Received a inherited annuity in cash as reflected on 1099-R. But Turbo Tax insists it's an inherited IRA and asks about RMDs. How to treat the annuity in Turbo Tax?

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1 Best answer

Level 15

Jun 1, 2019 10:40:38 AM

OK, you will enter the 1099R exactly as received.

Due to inherited, which it is, you will answer, "yes" I took my RMD, (as you are collecting an annuity) and then answer, "Yes" all is RMD, and that is all you need to do.

Inherited IRA's must-have certain amounts taken each year, and with the annuity, you are doing that.

To enter pension and annuity Payments (1099-R)

Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Level 15

Jun 1, 2019 10:40:36 AM

What codes are in Box 7? Is it inherited?

New Member

Jun 1, 2019 10:40:37 AM

code 4 and inherited from deceased parent

Level 15

Jun 1, 2019 10:40:38 AM

OK, you will enter the 1099R exactly as received.

Due to inherited, which it is, you will answer, "yes" I took my RMD, (as you are collecting an annuity) and then answer, "Yes" all is RMD, and that is all you need to do.

Inherited IRA's must-have certain amounts taken each year, and with the annuity, you are doing that.

To enter pension and annuity Payments (1099-R)

Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

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Received a inherited annuity in cash as reflected on 1099-R. But Turbo Tax insists it's an inherited IRA and asks about RMDs. How to treat the annuity in Turbo Tax?