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Why am I being taxed on inherited roth ira that was rolled over into a qualified account, entered 1099r info, box7 coded 4g and checked rolled over into an roth ira box?

It is my understanding inherited Roth IRA's rolled over to an inherited Roth IRA are not taxable.

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1 Reply
dmertz
Level 15

Why am I being taxed on inherited roth ira that was rolled over into a qualified account, entered 1099r info, box7 coded 4g and checked rolled over into an roth ira box?

Unless the Form 1099-R is erroneous, the code 4G Form 1099-R indicates that you did not inherit a Roth IRA.  It indicates that the distribution that you rolled over to a Roth IRA was a distribution from a traditional account in the qualified retirement plan, not from any kind of Roth account.  Such a rollover is generally taxable.  The taxable amount will be shown in box 2a and any nontaxable amount will be shown in box 5.

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