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Death exception to tax on early distributions
In 2016, I inherited a simple IRA upon the death of my father. I received cash for this IRA. Does my father' death qualify as the death exception to avoid paying taxes on the early distribution? I don't understand who is described as the "death"
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Death exception to tax on early distributions
If the distribution was due to the death of your father (there should have been a 4 in box 7 of Form 1099-R) there should not be a penalty on line 59 of Form 1040. If there is a penalty, this qualifies as an exception to the early withdrawal penalty.
Check your return to verify whether there is a penalty being calculated:
- Click on the My Account link at the top of the window.
- Click on the Tools link in the dropdown menu.
- Click on the View My Tax Summary option in the Tools Center box.
- Click on Preview my 1040 at the top of the Tax Summary Screen.
- In the Preview My 1040 screen, scroll down to line 59 of Form 1040.
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Death exception to tax on early distributions
If there is a penalty, you made a mistake somewhere.
there is no penalty applied to a cashed out inherited IRA which is what you have..
there is no penalty applied to a cashed out inherited IRA which is what you have..
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