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Level 2
posted Mar 6, 2025 7:13:03 PM

Inherited IRA Distribution

My 19 year old daughter inherited her father’s traditional and Roth IRAs when she was 14 years old.  Beginning in 2023,  she is taking a distribution from both the traditional and Roth IRA which is then being deposited into a mutual funds account.  When filing her income tax return, what option should she choose in TurboTax for “where is this distribution from?”

0 4 2301
4 Replies
Level 2
Mar 6, 2025 7:29:24 PM

Which option applies to my daughter’s situation?

Expert Alumni
Mar 7, 2025 12:37:17 PM

If your daughter received a 1099-R from an inherited Roth and traditional IRA combined on one form, there should be a Distribution Amount in Box 1 and a Taxable Amount in Box 2a.

 

Her 1099-R may also have Code 4D in Box 7.

 

If her father not was a US Government or New York state employee, 'None of the above' would be the appropriate choice. 

 

Here's more detailed info on an Inherited IRA.

 

@cvtd 

Level 2
Mar 8, 2025 3:27:50 AM

Thank you.  This is very helpful!

Level 15
Mar 8, 2025 5:15:10 AM

Code D only applies to distributions from nonqualified plans.  Distributions from traditional and Roth IRAs are from qualified plans and cannot have code D in box 7.  A Form 1099-R reporting distributions from an inherited traditional IRA will have only code 4 in box 7 with the IRA/SEP/SIMPLE box marked and a Form 1099-R reporting distributions from an inherited Roth IRA will generally have code T in box 7 but could have code Q instead if the account has been open for at least 5 years.