Reporting requirement for inherited spousal IRA

Forum|Forum|7 years ago
June 6, 2019
3 replies
36 views

My wife deceased in 2017 and her IRA was rolled into my IRA (I was the sole beneficiary and it was direct transfer from same custodian, Charles Schwab). I did not need to withdraw any money from IRA and I won't need to withdraw for few more years. Do I need to report this to 2017 tax return? Will I get 1099-R?

Help is appreciated.

Thanks,

TurboTax Premier Windows

Critter

Level 15

If this was a direct rollover you may not get a 1099-R in January (ask the broker) but even if you do you will simply enter the form and indicate it was a direct rollover .. it is not a taxable situation.

dmertz

Level 15

A direct transfer of this account should not be reported by the custodian on Form 1099-R as a distribution, nor should it appear on Form 5498 as a rollover contribution, and it will not be reportable on your tax return. If reported by the custodian, the custodian will be improperly indicating that there was a distribution and rollover. Usually this would not be a problem since you could report it on your tax return as a nontaxable distribution and rollover, but given that you are only allowed to roll over one IRA distribution paid to you in a 12-month period, this could jeopardize your ability to do an actual IRA-to-IRA distribution and rollover.

Hal_Al

Level 15

If you get a 1099-R, the TurboTax interview will allow you to treat it as a rollover, on your taxes. If you do not get a 1099-R, you do not need to report it.