I'm helping my widowed mother-in-law, now in her 80's, with her taxes.
Her spouse, my father-in-law, died in 2021 while also in his 80's.
He was sole owner of an annuity set up, as I understand, about a decade ago within a traditional IRA, as joint and 100% last survivor. He was listed as primary annuitant, and she was listed as joint annuitant. The company that manages the annuity now lists her as owner. I see no discussion about anyone being a "beneficiary."
Before his death they jointly received a monthly annuity payment, which now continues to come to her (until time of her death).
She received a 2022 Form1099R for this annuity.
When I enter this form into Turbo Tax, the software asks if she "inherited" this IRA. I'm not sure how to reply and need some help from the community with this.
I've tried entering both a "yes" and then a "no" answer.
Even though each answer takes me through a different progression of questions, it appears that, at the end of the day, her tax liability is no different whichever answer I choose. As a result, though I may be wrong, I'm now not sure whether it matters all that much which answer I choose.
I would greatly appreciate any insight that anyone can provide.
Thank you!!
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If the Form 1099-R has code 4 in box 7, it's inherited, otherwise it's not inherited.
If the Form 1099-R has code 4 in box 7, it's inherited, otherwise it's not inherited.
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