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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
My brother's estate received a deposit from an IRA that my family didn't know existed and plan to place this deposit into the IRA that was setup by our probate lawyer. I received a 1099-R for that deposit with a distribution code of 4G in box 7.
How do I file a 1041 without having to pay taxes on income was supposed to rolled over to that IRA as TurboTax Business doesn't allow me to complete a section that includes a 1099-R?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
This distribution cannot be rolled over to an inherited IRA. A 401(k) is permitted to be rolled over to an inherited IRA only for the benefit of an individual who is a designated beneficiary. An estate is not an individual and therefore cannot be a designated beneficiary. A 401(k) which has no designated beneficiary can only be distributed as income to the estate (code 4 on the Form 1099-R), not rolled over to an inherited IRA for the benefit of the estate (codes 4 and G on the Form 1099-R) or anyone else (although PLRs have allowed a surviving spouse to roll over to their own IRA under certain circumstances). Since the distribution was to the estate of the deceased, you must request that the payer issue a corrected Form 1099-R showing taxable amount in box 2a and showing only code 4 in box 7.
You should contact the probate lawyer and inform him or her of the error in attempting to set up an inherited IRA to receive this distribution.
Once the correct taxable amount shown in box 2a of a code 4 the Form 1099-R, see the following answer by tagteam describing how to report a distribution to the estate as Other Income on Form 1041 and possibly passed through as Distributable Net Income to the estate beneficiaries on Schedules K-1:
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
Is the rollover IRA set up in your name ?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
You may be confused as to whether the IRA is in your name, OR in your brother's name with you as beneficiary. The latter would be the correct title on the account.
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
Somebody has to pay the tax on that IRA if it was liquidated - that is implied by Code 4, and your further comments ie the bank now has the funds. (whose name is on THAT account?, it should again be the Estate)
The IRA was liquidated into the Estate, so the Estate owes the tax.
The code G would be incorrect and contradictory.
Get the idea that it would be a "rollover in your mind" out of your mind because that is not allowed.
Typically, on this forum the 1099-R superusers will tell you to ask for a corrected 1099-R,
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
Perhaps you answered the TurboTax followup questions incorrectly.
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I'm the executor of an estate and received a 1099-R with "4G" distribution code in box 7. How do I file a 1041 as TT Business doesn't allow entering 1099s?
This distribution cannot be rolled over to an inherited IRA. A 401(k) is permitted to be rolled over to an inherited IRA only for the benefit of an individual who is a designated beneficiary. An estate is not an individual and therefore cannot be a designated beneficiary. A 401(k) which has no designated beneficiary can only be distributed as income to the estate (code 4 on the Form 1099-R), not rolled over to an inherited IRA for the benefit of the estate (codes 4 and G on the Form 1099-R) or anyone else (although PLRs have allowed a surviving spouse to roll over to their own IRA under certain circumstances). Since the distribution was to the estate of the deceased, you must request that the payer issue a corrected Form 1099-R showing taxable amount in box 2a and showing only code 4 in box 7.
You should contact the probate lawyer and inform him or her of the error in attempting to set up an inherited IRA to receive this distribution.
Once the correct taxable amount shown in box 2a of a code 4 the Form 1099-R, see the following answer by tagteam describing how to report a distribution to the estate as Other Income on Form 1041 and possibly passed through as Distributable Net Income to the estate beneficiaries on Schedules K-1:
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