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Craigalla
New Member

How do I report a 1099-R for an inherited IRA account that was moved from one broker to another?

 
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3 Replies
dmertz
Level 15

How do I report a 1099-R for an inherited IRA account that was moved from one broker to another?

Are you the surviving spouse of the deceased?
What is the code or pair of codes in box 7 of the Form 1099-R?
Is the IRA/SEP/SIMPLE box marked?
Craigalla
New Member

How do I report a 1099-R for an inherited IRA account that was moved from one broker to another?

I am not the surviving spouse. The code is 4 and the IRA/SEP/SIMPLE box is marked X.
dmertz
Level 15

How do I report a 1099-R for an inherited IRA account that was moved from one broker to another?

When entering this Form 1099-R, TurboTax does not permit you to indicate that the distribution was rolled over because a distribution paid to a non-spouse beneficiary from an inherited IRA is not permitted to be rolled over.  An IRA inherited by a non-spouse beneficiary is only permitted to be moved by nonreportable trustee-to-trustee transfer.

If this was a distribution paid to you, its deposit into another IRA as a rollover constitutes an excess contribution to that IRA.

If the money was instead paid directly to the new inherited IRA for you benefit by trustee-to-trustee transfer without ever having been paid to you, the movement of the funds was neither distribution nor a rollover and must not be reported by the originating and receiving trustees as such.  In this case, you must ask the originating trustee to issue a corrected Form 1099-R showing a distribution of $0 and you must also make sure that the receiving trustee does not report receipt of the funds as a rollover contribution on the Form 5498 from the new inherited IRA.

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