Hello,
I am 65 years old and widowed in 2024. I inherited my husband's traditional IRA. I then converted 100% to Roth. I did both in 2024.
Using Turbotax Deluxe Online, I cannot find a way when entering this 1099-R t o indicate that it is both inherited and converted to roth ? I can do one or the other.
Because I converted 100% into a Roth IRA, I'm thinking that the inherited status is moot.
I have not yet submitted my return. Unless I receive better advice, I'm planning to enter this 1099-R in Turbotax as converted to Roth, and ignore the fact that it was inherited. The 1099-R Box 7 distribution code is 7 due to my being well over age 59.5. If I were younger, it would have been code 2.
I'll appreciate feedback and advice.
Yes, in your case, great job realizing the conversion to ROTH is the important part here. Side note: Interesting code 7 and not code 4 to indicate the inherited part.
I am very sorry for your loss and am impressed with your handling the tax situation.
Thank you, Amy.
I appreciate your knowledge as well as your confirming and complimenting my analysis.
What happened is that the IRA inherited from your husband was trustee-to-trustee transferred to an IRA of your own before you did the Roth conversion. Such a transfer is not reportable, so the only Form 1099-R that you received is the one for a Roth conversion from your own traditional IRA. When TurboTax asks the horribly worded question, "Did [you] inherit the IRA from [financial institution]," answer No because the distribution was made from your own IRA.