topic Inherited IRA rmd taxable? in Retirement tax questions

Inherited IRA rmd taxable?

Julie202 — Tue, 10 Feb 2026 11:12:38 GMT

My husband died in 2023. Before his IRA was rolled into mine, the RMD was distributed to me. I have received a 1099-R with the RMD amount indicated in Boxes 1 and 2a, Box 2b shows taxable amount not determined, Box 7 shows code 4. When I enter this information in TT, and indicate that it is an inherited IRA, TT tells me the RMD is NOT taxable. Is that really true?

I thought RMDs were always taxable to the extent there is no cost basis.

Re: Inherited IRA rmd taxable?

dmertz — Tue, 20 Feb 2024 14:04:01 GMT

For the portion that was distributed to you and not moved to your own IRA, indicate that you did not put the inherited funds onto your own IRA.

(I assume that the rest of the IRA was moved to your own IRA by nonreportable trustee-to-trustee transfer, but if it was done by distribution and rollover and included on this Form 1099-R, you'll need to split the Form 1099-R into two, one for the portion that was RMD and another for the portion that was rolled over.)

Re: Inherited IRA rmd taxable?

Opus 17 — Tue, 20 Feb 2024 15:40:47 GMT

I assume you got one 1099-R from the trustee that includes both the RMD and a rollover into your own IRA? In that case, the portion that was the RMD was taxable and the portion that was rolled over is not taxable. Turbotax may have trouble with this situation, see what @dmertz has to suggest about how to report it properly in the program.