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Level 1
June 6, 2019
Solved

The metlife 1099-r is a in heritance does that make a differance

  • June 6, 2019
  • 1 reply
  • 17 views
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Best answer by Howard1948

NO, it makes no difference.  If this was for a deferred retirement plan or an annuity, the distribution to you will most likely be taxable, either all or in part.  The trustee should indicate in Boxes 1 and 2 the entire distribution and, if only partially taxable, the taxable part.  Be sure that the code in Box 7 is a "4", meaning the distribution is due to the death of the account owner.  This will prevent the IRS from asserting that an early distribution penalty should apply.

1 reply

Level 7
June 6, 2019

NO, it makes no difference.  If this was for a deferred retirement plan or an annuity, the distribution to you will most likely be taxable, either all or in part.  The trustee should indicate in Boxes 1 and 2 the entire distribution and, if only partially taxable, the taxable part.  Be sure that the code in Box 7 is a "4", meaning the distribution is due to the death of the account owner.  This will prevent the IRS from asserting that an early distribution penalty should apply.