topic Inherited IRA in Retirement tax questions

Inherited IRA

Tim-The-Tax-Man — Tue, 10 Feb 2026 08:52:09 GMT

I received some money from my Mother's IRA when she passed.

The bank with held Fed taxes from the distribution. I have a form "1098, 1099, or 5498".

Where do I enter this information in TurboTax Deluxe?

Is it in the "Income from Form 1099-MISC?

Re: Inherited IRA

dmertz — Thu, 01 Feb 2024 13:04:15 GMT

Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R).

Re: Inherited IRA

Tim-The-Tax-Man — Thu, 01 Feb 2024 14:35:25 GMT

My understanding from the bank when they distributed the funds is that it is not a disbursement.

It was my mother's IRA, but once she passed, it is just cash.

Is that incorrect?

Re: Inherited IRA

CatinaT1 — Thu, 01 Feb 2024 20:09:20 GMT

No. If it was a Traditional IRA, tax has to be paid when it is disbursed, regardless of who it was disbursed to.

Re: Inherited IRA

dmertz — Thu, 01 Feb 2024 20:49:52 GMT

The distribution to you from your mother's IRA is called Income in Respect of a Decedent. As CatinaT1 said, IRD is taxable to the beneficiary in the same manner as it would have been had it been distributed to your mother while she was alive (except for any early-distribution penalty that might have applied to your mother).