I'm pretty sure you're in the right place. It sounds like you were the (or one of) beneficiary of you Father's 401(k). A Form 1099-R is for a distribution of any sort from a "qualified" (retirement) account. The code in Box 7 of the 1099-R should be a 4 -Death. This indicates there is no early withdrawal, but since it was a 401(k) it will be taxable. Just enter it in TurboTax and the program will determine how much is taxable.
Turbo Tax says to enter the code from the 1099-R which, in my case is a ‘7’ – normal distribution.
My father passed so I would think ‘4 - death’ would be the correct code.
I agree that your answer sounds correct, however it is counter to the written instructions within the TurboTax software.
What instruction? @Timrichpt This thread was about an inherited account. Is that your case?
Is your name and SSN on the 1099-R?
Is the IRA/SEP/SIMPLE box checked?
Yes, this is an inherited, non-qualified account for my dad’s military pension.
Yes, my name and Social Security number is on the 1099-R.
No, the SIMPLE/ SEP IRA box is not checked.
I’ll see if I can screenshot the example. Thanks for your help.
You are correct. If it is inherited (and you name and SSN indicated that the trustee of the account recognizes you as the beneficiary) then a code 7 is improper. It should be a code 4. A code 7 implies that it is "your" account, not your fathers.
It should also have your fathers name on the 1099-R with you as beneficiary. Inherited retirement accounts must remain in the name of the deceased.
Contact the payer for a corrected 1099-R.
Why does turbo tax ask if the person was born before or after 1952
If the box 7 code on your 1099-R is 4D, the question should not appear; we are working to update the 1099-R interview. In the meantime, when asked when the decedent was born, answer they were born AFTER January 1, 1952, whether true or not. @HEFEWEIZEN