CASH OUT OF IRA, DO I PUT WHAT I USED IT FOR

[cderenzi]

I TOOK CASH OUT OF SIMPLE IRA, I AM 77 YEARS OLD AND MY HUSBAND DIED THIS YEAR. WHAT TO PUT SO I DON'T GET MAJOR TAXED. 

[leeloo]

You tell the IRS the exact purpose for which you withdrew it.  In fact, since you did not take an early distribution, you just enter the income and the code on your 1099-R. There are waivers for early distribution penalties, but this is not the case as you are well over the age requirement.  

You don't state whether it is a Traditional or Roth IRA. The code in Box 7 of your 1099 gives you information as to how the distribution is treated.

[Hal_Al]

Q. What to put so I don't get major taxed?

A. Nothing special. Enter the 1099-R, as receved, and follow the TurboTax (TT) interview. 

Q. Do I put what I used it for?

A. No.  That's not relevant, unless you rolled it over to another IRA.  Since you are over age 72, you are required to take a minimum (taxable) distribution (RMD) each year. RMDs cannot be rolled over to another IRA. 

The entire dstribution (most likely) will be taxed. For distributions, a SIMPLE IRA is the same as a Traditional IRA (the rules are different for contributions).  Your age, or widow status, doesn't exempt you from the distribution being taxable. Your age (being over 59-1/2) only exempts you from an early distribution penalty

[fanfare]

For the year in which your husband died, you file status Married filing jointly, just as if he were still living.

@cderenzi 

[Mike9241]

you also have to continue to take RMDs every year. the IRA trustee should inform you of the amount - form 5498. there are penalties for failure to take it