We recieved a 1099r from my mother who died . as a benificary we recieved this money. not sure how to claim or where to claim on my taxes .

[lesdame]

this is not from my retirement but from my deceased mother.

[KenH1 · Accepted solution]

Assuming that the 1099-R is in your name, report it this way:

Click Federal Taxes (top menu)

Click Wages & Income (just below top menu)

Scroll down to Retirement Plans and Social Security and click Show More (if necessary)

Click Start next to IRA, 401(k), Pension Plan Withdrawals (1099-R)

Enter your 1099-R exactly as printed, paying special attention the the distribution code in Box 7 and the "IRA/SEP/SIMPLE" box.

It sounds like you inherited some kind of tax-deferred retirement account. 

[shafferjl49]

The 1099-R was received from an insurance company handling a funeral/burial account for the mother.  The net proceeds were returned to the daughter in her name.  After checking that box 7 represents a "death" turbo tax makes the distinction that the daughter passed away and that due to age there should have been an RMD.  

This distribution is for the mother not the daughter (my wife).  How is this handled?  Should the insurance company have distributed the proceeds in the mother's name?  I see no reason that this should be taxed by us as the money is going into the estate.  It is not inherited by us.

[GeorgeM777]

Based on what you have stated, it appears as if the daughter received the retirement account proceeds.  Ordinarily, in cases where an individual inherits a retirement account, a 1099-R is issued to the beneficiary, and the 1099-R is entered into TurboTax in the Retirement Plans and Social Security subsection.  Generally, after the 1099-R is entered into TurboTax, the next issue to determine is the taxability of the inherited retirement proceeds.  When determining the correct amount of tax to apply to the retirement proceeds, the distribution code (Box 7 on the 1099-R) is very important.  That distribution code will trigger certain types of questions in TurboTax the answers to which will determine the tax outcome.

In your case, it appears as is if the retirement proceeds should have been paid into the estate rather than the daughter receiving them outright.  In that case, perhaps the best option is to have the insurance company issue an amended 1099-R.  The Estate Administrator/Executor can then determine how the retirement proceeds need to be distributed.

If you decide to follow-up with additional information, include information regarding the type of retirement account at issue, e.g., Roth IRA, Traditional IRA, pension, etc.  

@shafferjl49