Inherited or not?

[danjreesemail]

TurboTax is asking the question "Did Andrea inherit this TD AMERITRADE CLEARING INC IRA"? She inherited the IRA from her father when he died, but it was not in a TD AMERITRADE account at the time -- it was transferred into this account. So is the correct answer "Yes" or "No"?

[dmertz · Accepted solution]

Yes, this is an inherited account.  Transferring the account from one financial institution to another cannot change that.  Any distribution from this account should have code 4 in box 7 (unless it's a Roth IRA).

(The current account should be titled as Father, deceased, FBO Daughter, beneficiary, or something like that.  If it's titled in Daughter's name only, that's a problem.)