1099R Inherited IRA, type of IRA checkbox section

[mogers]

Trying to determine which box to check, or if it even matters.  My wife has an inherited traditional IRA from her sister that has been distributing RMD's for years ever since the inheritance.   For this beneficiary 1099R form, in the section for Inherited Type of IRA, I have always checked the box > "Spouse and not treat as recipient's own" -  assuming they meant the IRA belongs to my spouse - which it does as she is the sole beneficiary.  But do they actually mean it was inherited from a spouse?  Should I check the next box down that says > "Someone other than a spouse" ?  Does it even matter, it doesn't change any calculations.

[MaryK4 · Accepted solution]

Yes, the question of who you inherited the IRA from is very important, as the rules for distributions are different.  You will want to check to make sure that you made the correct withdrawals and correct if necessary.  Because she inherited it from her sister, she is a non-spouse beneficiary. You should check "Someone other than a spouse."

If you check "Spouse," the software may not trigger the correct RMD or could incorrectly allow you to treat it as a personal IRA (which is not correct).

If the sister passed before 2020, your wife can continue taking RMDs based on her life expectancy for as long as the account lasts.  In most cases, the entire account must be emptied by the end of the 10th year following the death if the sister passed in 2020 or later.

See Inherited IRA Guide: What It is, How It Works, & Tax Rules