I received a gross distribution. I rolled it over to a traditional IRA so it should not be taxable. It shows it as non taxable in box 2a. Why is it included as income?

My father passed and I received a distribution of his government IRA.

1877

Expert Alumni

Mar 28, 2024 12:54:24 PM

If you inherited an IRA from your father, you should have set up an "Inherited IRA" account. This account needs to be separate from your own account(s) and must be depleted within 10 years.

If you rolled it over, you essentially took the distribution and later made a contribution.

The situation with IRA accounts which are inherited changed in 2020 because of the SECURE Act.

Link for more info

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I received a gross distribution. I rolled it over to a traditional IRA so it should not be taxable. It shows it as non taxable in box 2a. Why is it included as income?