topic 1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement. in Get your taxes done using TurboTax

1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement.

wlh381 — Fri, 21 Feb 2025 22:51:42 GMT

I am very confused on how to get this entered accurately into the software. It was for unused funds in a prepaid funeral plan. Turbo tax is treating it like IRA/Retirement money. What am I doing wrong? Is there a minimum $ to reporting this?

Re: 1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement.

BillM223 — Fri, 21 Feb 2025 23:05:42 GMT

I am curious...what was the distribution code in box 7? And was the box for an IRA checked?

also, who prepaid the plan? You or someone else?

Re: 1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement.

wlh381 — Fri, 21 Feb 2025 23:20:34 GMT

Thanks for your interest.... Box 7 = 4 and the box is not checked for IRA/SEP/Simple. In looking at the software it appears that the "form for 1099-R" not the wizard prompts has many more questions to respond to but I don't know how to get at the form that the turbo tax wizard is filling in.

Re: 1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement.

wlh381 — Fri, 21 Feb 2025 23:22:05 GMT

The plan was paid by someone else.

Re: 1099-R received as a beneficiary of unused funds from a prepaid funeral arrangement.

dmertz — Sat, 22 Feb 2025 00:51:08 GMT

Lines 5a/5b of Form 1040 includes distributions from insurance plans and nonqualified annuities, so that's where this needs to appear by entering the Form 1099-R into TurboTax. If the taxable amount on line 2a is zero, it won't have any tax consequences because there would be nothing to include on Form 1040 line 5b.