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badbaum
New Member

How Do I Enter Money Received From Deceased Parent 401k?

The money in question came from a 401k that was split between 4 children upon father's death. The 1099-R is for the Estate and lists the full amount. We were paid by the estate.  We received no other tax documentation.  How do I enter just the amount we received in Turbo Tax?
7 Replies
JamesG1
Expert Alumni

How Do I Enter Money Received From Deceased Parent 401k?

It sounds like the original 1099-R was reported on a IRS form 1041.

 

Have you received a K-1 from the administrator of the estate that reports the taxable income, if any, that you received from the estate?  Are you able to contact the administrator of the estate? 

 

If income to you does result from this transaction, perhaps it is to be reported on next year’s IRS form 1040?

 

Income can be reported by following these steps.

  • Down the left side of the screen, click Federal.
  • Across the top of the screen, click Income & expenses.
  • At the screen Your Income and expenses, scroll down to Retirement plans and Social Security.
  • Click Show more to the right.
  • Click Start/Revisit to the right of IRA, 401(k), pension plan withdrawals (1099-R).
  • At the screen Did you receive any 1099R forms?, click Yes.
  • At the screen Let’s import your tax info, click on I’ll type it in myself.
  • At the screen Tell us which 1099-R you have, click on I need to prepare a substitute 1099-R.
  • Enter the correct information.
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badbaum
New Member

How Do I Enter Money Received From Deceased Parent 401k?

I have not received a K-1.  Is the administrator the same as the executor? My sister-in-law, who actually wrote us the check, was the executor.  Would the K-1 come from her or the estate lawyer?

 

 

Irene2805
Expert Alumni

How Do I Enter Money Received From Deceased Parent 401k?

Yes, the administrator is the same as the executor -- whoever is in charge of the estate.The K-1 should come from whoever is preparing the tax return (form 1041) for the estate.

badbaum
New Member

How Do I Enter Money Received From Deceased Parent 401k?

So...the administrator (executor) is my sister-in-law who doesn't have the first idea how to generate a K-1 (she did not use an accountant when distributing funds from the estate).  Is there any way for me to file without a K-1?

ThomasM125
Expert Alumni

How Do I Enter Money Received From Deceased Parent 401k?

Probably the estate received the 1099-R form which listed the estate tax ID number on it. If the estate earned over $600 in income, then an estate tax return should be filed. As part of the estate tax return a schedule K-1 would be prepared and given to the beneficiaries so they could report their share of the estate income on their tax return.

 

If the money is from a 401-k, then it would normally be fully taxable. If an estate return is not prepared, I would suggest the recipient of the distribution enter a mock form 1099-R in TurboTax and report the income as being in box 1 (gross distribution), and in box 7 use code 7 (normal distribution). 

 

Also, if you can find the form 1099-R that was issued to the estate, you can use that information to enter the form in TurboTax, but just enter the amount that the beneficiary received.

 

The form 1099-R in entered in the "Retirement Plans and Social Security" section, which is in the "Income and Expenses" area of TurboTax.

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badbaum
New Member

How Do I Enter Money Received From Deceased Parent 401k?

So now I have a K-1 (actually an IT-205 - New York Schedule K1 Equivalent it says).  But now I am unsure where to enter this in Turbo Tax.  Any help would be appreciated.  Thanks!

Opus 17
Level 15

How Do I Enter Money Received From Deceased Parent 401k?


@badbaum wrote:

So now I have a K-1 (actually an IT-205 - New York Schedule K1 Equivalent it says).  But now I am unsure where to enter this in Turbo Tax.  Any help would be appreciated.  Thanks!


In the online version, I believe you need to upgrade to Premier.  Then it should be on the Wages and Income page.  You may need to run through the entire interview step by step until you get to it, or you might be able to click "Show me all choices" or something like that.  You can also try entering "K-1" in the search box and select "jump to form."

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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