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wyomin_ms
New Member

I have a 1099 R that I received due to the death of a family member. How does that affect my tax situation?

My brother died so I received his 401K.
1 Reply

I have a 1099 R that I received due to the death of a family member. How does that affect my tax situation?

The 1099R needs to be reported on your return and the distribution from the retirement account will be taxable to you as ordinary income.  

There will be no 10% early withdrawal penalty on an inherited retirement account. . 

There is no stepped up basis on the retirement account.  

To enter this in TurboTax:

To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
  • Enter the 1099R exactly as you received it. 
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