topic citation deleted in Retirement tax questions

Received a 1099R for an IRA I inherited and transfered to an inherited IRA. Box 2 and 2a both have the total amount? Should 2a have anything other than 0?

guitarbruce — Thu, 06 Jun 2019 10:13:20 GMT

I started an inherited IRA with the proceeds of the original IRA from my Mother.

Entering the 1099R as written will cause me to pay taxes on the total (as income) as well as when I take RMDs. This can't be correct.

what is your Box 7 distribution code ?

fanfare — Thu, 06 Jun 2019 10:13:21 GMT

what is your Box 7 distribution code ?

citation deleted

SweetieJean — Thu, 06 Jun 2019 10:13:24 GMT

citation deleted

SweetieJean, there are MANY inaccuracies and errors in th...

dmertz — Thu, 06 Jun 2019 10:13:25 GMT

SweetieJean, there are MANY inaccuracies and errors in the reference above.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary">https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary</a>

you can't start an inherited IRA, only preserve it. If yo...

fanfare — Thu, 06 Jun 2019 10:13:29 GMT

you can't start an inherited IRA, only preserve it. If you cashed out your mom's IRA, it is taxable income.

Well, therein lies the problem. The bank that held the IR...

guitarbruce — Thu, 06 Jun 2019 10:13:30 GMT

Well, therein lies the problem. The bank that held the IRA was told I was transferring it to an Inherited IRA (which I now have) and sent me a check. I took the check directly to the financial adviser to start the new IRA. The IRA is now in effect entitled, IRA FBO (my name), B/O (my mother's name) Deceased.

Your IRA is titled correctly ! you will have to write an...

fanfare — Thu, 06 Jun 2019 10:13:32 GMT

Your IRA is titled correctly !
you will have to write an explanation letter to attach to your tax return explaining what happened. Include dates and amounts.
Form 1040 Line 15a should be amount, and Line 15b should be zero.

you could also ask the bank that held the IRA to issue a...

fanfare — Thu, 06 Jun 2019 10:13:33 GMT

you could also ask the bank that held the IRA to issue a corrected 1099-R with a distribution amount of zero, but they may not be willing to do that.

in the future if you want to move an inherited IRA, use a...

fanfare — Thu, 06 Jun 2019 10:13:35 GMT

in the future if you want to move an inherited IRA, use a trustee-to-trustee transfer.

Thank you for your response. Attaching a letter would req...

guitarbruce — Thu, 06 Jun 2019 10:13:36 GMT

Thank you for your response. Attaching a letter would require not using TurboTax for online filing. Is that your suggestion? For confirmation, Form 1040 Line 15a should be the total amount of the IRA and Line 15b would be zero? Would that be an overide of the TurboTax software?

Use Code G instead of code 4 and taxable amount zero. You...

fanfare — Thu, 06 Jun 2019 10:13:38 GMT

Use Code G instead of code 4 and taxable amount zero. You will still have to mail on paper if using TurboTax online.

If you leave box 2a blank and click on the "taxable amoun...

Critter — Thu, 06 Jun 2019 10:13:40 GMT

If you leave box 2a blank and click on the "taxable amount not determined" you will get the option to indicate it was rolled over and you will be able to efile. But keep good records so when the IRS notice comes around you will be ready for it if you can't get the trustee to correct the 1099-R.

Isn't there an interview question re: "Was any portion ro...

Rainman12 — Thu, 06 Jun 2019 10:13:41 GMT

Isn't there an interview question re: "Was any portion rolled over?", which would allow the 1099R to be entered as printed?

Your problem is Code 4 which is not a Rollover. That is w...

fanfare — Thu, 06 Jun 2019 10:13:43 GMT

Your problem is Code 4 which is not a Rollover. That is why the explanation will be necessary, If you attach it up front, IRS will probably not be bothering you later.

A written explanation won't help. A distribution paid to...

dmertz — Thu, 06 Jun 2019 10:13:43 GMT

A written explanation won't help. A distribution paid to a non-spouse beneficiary, reported with code 4, is not permitted to be rolled over. TurboTax won't ask the question under these circumstances.

Code G only applies to rollovers to or from a qualified retirement plan like a 401(k).

Was the check that you received and subsequently provided to the new inherited IRA custodian made out to you or was it made out to the receiving IRA?

Ohh ... dmertz is correct ... it had to be a trustee to t...

Critter — Thu, 06 Jun 2019 10:13:45 GMT

Ohh ... dmertz is correct ... it had to be a trustee to trustee transfer or the check had to be in the name of the new account for the transfer to be recognized.

A trustee-to-trustee transfer is not a rollover. No roll...

dmertz — Thu, 06 Jun 2019 10:13:45 GMT

A trustee-to-trustee transfer is not a rollover. No rollover is permitted.

how did the account get titled correctly then?

fanfare — Thu, 06 Jun 2019 10:13:47 GMT

how did the account get titled correctly then?

do not put any amount on Line 15. Still file with an expl...

fanfare — Thu, 06 Jun 2019 10:13:48 GMT

do not put any amount on Line 15. Still file with an explanation.