Received cashier check from deceased mother's IRA

[Yannie]

My sister and I were the beneficiaries of my deceased mother's IRA (father passed 2 years before my mother).  The bank divided the funds between my sister and I and we each received a cashier check made payable to our own name (we are both over 63 years of age).  I deposited my check into my regular savings account (not an IRA).  The bank did not send me any type of 1099.

Am I suppose to receive some kind of 1099? How do I handle this since the bank is not sending me any 1099?  And how do I report this on my tax return (using Turbo Tax Deluxe)? 

Thank you, I appreciate any help or advice.

[DMarkM1 · Accepted solution]

Yes, any distribution from a retirement account should generate a form 1099R.  If the executor of the estate received the 1099R they would report it on the estate tax return and handle any taxes due there.  Subsequently the amounts you received would not be taxable to you and not need to be reported on your tax return.  

However, if the IRA account servicer sent you the distributions then you and your sister should receive a form 1099R showing your share of the distribution. 

If the distribution was in 2023 then you will get the form next year and report it on your 2023 tax return.  

[Yannie]

Thank you very much for the information.  It was helpful to know that if the estate pays the taxes then I should not report it on my tax return.

I checked and found the estate did receive a 1099R from the IRA account servicer but they only sent one for one half of the IRA amount with distribution code #4.  My sister and I did not receive any 1099R.

I am in contact now with the servicer to find out if they will correct to the full amount or issue another 1099R to the estate for the other half of the funds.  I think they may have an error in how they processed the two payouts: one was listed as "Distribution" and the other was listed as "Transfer Withdrawal" but both were cashier checks made out to each of our names and we each deposited into a regular savings accounts.