is there a way in turbotax to offset proceeds from an inherited IRA. I have entered the 1099R for the distrib. of the IRA but now need to enter where a new IRA was setup

[tmills81681]

The inherited IRA proceeds were designated "inherited" and check was deposited into a new IRA

[fanfare]

a check from an Inherited IRA is ordinary  income.

what you do next with the money is up to you.

@tmills81681 

[Opus 17 · Accepted solution]

Please clarify what you did and what code is in box 7 of your 1099-R.

You absolutely may not withdraw an inherited IRA and contribute to a new IRA in your own name with no tax consequences.   You can rollover an inherited IRA at one bank to an inherited IRA at another bank, but it must always remain as an "inherited IRA" (titled as "John Smith as beneficiary for Jane Doe" or whatever.

If you did a rollover from one inherited IRA to another inherited IRA, you should not have gotten a 1099-R at all.  If you did, depending on the code, you would enter the 1099-R and when the program asks what did you do with the money, say you rolled it over.

However, if you cashed out the inherited IRA, and deposited the money in an IRA in your own name, the withdrawal is fully taxable.  And the contribution is treated as a regular contribution, not a rollover, and is limited to $8000 (minus any other contributions you already made) and might or might not be tax deductible, depending on your other tax situations.   Excess contributions are subject to penalties.  If you did do a complete cash out, and contribution to a new IRA in your own name (not inherited), then you should immediately apply for an extension to file your tax return because it will likely take more than 2 business days to fix.