If I cashed out an inherited IRA from my mom in 2025 and paid taxes, do I indicate in Turbo tax that I inherited and IRA or cash? If an IRA then RMD steps are asked.

[clayton-cart77]

I received a 1099-R indicating the distribution and the taxes paid with a distribution code of "4" (Death). But I had my mom's advisor cash it out and withdraw taxes before transferring to me. This was completed before end of 2025. So I am wondering if the situation of "I inherited this IRA" does not apply.

[dmertz · Accepted solution]

You must mark the box labeled "I inherited this IRA" because you inherited the IRA from which the distribution being reported on the code-4 Form 1099-R was made.  The taxable amount (likely the entire amount in box 1) will be added to your AGI and the tax withholding shown in box 4 of this Form 1099-R will be credited on Form 1040 line 25b.  Any state tax withholding shown will be credited on your state tax return.