Direct transfer of inherited IRA with distribution code 4G is being considered taxable.

Chartrand · ‎February 26, 2020

I inherited a 401K plan and had it transferred directly from Nationwide to Vanguard. The 1099-R distribution code is 4G (4=death, G=direct rollover). TurboTax is considering this a taxable withdrawal. Why? What can I modify to correct this? Thanks.

Problem has been solved. Thanks to all!

Chartrand · ‎February 26, 2020

Update to above: This was a non-spouse account.

macuser_22 · ‎February 26, 2020

Where do you see it as taxable? Did you say that it was not rolled to Roth.?

Was a RMD involved (was the deceased older then 70n1/2)?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Direct transfer of inherited IRA with distribution code 4G is being considered taxable.