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New Member

Where do I show income for an inherited IRA

7 Replies
Expert Alumni

Where do I show income for an inherited IRA

You will be receiving form 1099-R and it needs to be reported as such; please be sure to enter the form information into Turbo Tax exactly as it appears and answer the follow up questions. The tax treatment of the inherited IRA depends on whether it was inherited from a spouse or a non-spouse.

1.       Federal Taxes

2.       Wages and Income

3.       Select Jump to Full list

4.        Scroll down to Retirement Plans and Social Security

5.       Select IRA, 401(k), Pension Plans (1099-R)

NOTE:  The tax treatment of an inherited IRA depends on whether it was inherited from a spouse or a non-spouse.

1.  Inherited from a spouse.

If you inherited a traditional IRA from your spouse, there are three choices:

1. You can treat it as your Own IRA by designating yourself as the account owner.

2. Treat is as your own by rolling it over into your IRA, or to the extent it is taxable to a qualified employer plan.

3. Treat yourself as a beneficiary rather than treating the IRA as your own. 

You will be considered to have chosen to treat the IRA as your own if you made contributions to the inherited IRA (your above the line deduction) or you do not take the RMD -required minimum distribution for a year as a beneficiary of the IRA.

2.  Inherited from a non-spouse.

If you inherited the IRA form a non-spouse, you cannot treat it as your own.  It means you cannot make any contribution, you cannot rollover any amounts into or out of the IRA, other than trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary.  You also must begin receiving distributions from the IRA under the rules for distributions that apply to beneficiaries.

If you received a distribution from an inherited IRA, it is added to your income and taxed accordingly. You will be receiving a Form 1099-R indicating your distribution as a “death distribution” – code 4 in box 7 will be applied.

Please enter this form in the Wages and Income section, as you will be asked additional questions about the decedent. For example, if the decedent made any nondeductible contributions. Why is this important? Well, nondeductible contributions are treated as return of investment and are not taxable; it may be beneficial for you to find out (often your plan administrator, broker or banker has this information or form 8606 from prior years' tax return should indicate that information ).  You will also be asked if the original owner of the IRA passed away after he/she was 70 ½, did he/she take required Minimum Distribution (RMD) in the year of death. Again, your plan administrator should know and you should as well…if the RMD was not taken, a 50% penalty on not distributed amount may be applied.

New Member

Where do I show income for an inherited IRA

My mom passed away in 2019. Prior to her death, she took her 2019 RMD.   I received her IRA in 2019.


No RMD is due for 2019.


How do I report this in TurboTax?   


How do I answer the question about the distribution:

1) I received all of the RMD for 2019

2) I did not receive the RMD for 2019

3) I was not required to take the RMD for 2019


The RMD was paid prior to the distribution to me in the year of death.  



New Member

Where do I show income for an inherited IRA

Adding onto my question -


Given this fact pattern, how do I answer the question:

Was this withdrawal and RMD?

1) Yes, some or all of this withdrawal was an RMD

2) No, none of this withdrawal was an RMD. (This is not common.)


All of the distribution of her IRA to me was after my mom took her RMD in the year of her death.  All events- RMD, death, distribution, took place in 2019. 







New Member

Where do I show income for an inherited IRA

I inherited an IRA CD from my spouse who passed away 4 July 2019.  I've entered the 1099-R into Turobotax.  I indicate that the ira was inherited and put into my individual IRA.  Two problems result.  First in line 4a the entry "ROLLOVER" in entered with a taxable amount of zero.  I believe some portion should be taxable.  The taxable portion would be the total RMD except that there is an associated 8606 from prior years because the IRA was established from after tax dollars.  I see no way to link that 8606 to reduce the taxable portion of the RMD. 

Level 15

Where do I show income for an inherited IRA

TurboTax assumes that a code 4 Form 1099-R reporting a distribution to a spouse beneficiary was either all rolled over or none was rolled over.  You'll need to split the Form 1099-R into two, one for the portion rolled over and the other for the portion that was RMD and not rolled over.


Complicating matters is the issue of the after-tax basis in nondeductible traditional IRA contributions that your spouse had.  TurboTax requires you to separately calculate the taxable and nontaxable amounts of a code 4 distribution when there is basis, then just enter the taxable amount.  The calculation can be done on a Form 8606 separate from the ones for owned IRAs, marked to indicate that it is for the distribution from an inherited IRA, then include it with your mailed tax return, or just include the same calculation on a separate explanation statement that you include with your mailed tax return.  Whatever basis remains after determining the taxable amount of the RMD distribution transferred to your own IRA along with the rollover and you'll need to enter that as an adjustment to your own basis.

Returning Member

Where do I show income for an inherited IRA

Why are distributions reported on a 1099-R Box7 Code 4 with the IRA box checked showing on a 1040 on line 4c (Pensions, and annuities) instead of 4a (IRA Distributions)?

New Member

Where do I show income for an inherited IRA

Sorry.  This was not the question AT ALL.  I spoke to four very nice and completely unhelpful support people and finally figured out a work around for the ACTUAL problem which I had explained to all four.

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