Reporting requirement for inherited spousal IRA

3 replies
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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.