Received a inherited annuity in cash as reflected on 1099-R. But Turbo Tax insists it's an inherited IRA and asks about RMDs. How to treat the annuity in Turbo Tax?

[MichaelL1]

What codes are in Box 7?  Is it inherited?

[civitas]

code 4 and inherited from deceased parent

[MichaelL1 · Accepted solution]

OK, you will enter the 1099R exactly as received.

Due to inherited, which it is, you will answer, "yes" I took my RMD, (as you are collecting an annuity) and then answer, "Yes" all is RMD, and that is all you need to do.  

Inherited IRA's must-have certain amounts taken each year, and with the annuity, you are doing that. 

 To enter pension and annuity Payments (1099-R)

• Click on Federal Taxes
• Click on Wages and Income
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button