I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

[gailmowat]

I did not withdraw from my own account.

[DDollar]

I'm pretty sure you're in the right place.  It sounds like you were the (or one of) beneficiary of you Father's 401(k).  A Form 1099-R is for a distribution of any sort from a "qualified" (retirement) account.  The code in Box 7 of the 1099-R should be a 4 -Death.  This indicates there is no early withdrawal, but since it was a 401(k) it will be taxable.  Just enter it in TurboTax and the program will determine how much is taxable.

[Timrichpt]

Turbo Tax says to enter the code from the 1099-R which, in my case is a ‘7’ – normal distribution.

My father passed so I would think ‘4 - death’ would be the correct code.

I agree that your answer sounds correct,  however it is counter to the written instructions within the TurboTax software.

[macuser_22]

What instruction?     @Timrichpt This thread was about an inherited account.  Is that your case?

Is your name and SSN on the 1099-R?

Is the IRA/SEP/SIMPLE box checked?

[Timrichpt]

Yes, this is an inherited, non-qualified account for my dad’s military pension.

Yes, my name and Social Security number is on the 1099-R.

No, the SIMPLE/ SEP IRA box is not checked.

[Timrichpt]

I’ll see if I can screenshot the example. Thanks for your help.

[macuser_22]

You are correct.  If it is inherited (and you name and SSN indicated that the trustee of the account recognizes you as the beneficiary) then a code 7 is improper.  It should be a code 4.   A code 7 implies that it is "your" account, not your fathers.

It should also have your fathers name on the 1099-R with you as beneficiary.   Inherited retirement accounts must remain in the name of the deceased.

Contact the payer for a corrected 1099-R.

[HEFEWEIZEN]

Why does turbo tax ask if the person was born before or after 1952

[DawnC]

If the box 7 code on your 1099-R is 4D, the question should not appear; we are working to update the 1099-R interview.   In the meantime, when asked when the decedent was born, answer they were born AFTER January 1, 1952, whether true or not.   @HEFEWEIZEN