topic inherited IRA distribution in Retirement tax questions

inherited IRA distribution

hroskes — Mon, 24 Feb 2025 13:50:51 GMT

I inherited a IRA (traditional) from a family friend who passed away in 2024. There were 15 beneficiaries on the account, none of whom were her spouse or children.

My understanding is that in 2024, the beneficiaries, between all of them, were required to take a distribution equal to the amount that the original owner's RMD for 2024. I took about half of her RMD and then called the financial institution, and they told me that the full RMD had been satisfied between me and the other 14 beneficiaries.

I received a 1099-R form and am trying to enter it into TurboTax.

I am getting the following question:

From what you shared earlier, <my name> received $<amount>. If <my name>'s total RMD for 2024 was higher than what <my name> took out, there might be additional taxes to consider.

Could you tell us what the required minimum distribution for <my name>'s account was in 2024?

How should I answer this? If I put the original owner's RMD amount, it's telling me that I didn't withdraw enough and asking me questions about the correction window.

Re: inherited IRA distribution

DianeW777 — Mon, 24 Feb 2025 14:20:27 GMT

Enter the amount of your 1099-R as the required minimum distribution (RMD) for 2024 and that it was the full amount of the RMD. This is true for your tax return and will eliminate any penalty that would not apply to you or the other beneficiaries.

Re: inherited IRA distribution

dmertz — Mon, 24 Feb 2025 16:02:00 GMT

Enter as the required amount only the amount that you actually took out. You were not required to take more than that because others satisfied the remainder of the year-of-death RMD.