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posted Feb 26, 2024 8:33:15 AM

Do I need to include a 1099-R for a ROTH IRA that was received upon the death of my father?

My wife's father died and the ROTH IRA was inherited as his accounts were distributed.  We received a 1099-R for this transaction.

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1 Best answer
Expert Alumni
Feb 26, 2024 8:52:42 AM

Yes, you want to enter the Form 1099-R on your return, however the codes in Box 7 will determine the taxability, if any, for your tax return.

  • Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.
  • Where do I enter a 1099-R?

2 Replies
Expert Alumni
Feb 26, 2024 8:52:42 AM

Yes, you want to enter the Form 1099-R on your return, however the codes in Box 7 will determine the taxability, if any, for your tax return.

  • Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.
  • Where do I enter a 1099-R?

Level 15
Feb 26, 2024 8:56:36 AM

If his IRA was cashed out and distributed, and you got a 1099-R in your name, then that is taxable income to you.  (Because it was inherited, it is not subject to the 10% penalty if you are under age 59-1/2.  But it is taxable income since no one paid tax on the money when it was contributed, so all the taxes are paid when it is withdrawn or distributed.)