topic I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place? in Retirement tax questions

I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

gailmowat — Tue, 04 Jun 2019 01:11:26 GMT

I did not withdraw from my own account.

I'm pretty sure you're in the right place. It sounds lik...

DDollar — Tue, 04 Jun 2019 01:11:28 GMT

I'm pretty sure you're in the right place. It sounds like you were the (or one of) beneficiary of you Father's 401(k). A Form 1099-R is for a distribution of any sort from a "qualified" (retirement) account. The code in Box 7 of the 1099-R should be a 4 -Death. This indicates there is no early withdrawal, but since it was a 401(k) it will be taxable. Just enter it in TurboTax and the program will determine how much is taxable.

Re: I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

Timrichpt — Sun, 19 Apr 2020 00:36:06 GMT

Turbo Tax says to enter the code from the 1099-R which, in my case is a ‘7’ – normal distribution.

My father passed so I would think ‘4 - death’ would be the correct code.

I agree that your answer sounds correct, however it is counter to the written instructions within the TurboTax software.

Re: I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

macuser_22 — Sun, 19 Apr 2020 00:34:06 GMT

What instruction? @Timrichpt This thread was about an inherited account. Is that your case?

Is your name and SSN on the 1099-R?

Is the IRA/SEP/SIMPLE box checked?

Re: I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

Timrichpt — Sun, 19 Apr 2020 03:46:00 GMT

Yes, this is an inherited, non-qualified account for my dad’s military pension.

Yes, my name and Social Security number is on the 1099-R.

No, the SIMPLE/ SEP IRA box is not checked.

Re: I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

Timrichpt — Sun, 19 Apr 2020 03:46:47 GMT

I’ll see if I can screenshot the example. Thanks for your help.

Re: I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

macuser_22 — Sun, 19 Apr 2020 03:57:59 GMT

You are correct. If it is inherited (and you name and SSN indicated that the trustee of the account recognizes you as the beneficiary) then a code 7 is improper. It should be a code 4. A code 7 implies that it is "your" account, not your fathers.

It should also have your fathers name on the 1099-R with you as beneficiary. Inherited retirement accounts must remain in the name of the deceased.

Contact the payer for a corrected 1099-R.

Re: I'm pretty sure you're in the right place. It sounds lik...

HEFEWEIZEN — Tue, 11 Mar 2025 03:42:30 GMT

Why does turbo tax ask if the person was born before or after 1952

Re: I'm pretty sure you're in the right place. It sounds lik...

DawnC — Tue, 11 Mar 2025 03:56:58 GMT

If the box 7 code on your 1099-R is 4D, the question should not appear; we are working to update the 1099-R interview. In the meantime, when asked when the decedent was born, answer they were born AFTER January 1, 1952, whether true or not. @HEFEWEIZEN