I received a check for a lump sum distribution from an inherited IRA and I'm confused about how to declare it. The 1099-R I received has the "total distribution" boxed checked and a distribution code of 4, but only shows the RMD amount in boxes 1 and 2a. No other amounts are listed. When I enter this information, I don't see a way to tell TurboTax that I took the full distribution. Am I missing something or is my 1099-R incorrect?
As you suggested, that Form 1099-R seems to have the wrong amount in boxes 1 and 2a, so you should contact the payer about this. It would probably make sense to request a filing extension at this point, but you still need to pay your taxes by April 15, which you would do under the assumption that you will receive a Form 1099-R showing the entire $3,439 in boxes 1 and 2a.
IF the amount you received matches the amount in Box 1 - ( Box 4 and 14)
your1099-R is OK
yuu can ignore that checkmark
@mikel67 .
Thanks @fanfare . The amount shown in boxes 1 and 2a is $366. The amount I actually received is $3439 and no taxes were withheld. I suspect the 1099-R is wrong unless there is another way to show the full distribution. Would the 1099-R typically show the full distribution when an IRA is distributed to the beneficiary following the account holders death?
If you received $3,439 from this inherited IRA in 2023, the amount in boxes 1 and 2a should be $3,439. Was the difference, $3,073, moved by nonreportable trustee-to-trustee transfer to another inherited IRA maintained for your benefit instead of being paid to you or was $3,439 actually paid out to you?
Hi @dmertz . The $3439 was paid out to me via check - it was not a nonreportable trustee-to-trustee transfer to another inherited IRA. I expect to pay tax on the $3439 and not just the $366 shown on the 1099-R.
As you suggested, that Form 1099-R seems to have the wrong amount in boxes 1 and 2a, so you should contact the payer about this. It would probably make sense to request a filing extension at this point, but you still need to pay your taxes by April 15, which you would do under the assumption that you will receive a Form 1099-R showing the entire $3,439 in boxes 1 and 2a.
Thanks for confirming @dmertz. I reached out to the payer and assume it will take a while to resolve. I will recalculate my taxes based on what the 1099-R should say and file for an extension. Appreciate the help.