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Level 2
posted Jan 29, 2025 9:20:00 AM

1099-R and Question about inheriting IRA

I inherited (assumed) the IRA of my spouse who died in mid-2024.  In late 2024, I took a distribution from that IRA and received a 1099-R with Code 7 = taxable.  That's correct.  After I input into TurboTax, I get question about inheriting the IRA from spouse.  If I answer YES, the software makes this distribution nontaxable rollover.  That's not true.  Any help on this question?  Thank you.

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1 Best answer
Level 15
Jan 29, 2025 7:38:20 PM

Since you assumed ownership. it is no longer an inherited IRA.

do not answer YES to the question.

 

@Robert5753 

2 Replies
Level 15
Jan 29, 2025 7:38:20 PM

Since you assumed ownership. it is no longer an inherited IRA.

do not answer YES to the question.

 

@Robert5753 

Level 2
Jan 30, 2025 7:17:29 AM

Thanks very much.  Now the 1040 looks correct.  Too bad the TT question is worded that way!