1099R received for inherited IRA

Forum|Forum|2 months ago
March 18, 2026
2 replies
2 views

Hello,

I inherited an IRA in 2025 and directly transferred it to an IRA account with a different brokerage. I received a 1099R that includes an amount in Box 2a (same as gross distribution amount in Box 1) and has Box 2b checked. Distribution code in Box 7 is "4" and the IRA/SEP/SIMPLE Box is checked.

I have contacted the administrator who issued the 1099R. They acknowledged that the distribution check was made payable to another brokerage and directly transferred, however, they will not re-issue the 1099R. They state that I should just inform my tax preparer that the distribution was transferred.

How to do I enter this 1099R info into TurboTax so that the distribution is not taxed?

Thank you.

IRA

Best answer by dmertz

Expert Reviewed

If the check was made payable to the new IRA for your benefit, not to you, no Form 1099-R should have been issued. Erroneously issuing a Form 1099-R under these circumstances is usually the result of an under-trained bank employee marking the wrong box on the form that initiates the transaction, calling it a distribution instead of a transfer. (Having the check made payable to the brokerage firm for your benefit instead of explicitly to the new IRA for your benefit does introduce some ambiguity as to whether the movement of the funds was a transfer or was instead a distribution.)

Because TurboTax is programmed to know that a distribution made to a non-spouse beneficiary, reported on From 1099-R, is ineligible for rollover, TurboTax will not allow you to report the distribution as having been rolled over.

If the original IRA custodian will not correct the Form 1099-R to show that $0 was distributed, you'll need to submit a substitute Form 1099-R (Form 4852) showing a gross distribution of $0 and explaining that this movement of funds was a trustee-to-trustee transfer, not a distribution. Note that Form 4852 cannot be e-filed.

M

MinhT1

Level 15

Rollovers of an inherited IRA are permitted only if the beneficiary is the spouse.

Please see this IRS document.

Please also see @dmerz's answer below.

[Edited 03/18/2026 | 8:07 AM PST]

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D

dmertz

Level 15

@MinhT1 , TurboTax correctly prohibits a non-spouse beneficiary from reporting a distribution as having been rolled over because such a rollover is not permitted.

D

dmertzAnswer

Level 15

Expert Reviewed

If the check was made payable to the new IRA for your benefit, not to you, no Form 1099-R should have been issued. Erroneously issuing a Form 1099-R under these circumstances is usually the result of an under-trained bank employee marking the wrong box on the form that initiates the transaction, calling it a distribution instead of a transfer. (Having the check made payable to the brokerage firm for your benefit instead of explicitly to the new IRA for your benefit does introduce some ambiguity as to whether the movement of the funds was a transfer or was instead a distribution.)

Because TurboTax is programmed to know that a distribution made to a non-spouse beneficiary, reported on From 1099-R, is ineligible for rollover, TurboTax will not allow you to report the distribution as having been rolled over.

If the original IRA custodian will not correct the Form 1099-R to show that $0 was distributed, you'll need to submit a substitute Form 1099-R (Form 4852) showing a gross distribution of $0 and explaining that this movement of funds was a trustee-to-trustee transfer, not a distribution. Note that Form 4852 cannot be e-filed.