topic Re: 1099R Death Benefit in Other financial discussions

1099R Death Benefit

joan03 — Sun, 09 Feb 2020 19:33:32 GMT

In posting a 1099R Death Benefit Turbo Tax thinks I am the employee. Box #7 has a 7 in it. how do I handle this?

Re: 1099R Death Benefit

macuser_22 — Sun, 09 Feb 2020 19:41:46 GMT

A 1099-R code 7 in box 7 is a normal distribution to the owner of the retirement account.

What do you mean by "death benefit"? Is this supposed to be an inherited distribution to the named benificuary of the account - if so the box 7 code does not indicate that.

Whose name and SSN is on the 1099-R - yours or the deceased?

You need to contact the issuer of the 1099-R for clarification.

Re: 1099R Death Benefit

TXNnNY — Thu, 25 Mar 2021 21:43:53 GMT

no taxable amount entered in box 2a; box 2b has both undetermined tax and total distribution checked; box 7 is marked 4D (death); ira/sep/simple is not checked

this is a death benefit payout to a named beneficiary

should it be taxed?

I went from a tax return of over 5K$ to owing 500

Re: 1099R Death Benefit

macuser_22 — Thu, 25 Mar 2021 21:58:05 GMT

The taxable amount is usually the box 1 amount unless you have a nontaxable basis in the account. The payer should have been able to calculate that.