Estate Roth 1099-R

5 replies
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Do I have to enter the 1099-R for a roth IRA with no taxes due? If so where do I enter as 2a is empty?

dmertzAnswer

Level 15

I only asking how to enter the information into TurboTax Business because this is an estate tax return. These are my steps

Federal Taxes

Income

other income or loss

I entered the Inherited traditional IRA 1099-R box 2a

I entered the Inherited Roth IRA 1099-R box 2a

Example:

Other Income Amount

1099-R Traditional Box 2a $5000

1099-R Roth IRA Box 2a $0

I want to know if I need to go to the distribution tab and enter the total of the distributions ($10,000) to Beneficiaries, which would include non-taxable Roth IRA? FYI-I am the Executor and the only Beneficiary

Yes, in the distributions section enter the full amount distributed ($10,000). TurboTax will include this on Schedule B lines 9, 11 and 13. Because the taxable amount on line 14 is less than the amount on line 13, the income distribution deduction on line 15 will just be the taxable amount from line 14 and this same amount (or a lower amount if the estate has deductible expenses taxes and fees) will appear in box 5 of the Schedule K-1 that the estate provides to you for reporting on your individual tax return.

HopeS

Alumni - Intuit

If you've had your Roth IRA for less than five years: Your earnings will be subject to taxes at your normal tax rate, but you will not be subject to the 10% penalty. If you've had your Roth IRA for more than five years: You can withdraw your Roth IRA earnings with no taxes or penalties. Since your box 2a shows no taxable amount leave it blank when you enter your 1099-R.

Please follow these instructions to enter your Form 1099-R :

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click "Wages & Income" on the top
Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter your 1099-R
Continue through the questions

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount).

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

Please see the link below for additional information:

ROTH Withdrawals

@DHturb60

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DHturb60Author

Level 2

I am using TurboTax Business because this is an estate tax return. I went to Federal Taxes-Income-other income or loss and entered both the Inherited IRA taxable amount from 1099-R box 2a and the Inherited Roth IRA 1099-R box 2a as follows:

Example:

Other Income Amount

1099-R Traditional Box 2a $5000

1099-R Roth IRA Box 2a $0

Is this correct and do I also need to also enter the total amount of distributions to Beneficiaries under the distribution tab? This would be the total amount that was taken from both IRAs. Is this correct??

dmertz

Level 15

The inherited Roth IRA distribution is taxable income to the same extent as it would have been taxable income if distributed to the decedent (had the decedent not dies). It depends on whether or not at the time of the distribution the decedent would have completed completed the 5-year holding period for qualified distributions. If the decedent made their first Roth IRA contribution for some year before 2018, the inherited Roth IRA distribution received by the estate in 2022 is a qualified distribution and is nontaxable.