Filing Trust Form 1041 with 1099 r

Forum|Forum|3 years ago
March 28, 2023
3 replies
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Form 1099 R has Box 1 as Gross Distribution amount. Box 2a is Zero. Reason in Box 7 is 4G (death)

This 1099 R is a Rollover. The gross Distribution was rolled over to the beneficiaries in the Trust. )rooled over as Inherited IRA)

How do I enter this form 1099 R into Turbo Tax for Trust Form 1041?

TurboTax Business Windows

Anonymous_

Level 15

I am going to page @dmertz for this, but I do not believe you have to report this 1099-R at all on the 1041 (unless there was something strange like more than one rollover or the rollover was less than the gross distribution amount)

@dmertz ?

Beckylaw50Author

Level 2

I will look for that person's reply.

But to your question:

No there was only this one Rollover.

The Gross Distribution was then rolled over to Inherited IRA accounts per the terms of the trust - (percentage base to beneficiaries.)

dmertz

Level 15

Correct. IRS Notice 2007-7 permits such a rollover to an inherited IRA for the benefit of the trust and such a rollover is nontaxable, so it doesn't get entered anywhere on Form 1041. The trust can then, as was apparently done in this case, move the trust beneficiaries' respective shares to inherited IRAs for the benefit of the trust beneficiaries by performing nonreportable trustee-to-trustee transfers (not by distribution and rollover). The only rollover was to the trust, not to the trust beneficiaries.