I inherited an IRA and when I rolled it over to my own bank it is listed as a "Beneficiary IRA" In terms of reporting the rollover is this a TRADITIONAL IRA?

[elisahan]

The old bank checked box 2b as taxable amount not determined on my 1099-r so I need to claim the rollover/new acct.

[Bsch4477 · Accepted solution]

It’s like a traditional IRA but if you are a non spouse you have to withdraw all of the funds within 10 years. 

[dmertz]

A non-spouse beneficiary is not permitted to roll over a distribution from an inherited IRA.  A non-spouse beneficiary is only permitted to move an inherited IRA by nonreportable trustee-to-trustee transfer for which no Form 1099-R is generated.

[elisahan]

Actually you can.  The new account is ALSO listed as a beneficiary IRA with my name as beneficiary of "deceased person".  The actual problem which I eventually figured out is that Ascensus (the company who managed the IRA's for the original bank) and the original bank had an informational mix up and when they created the 1099-R they reported 100% of the dispersal as TAXABLE when in reality it was not.  After a couple weeks trying to figure out how to tell Turbo Tax there was a rollover and it telling me the 1099-R is where I should look, I finally got out my rollover paperwork and phoned Ascensus with a WTH message.  They called back first thing in the morning and said a corrected form would be waiting for us at the originating bank the next day.  ...  problem solved ...

[dmertz]

You said that the inherited IRA was rolled over.  Don't confuse a trustee-to-trustee transfer of an inherited IRA, which is permitted, with a distribution and rollover, which is not permitted by a non-spouse beneficiary.   If a distribution is paid to a non-spouse beneficiary, properly reportable on Form 1099-R with code 4 in box 7 and the IRA/SEP/SIMPLE box marked, that beneficiary is prohibited by law from depositing the funds back into an inherited IRA as a rollover.

It sounds like what happened in this case is that the IRA was actually properly moved by trustee-to-trustee transfer and the originating bank mistakenly reported it as a distribution.  This is an extremely common error made by bank representatives because they are rarely properly trained to understand the difference.  A trustee-to-trustee transfer is neither a distribution nor a rollover, so it is not reportable.  The Ascensus-provided form for moving funds from an IRA has boxes to mark to indicate that the funds are either being distributed or are being transferred, and, in the case of moving an inherited IRA, the bank reps frequently mark the wrong box for you, causing the banking system to issue a Form 1099-R for what actually was a transfer.  Every bank rep I have dealt with regarding movement of an inherited IRA has initially made this mistake when filling out this form.  I would expect the corrected Form 1099-R from the bank to have zeros in boxes 1 and 2a to indicate that no distribution actually occurred and there is nothing to report of this on your tax return.