1099-R box 7 death

[andrew1122]

1099-R box 7 checked for death distribution and TurboTax saying I owe tax while IRS website says I don’t as I read it

[TomD8 · Accepted solution]

When a taxpayer receives a distribution from an inherited IRA, they should receive from the financial instruction a 1099-R, with a Distribution Code of '4' in Box 7. This gross distribution is usually fully taxable to the beneficiary/taxpayer unless the deceased owner had made non-deductible contributions to the IRA. However, a distribution from an IRA to a beneficiary that has been made due to the Death of the original owner is not subject to the 10% early withdrawal penalty, regardless of the age of the beneficiary or the deceased owner.