I transferred all funds from my inherited IRA (spouse) into a beneficiary IRA, then withdrew the balance (-10% tax withholding). Isn’t this amount taxable?

phild3 · ‎March 24, 2021

Turbo Tax keeps showing as a rollover, but I withdrew all funds and closed the account.

JohnB5677 · ‎March 25, 2021

If you inherit an IRA from your deceased spouse, you can roll it over into another retirement account without any tax implications.

Once you withdrew it, it became taxable as ordinary income. If you were under 59 1/2 you would also incur a 10% penalty.

You should have received two 1099-R's. One for your spouses IRA that you rolled over, and one for that account that you closed out.

The rollover is not taxable. The withdrawal is fully taxable.

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