Solved: Can lump sum averaging be used to figure tax on a retirement death benefit? Decedent and beneficiary were both born before Jan. 1936.
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Can lump sum averaging be used to figure tax on a retirement death benefit? Decedent and beneficiary were both born before Jan. 1936.

1099-r was received.  Code 4 "Death" is in box 7.  

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Can lump sum averaging be used to figure tax on a retirement death benefit? Decedent and beneficiary were both born before Jan. 1936.

It appears so, if a number of conditions are met. Please review these. During the interview process for the 1099-R entry TT should ask you about this. Be on the lookout for any questions about it and carefully answer them.

https://ttlc.intuit.com/questions/4318825-ten-year-averaging-of-401k-pension-who-can-use-it

https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-4972-tax-on-lump-sum-distrib...

https://www.irs.gov/taxtopics/tc412

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Level 8

Can lump sum averaging be used to figure tax on a retirement death benefit? Decedent and beneficiary were both born before Jan. 1936.

It appears so, if a number of conditions are met. Please review these. During the interview process for the 1099-R entry TT should ask you about this. Be on the lookout for any questions about it and carefully answer them.

https://ttlc.intuit.com/questions/4318825-ten-year-averaging-of-401k-pension-who-can-use-it

https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-4972-tax-on-lump-sum-distrib...

https://www.irs.gov/taxtopics/tc412

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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