My mother passed away in late 2017 and we received a 1099r in 2018 for retirement that was automaticly deposited to her bank account in early 2018. How do we handle this

[LeeM · Accepted solution]

That would most likely be part of her Estate Income Tax Return. If it was distributed to beneficiaries, then they would receive a tax document from the Estate tax return to include in their personal tax return.

I would contact your estate executor.

[dmertz]

Since the distribution was deposited in 2018, it seems that the distribution occurred after your mother's death.  Upon the death of your mother, by operation of law the retirement account became maintained for the benefit of the beneficiary(s) of the account effective the date of your mother's death.

If this distribution happened after your mother's death, the distribution should have been paid to the beneficiary of the retirement account, not to you mother's bank account.  It would only be income payable to your mother's estate if the beneficiary of the account was your mother's estate and, if so, should have been paid to the estate account.  Contact the payer to see if they will make the correction.  If there is any tax withholding, that complicates matters because your mother's final tax return would have been her 2017 tax return.