Turbo tax Type of account- IRA should not be selected unless this account is an IRA.

[dcl766]

This is my first year taking an RMD on my inherited IRA  from my dad.

TurboTax is not allowing me to check the box for IRA in the section. When I go ahead and check “other”, it lets me go through. Apparently it was not checked on the form 1099R to begin with, or at least that’s what I’m understanding.

Does this sound right? is it not considered an IRA since it is an inherited IRA?

Check This Entry

Form 1099-R (FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO.): Type of account

• IRA should not be selected unless this account is an IRA.

• Type of account - IRA

^

A

B

C

D

E

RMD Excess Accumulation Worksheet

Required RMD amount

Amount distributed in 2024

Did you withdraw the remaining RMD during the correction window?

Type of account

IRA

QuickZoom to complete Form 5329

Taxpayer:

21,200.

21,200.

Yes

403(b)

No

Other

Spouse:

Qualified Disaster Distribution Smart Worksheet

Continue

[dmertz]

If Fidelity did not mark the IRA/SEP/SIMPLE box on the Form 1099-R, the form is indicating that the distribution is not from a traditional IRA (inherited or not), and is instead from some other kind of retirement account.

[dcl766]

OK, thanks.

It was from my dad‘s 401k account from his former employer.

When we all (siblings too) received the money, we were told it was an inherited IRA, and that we had to take the required minimum distribution since he had not taken it yet for the year that he died.

I could be wrong though, what do I know. Like I say, if I check the box for other it lets me go through fine.🤷

[dmertz]

If the distribution was made directly from the 401(k), it's a distribution from an inherited 401(k), which seems to be the case here.  If your share of the inherited 401(k) had been moved an inherited IRA by direct rollover, you would have received a Form 1099-R with codes 4 and G in box 7. 

Because any amount of your dad's year-of-death RMD that had not been completed was not eligible for rollover to an inherited IRA, it was required to be distributed to you from the 401(k), which appears to be what was done.