Beneficiary IRA(Spouse) - Owner of This 1099-R question

[byag7119]

Hi

My husband passed away last year,   I had to do my husband's last RMD for 2023,  and I received the Tax Form with the Box#7 as #4(death) in my name as a custodian for his account.

On Turbotax's "Verify the Owner of This 1099-R" question at the beginning, I select "my husband", correct?

It seems, when I select "my name", TT thinks I am doing RMD for myself as a retiree, which I'm not.

Thank you

[Mike9241]

Whoever's name was on the account when the RMD was taken is the owner.

[VolvoGirl]

That's ok.  It doesn't matter which name is the RMD.   It is still the RMD and was taken.  Say yes it was all RMD.  My husband died last  year too and he was taking the RMD (I am younger).

After I entered the 1099R using my name, it asked When my husband was born.  I picked the first one, This person was born before Jan 1, 1950.  Then it asked Was this withdrawal an RMD?  I picked Yes some or all was RMD.   For 401K you have to take the RMD and it's based on another table for % and years.  

Well that was for his 401K.  His Vanguard IRA was put into my IRA account and is now mine.  I guess I don't have to take any RMD until I turn the right age.  But I took it out just in case.  I didn't get the same questions for a IRA as the 401K.  Are you sure it is a IRA Account and not a 401K?    The 401K RMD was code 4 and the IRA was just code 7.  

[roset]

Thank you.

Thank you.

Yes, it was my husband's ordinary TRA IRA, not 401K.

Right now, I am just simulating on TT 2022 version because I am not sure if I should use a CPA or TT yet....

A CPA I have talked to said I could do it on TT myself... 

#1- So, even if it was for his last RMD, I select myself as "Owner of this 1099-R", correct?

#2 - Then, TT asks "Where is this distribution From?" and Below it,  TT  has an answer "XXXXX"(Financial institution name where our IRAs have been kept).

And then also asks [the "source" of this withdrawal(distribution)] with 3 bullet selections :

1. Pension rollover account, 2. "Other" IRA distribution  3. Neither 1 or 2

What should I answer? "Neither"?  because this is from XXXXX.

*TT help says my State has special handling of IRA if the IRA distribution was from State government/millitary or a private employer - which is NO for my husband). 

So I am assuming I would answer "NEITHER of 1 or 2"...

and then asks [to enter  any "other" State information] , according to boxes for State on 1099-R....

Thanks

[dmertz]

TurboTax's "Verify the Owner of This 1099-R" question is a badly worded question, one of many in TurboTax.  It's actually just asking if you are the recipient of this distribution (which you are in this case).  The question is not asking who owned the retirement account.

As beneficiary, the year-of-death RMD became your responsibility to complete upon your husband's death.  TurboTax makes no assumptions about whose RMD this originally was, it doesn't really matter.  TurboTax just needs to know how much of the distribution was ineligible for rollover because it was a required distribution.

The distribution asking about a government plan seems to imply that the distribution was not a distribution from an IRA but was instead a distribution from an employer plan.  If the distribution was from a traditional IRA the Form 1099-R would have the IRA/SEP/SIMPLE box marked and there would be no reason for TurboTax to ask this question.

[roset]

Thank you dmerz,
Yes, IRA/SEP/SIMPLE checkbox is checked on the tax form.

So, my answer to the TT' s question "Where is this distribution From?",

since it is from not a pension rollover or anything but just individual account at Vanguard ,

TT has automatically checked "No2. Other IRA distribution",  I just leave it at that, right?

Very confusing, TT doesn't give explanations for "Other distribution" option...

[RobertB4444]

'Other Distribution' is correct because this is coded as a death benefit for you (that's what the 4 is for) and not as a regular distribution.

Sorry for your loss.

@roset 

[VolvoGirl]

@RobertB4444   Can you reply to this one?  We're having trouble explaining it to the user.

https://ttlc.intuit.com/community/retirement/discussion/i-rolled-over-from-a-401k-to-an-ira-i-don-t-... 

[byag7119]

Thank you everyone.

So regarding 1099-R,

beside taking my husband's last RMD from Vanguard TRA IRA,

I have another type of 1099-R which is from my husband's State Retirement Pension System, which was not IRA.

I have his for a few months payment, and mine afterwards as a survivor benefit that I started getting monthly.

After I completed entering  the numbers on TT, there're a few more questions.

Then  TT says 

[ Tell us more about THIS retirement plan distribution.

  XXX(me) needed to take an RMD from any qualified employer plans or traditional IRAx  for 2023.]

and the three answers to select from are...

XXX(me) received all the RMD for 2023

XXX(me) did not receive all....

XXX(me) was not required to take an RMD for 2023

I'm not sure which one TT is referring to and why it says "I" needed to take an RMD.

Which Should I answer

#1  since I received RMD from Vanguard for my late husband?  or

# 3  since RMD was for my husband even though Ithe 1099-R belongs to me ..?

Thank you

[dmertz]

#1 and #3 produce the same result under all circumstances.   #2 takes you on a different path to report a missed RMD.  However, because it became your responsibility to complete your husband's RMD upon his death, #1 is the appropriate answer in this case.

[roset]

I see.  Thank you dmertz for your quick response!