topic Re: 1099-R in Get your taxes done using TurboTax

1099-R

mg055 — Tue, 07 Apr 2020 18:28:00 GMT

My mom passed away in 2018 and my brother and I each inherited 50% of her traditional IRA. We each took the lump sum option in 2019 as the IRA didn’t have a lot of money in it, knowing we would have to pay taxes on the money. When doing our taxes, the turbotax program is asking if this withdrawal was a “Required Minimum Distribution ” and I don’t know the answer. The options to answer are:

*Yes (All or part of the withdrawal is an RMD) or

*No (It is not an RMD) (Not a common answer)

Since it says no is not a common answer, my tendency would be to answer yes, but no seems like the right answer since I took a lump cash sum.

Re: 1099-R

HelenC12 — Tue, 07 Apr 2020 18:50:09 GMT

I'm so sorry for you loss.

Answer, no, this is not a Required Minimum Distribution (RMD) for you.

RMD's would have pertained to your father, when he was filing his income tax return. The IRS requires people who have retirement funds to take RMD's when they reach the age of 70½ on the date that is 6 calendar months after their 70th birthday.

Re: 1099-R

macuser_22 — Tue, 07 Apr 2020 18:55:58 GMT

If your mother was age 70 1/2 or older then the IRA distribution is a RMD. Just answer yes it was all a RMD since you closed the account.

Beneficiaries of IRA'a are require to take the RMD if the owner of the account was, however determining the RMD amount is not necessary unless less than the RMD was taken. Closing the account guarantees that the RMD was satisfied.