Mom died before taking her 2018 RMD.

[moviemike3]

doing my dad's taxes.  mom died before taking her 2018 RMD.  dad cashed out her IRA (which was minimal) - do i enter this as no RMD taken or because he cashed it out the whole thing as beneficiary is that considered the RMD

[MichaelL1]

Did Dad take the distribution in 2018?

 If you are the beneficiary of a deceased IRA owner, you have to begin taking required minimum distributions (RMDs).

[moviemike3]

dad took the entire amount out of mom's IRA in 2018

[MichaelL1 · Accepted solution]

Great then when reporting the 1099R (inherited one) say this is RMD, and all is RMD and All RMD was taken, and then there is nothing else you need to do.

You will be receiving form 1099-R and it needs to be reported as such; please be sure to enter the form information into Turbo Tax exactly as it appears and answer the follow up questions. The tax treatment of the inherited IRA depends on whether it was inherited from a spouse or a non-spouse.

1.       Federal Taxes

2.       Wages and Income

3.       Select Jump to Full list

4.        Scroll down to Retirement Plans and Social Security

5.       Select IRA, 401(k), Pension Plans (1099-R)

NOTE:  The tax treatment of an inherited IRA depends on whether it was inherited from a spouse or a non-spouse.

1.  Inherited from a spouse.

If you inherited a traditional IRA from your spouse, there are three choices:

1. You can treat it as your Own IRA by designating yourself as the account owner.

2. Treat is as your own by rolling it over into your IRA, or to the extent it is taxable to a qualified employer plan.

3. Treat yourself as a beneficiary rather than treating the IRA as your own. 

[moviemike3]

thank you Michael

[MichaelL1]

My pleasure and sorry for your loss.  It is great you are helping Dad.