1099R and Inheritance

[Phil949598]

My brother in law passed away in 2020 and his 401K was distributed to 3 living siblings, there was no will.  We received one 1099R for the full amount but the distributions were made by the executor pre tax.  We made an estimated tax payment in Q4 2020 so the taxes are paid.  I am wondering how to handle the 1099R.  Can i only add in 1/3 of the amount into my 1040?   Are there special forms i need to complete?

[JohnB5677]

This may be complicated.  Please give us some guidance by answering these questions.

• Did the executor issue all three recipients a 1099 R for the full amount? 
• Were the estimated taxes paid by each of the three individuals, or as a lump sum?
• Was there a trust?
• Did the executor give each of you an option for a lump sum, or periodic payments?

[Phil949598]

The executor provided us 1/3 of the amount on the 1099R.  The 1099R is addressed to the Deceased and the Exec.  There was only one 1099R with the full amount shown.  I paid estimated taxes on the 1/3 that I received but can not put the entire amount from the 1099R on my tax return.  The estimated taxes were paid by each individual.  (1/3 each).  The 401K plan would only make a single disbursement for the full amount.  There was not a trust nor will.

[dmertz]

The estate must report the Form 1099-R on an estate income tax return Form 1041 prepared by the executor and issue to you and the the other two estate beneficiaries Schedules K-1 to pass the income through to report on the beneficiaries' individual tax returns.  Whether this passed-through income goes on the beneficiaries' 2020 tax returns or on the beneficiaries' 2021 tax returns depends on the end date of the period covered by the estate tax return and indicated the Schedules K-1.