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Level 2
posted Mar 21, 2022 12:46:21 PM

What type of retirement income is the RMD of my inherited IRA? The state of PA wants to know. I am under 59 1/2 and the deceased was over 72 years old.

TT gives several options that I am considering: I'm eligible

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1 Best answer
Expert Alumni
Mar 21, 2022 1:29:07 PM

Assuming the 1099-R has a Code 4 distribution code in Box 7, you can select Traditional or Roth IRA: I'm under 59.5 for What kind of retirement income do you have from Pennsylvania?

 

The PA instructions state on page 12 that distributions from an IRA are not taxable if paid to a designated beneficiary.

 

TurboTax will automatically recognize it is a beneficiary distribution exempt from tax in the state of PA and will tell you on the next screen This is a distribution due to death and is not taxable for PA purposes. You can leave the basis field blank. 

2 Replies
Expert Alumni
Mar 21, 2022 1:29:07 PM

Assuming the 1099-R has a Code 4 distribution code in Box 7, you can select Traditional or Roth IRA: I'm under 59.5 for What kind of retirement income do you have from Pennsylvania?

 

The PA instructions state on page 12 that distributions from an IRA are not taxable if paid to a designated beneficiary.

 

TurboTax will automatically recognize it is a beneficiary distribution exempt from tax in the state of PA and will tell you on the next screen This is a distribution due to death and is not taxable for PA purposes. You can leave the basis field blank. 

Level 2
Mar 21, 2022 2:06:55 PM

Thanks for clarifying!