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

[wyomin_ms]

My brother died so I received his 401K.

[MichaelL1]

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.