INHERITED IRA

[SBEBBTIDE]

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

[DoninGA]

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

[dmertz]

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.

[fanfare]

"AM I DOING SOMETHING WRONG"

contribution is not allowed to an Inherited IRA.

Only withdrawal.

@SBEBBTIDE