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bprice1946
Level 2

My inherited IRA 1099R flows to the form 8606 in error

Everywhere I read says that when the 1099-R has code 4 (inherited), then the gross amount should not flow to the taxpayer's 8606. Unfortunately, it does for the 2020 version of TurboTax. I can't figure out a way to make it stop.

 

There is no basis for my inherited IRA, so I don't need a form 8606 for the inherited IRA. I really would prefer not to override the 8606 so that my taxable amount would be correct.  Since inherited IRA's are supposed to kept separate and TurboTax is not able to have a separate 8606 for inherited IRA's, I would think it would be consistent and not have the amount flow to the 8606 whenever it is a code 4

 

Hope someone has an answer or TurboTax provides a fix.

1 Best answer

Accepted Solutions
bprice1946
Level 2

My inherited IRA 1099R flows to the form 8606 in error

Found this answer. Solve the problem.

 

This is a bug in TurboTax.  See the workaround provided by macuser_22 in this thread:

https://ttlc.intuit.com/community/retirement/discussion/re-inherited-ira-gross-amount-flows-to-my-fo...

View solution in original post

3 Replies
dmertz
Level 15

My inherited IRA 1099R flows to the form 8606 in error

TurboTax presently has a bug that is causing distributions from an inherited IRA to inappropriately appear on the beneficiary's own Form 8606.  This is being investigated by Intuit.

bprice1946
Level 2

My inherited IRA 1099R flows to the form 8606 in error

Found this answer. Solve the problem.

 

This is a bug in TurboTax.  See the workaround provided by macuser_22 in this thread:

https://ttlc.intuit.com/community/retirement/discussion/re-inherited-ira-gross-amount-flows-to-my-fo...

View solution in original post

SJGTX
Level 3

My inherited IRA 1099R flows to the form 8606 in error

This was a known bug with Turbo Tax, and I am glad to report it appears to have been fixed. The issue with the Inherited IRA distributions showing on Form 8606 appears to have been resolved as of 3/5/2021. Make sure you download the updates from 3/4/2021. Recently, there have been related reports on the support forum from many saying they were getting error messages about Form 8606 when trying to file even if they didn't have an Inherited IRA. but I suspect Turbo Tax put a hold on anyone filing an 8606 until they got the Inherited IRA issue resolved. In any event, I was able to e-file successfully and the figures from the Inherited IRA distribution were correctly populated on the return. Whew!

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