

Since it was in a tax deferred account and no one has paid the tax on it, the one who inherits it must pay the tax. 

1 reply

Level 15
June 4, 2019

Since it was in a tax deferred account and no one has paid the tax on it, the one who inherits it must pay the tax. 

VolvoGirl
Level 15
June 4, 2019
Maybe you can find out if she had any basis in it.  Like non-deductible contributions or after tax.  Look though her tax returns for any 8606 forms.