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Returning Member
posted Feb 10, 2025 9:24:46 AM

Inherited 1099R

I inherited a non Qualified Annuity (4D in box 7 of 1099R). 

Deceased was born before 1952, so the turbo tax is asking if the withdrawal was an RMD - since all accounts were closed upon death, so do I answer this question yes or no?

If I answer no - it ask me if I want to use the special averaging method?

if I answer yes, some was RMD, then it ask if all or part was RMD..how would I answer that?

0 1 539
1 Replies
Expert Alumni
Feb 20, 2025 7:15:51 PM

If you took the entire amount out of the account already, you can answer that "yes" you took an RMD and that the all of the distribution was RMD.  This will allow the program to properly treat the income so that there is no penalty for not withdrawing the minimum required amounts.