Turbo tax is asking about a 1099-R which is an RMD I took from an inherited IRA that I inherited from my mother who passed away in 2011. The inh IRA account was opened at Schwab for benefit of myself around the same time frame and I have been taking RMDs yearly from it. Why am I being asked this question and how do I respond to it?
Thank You
The intent of the question is: did <tapayer> inherit [this] IRA [at] Schwab ?
Answer Yes. For unknown reasons, TurboTax does not simply infer from code 4 in box 7 of the Form 1099-R that the distribution is from an inherited IRA and requires you to inform TurboTax that it is from an inherited IRA. TurboTax needs to know that it's from an inherited IRA because the tax treatment of distributions from inherited IRAs must be determined entirely independently from anything having to do with your own IRAs. (TurboTax does need to ask the question for a distribution from a Roth IRA because the code in box 7 does not identify if the distribution is from an inherited Roth IRA or from your own Roth IRA.)
Thank you dmertz. Why isn't the question simply phrased as "did [taxpayer] inherit the IRA?" Answer - Yes.
Adding the brokerage name at the end of the question adds confusion about what TT is actually asking and why.
Thanks for your response, but screen actually says from Schwab not at Schwab....I would not have had questions if it had said at Schwab...