Accountants have told me that I don't have to pay taxes on a 1099 R inherited - lump sum amount... Death of family - true ?

[SweetieJean]

What type of 1099-R: Pension? IRA? Life Insurance? Annuity?
Is there a reason you do not trust the accountants, and are asking the public?

[Ashby]

You do pay tax on the 1099-R if it is a taxable account. But, you are excluded from the 10% penalty for early distribution.

[SweetieJean]

It may depend upon the type.

[carisuemovies]

inheritance

[Ashby]

SweetieJean means the type of retirement account that was inherited. However, the great majority of accounts are taxable when distributed. IRAs, 401K, etc. are taxable accounts. However, you may want to contact the retirement plan administrator or a CPA for further clarification.