How do I enter a 1099-R I was beneficiary of? The deceased was 72, it was a non-Qualifying Annuity, so no RMD is required?

[VictoriaD75]

To enter your 1099-R, follow these steps:

• Under the Federal menu, choose Wages & Income
• Expand the menu for Retirement Plans and Social Security
• Click Start/Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
• Answer Yes to Did you receive any 1099-R forms?. Click Continue
• You may either import the form or choose I'll type it in myself 
• Choose Form 1099-R, withdrawal of money from 401(k) retirement plans, pensions, IRAs, etc.
• Enter the information exactly as it matches the 1099-R on the screen that follows, including distribution code in box 7
• If the code is 4-Death in box 7, the software will recognize it as inherited income
• After selecting the age of the original owner of the annuity, you will be asked if it was an RMD. Answer No. 
• Continue entering the information on the screens that follow

[katiekjt]

Hi - I goT a different answer from DoninGA SuperUser and now I'm really confused:

TurboTax is asking me for Required Minimum Distribution information on a 1099-R that I entered for a non-qualified annuity my wife inherited from her mom. I didn't think RMD applied. Not sure how to answer the prompts.

25 helpful votes

I entered 1099-R box 7: 4 (Death) D (nonqualified annuity). Later Turbo Tax is asking how much of the annuity distribution was RMD. How should I answer?

Recommended Answer

Just answer all of the amount received was an RMD.  It will not affect your tax return in any way by answering in this way.

By: DoninGA SuperUser

[JulieS]

It might sound contradictory, but since the RMD rules do not apply in this case, you can either say none of it was an RMD, or that all of it was an RMD. You will get the same result, which is no penalty for failure to take your RMD.

This question does not appear on the tax return, it is just used to help TurboTax figure out if you owe a penalty (you do not).