Inheriting an IRA

Forum|Forum|7 years ago
June 4, 2019
1 reply
9 views

My Dad died last year and he had an IRA that was given to my Mom as she was the beneficiary. Prior to his death, he took a distribution from it. She received a 1099R form for this distribution. It lists the gross distribution and the taxable amount (same). When I am answering the TurboTax questions, I enter the information from the 1099R and I get to the question about Did She Inherit This IRA. I answered Yes. Then the question comes up about where the funds went (into another IRA or not). She transferred the IRA into another IRA in her name. When I get to the Summary page of the income, it lists the distribution as non-taxable and I don't think this is correct. What question am I answering incorrectly? (As a side note, he took a distribution in 2015 too and in the Summary page of the income in the year over year comparison, this is listed under taxable).

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Best answer by LudwigVan_fan

Yes, that distribution should be taxable. He took the distribution, so that will be taxable; even though the 1099R came in her name.

Yes, she did inherit the balance of the IRA; but she didn't inherit that particular distribution.

In answering the questions about the 1099R (and I'm assuming the 1099R is ONLY for the distribution, not moving the balance of the IRA into an inherited IRA)....for the question about where the funds went....(for the distribution only) say it went somewhere else....it didn't go into another IRA (at least based on what you're stating).

That should move the distribution from non-taxable to taxable.

For the balance of the IRA; was there a 1099R for moving the balance from his IRA to her IRA? If so, that would be the inherited IRA....AND that it went into another IRA.

LudwigVan_fan

Answer

Alumni - Champ

Yes, that distribution should be taxable. He took the distribution, so that will be taxable; even though the 1099R came in her name.

Yes, she did inherit the balance of the IRA; but she didn't inherit that particular distribution.

That should move the distribution from non-taxable to taxable.

For the balance of the IRA; was there a 1099R for moving the balance from his IRA to her IRA? If so, that would be the inherited IRA....AND that it went into another IRA.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**