If I inherited an IRA and given a check for my portion, how do I answer the question "Was this withdrawal an RMD?" Yes or No

[macuser_22]

Is the box 2b total distribution on the 1099-R checked?

[clancee41]

It is on one of the 1099-Rs

[macuser_22 · Accepted solution]

You have more than one 1099-R for the inherited IRA?    If a code 4 in box 7 then answer that it was all  RMD.   

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

A total distribution  not only satisfies any RMD it exceeds it

[clancee41]

I inherited several different IRAs. Only one of the 1099-Rs had the total distribution box checked.

[fanfare]

RMDs start in the year following the year of Death.
If you don't have an account anywhere with your name as beneficiary, then the IRAs were liquidated.
Just answer YES.

[fanfare]

you should have gotten something from the executor explaining all this.
An inherited IRA does not have to be liquidated, that should be your choice.

[clancee41]

Unfortunately, that was not explained to me.

[macuser_22]

IRA's that have a named benificuary do not pass through the estate.  They go directly from the financial institution that is the custodian of the account to the benificuary.   The estate executor  would not necessarily have any knowledge of the account or responsibility.  Only if there was no named benificuary or the estate itself was the benificuary would the estate be involved, but in that case the estates beneficiaries receive a K-1 from the estate, not a 1099-R.

[macuser_22]

IRA's that have a named benificuary do not pass through the estate.  They go directly from the financial institution that is the custodian of the account to the benificuary.   The estate executor  would not necessarily have any knowledge of the account or responsibility.  Only if there was no named benificuary or the estate itself was the benificuary would the estate be involved, but in that case the estates beneficiaries receive a K-1 from the estate, not a 1099-R.

[fanfare]

I was confused and perhaps misread the poster's phrase " inherited an IRA". I guess this was not an Inherited IRA. I still don't understand why the poster got a 1099-R.

[macuser_22]

If it is an inherited IRA then the box 7 code on the 1099-R would be a 4.