topic inherited IRAs in Get your taxes done using TurboTax

inherited IRAs

hedgie — Mon, 09 Mar 2026 08:27:32 GMT

I am in the personal income section. I inherited an IRA held at one brokerage, which we transferred as IRA to second brokerage. We did an RMD out of the IRA when at brokerage #2. The program asked if I inherited the IRA from brokerage #1, I said no. Two screens later, it is asking what I did with the money from brokerage #2 (moved it, etc). I didn't move it, it's still there, but that does not seem to be an option in what it is looking for.

Re: inherited IRAs

DianeW777 — Thu, 10 Mar 2022 16:15:49 GMT

That screen is asking if you did anything with the money besides keep it that is reported on the Form 1099-R. You should select that you 'did something else' with the money. TurboTax is making sure it's not a rollover.

Please update here if you need further assistance.

Re: inherited IRAs

dmertz — Fri, 11 Mar 2022 00:02:07 GMT

TurboTax's misleading wording is simply asking if the distribution was from an inherited IRA. TurboTax Product Quality has refused to modify this misleading wording. The wording should really say, "Is this distribution reported by brokerage #1 a distribution from an inherited IRA?"

Are your the surviving spouse of the decedent? (I suspect not because you said "we" transferred the IRA.)

The question being asked by TurboTax implies that you received a Form 1099-R from brokerage #1. If the inherited IRA was trustee-to-trustee transferred, brokerage #1 should not have issued any Form 1099-R for the movement of these funds. The Form 1099-R also implies that there was a distribution that was not eligible to be deposited into another inherited IRA. A distribution and rollover between inherited IRAs is not permitted under the tax code.

If this was a proper trustee-to-trustee transfer with the funds in the original inherited IRA paid directly to the inherited IRA at brokerage #2, not paid to you as an intermediary, you'll need to contact brokerage #1 to obtain a corrected Form 1099-R showing that the amount distributed was $0.

You should have received a Form 1099-R from brokerage #2 for the distribution you took from the inherited IRA at brokerage #2.

(On the other hand, if you are the surviving spouse of the decedent and you rolled a distribution from brokerage #1 over to your own IRA at brokerage #2 and then took the decedent's year-of-death RMD from there, that's still problematic but I won't go into details unless I hear that you are the surviving spouse of the decedent.)