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Level 1

Question

INHERITED IRA

Forum|Forum|2 years ago
February 2, 2024
3 replies
35 views

I INHERITED A TRADITIONAL IRA FROM MY DECEASED MOTHER WHO WAS 91. I RECEIVED FORM 5498 FROM FIDELITY FOR THE ENTIRE INHERITED AMOUNT AS A 2023 IRA CONTRIBUTION. I AM GETTING AN IRS PENALTY FOR THIS AMOUNT. AM I DOING SOMETHING WRONG OR WHAT OPTIONS DO I HAVE

Level 15

What is the code in box 7 on the Form 1099-R that you entered?

Level 15

The inherited IRA was only permitted to be moved by nonreportable trustee-to-trustee transfer, so there should be nothing on the Form 5498 in any of the contribution boxes (if what was inherited was truly an IRA). Other than a direct rollover contribution from an employer's qualified retirement plan like a 401(k) reported in box 2 of the Form 5498, contributions are not permitted to be made to an inherited IRA.

Level 15

"AM I DOING SOMETHING WRONG"

contribution is not allowed to an Inherited IRA.

Only withdrawal.