Mother passed away in 2016. Problem with IRA. Distribution taken in Jan. Do I list the distribution for 2016 or 2017? How can I avoid the penalty? Distribution $489

mtknakmjk · ‎June 5, 2019

IsabellaG · ‎June 5, 2019

I'm sorry for your loss. If the distribution was taken in January of 2017, then it needs to be reported in 2017, and a 1099-R will be issued next year for this. It won't be reported on your mother's tax return, because 2016 will be her final return. Either the estate or the beneficiaries will report this income. Why do you believe that there will be a penalty?

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IsabellaG · ‎June 5, 2019

I'm sorry for your loss. If the distribution was taken in January of 2017, then it needs to be reported in 2017, and a 1099-R will be issued next year for this. It won't be reported on your mother's tax return, because 2016 will be her final return. Either the estate or the beneficiaries will report this income. Why do you believe that there will be a penalty?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Mother passed away in 2016. Problem with IRA. Distribution taken in Jan. Do I list the distribution for 2016 or 2017? How can I avoid the penalty? Distribution $489