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Inherited IRA; MRD

In 2022 my wife inherited part of her Mother's IRA which was converted in an Inherited IRA.  An MRD was taken in 2022.  In 2023, she liquidated the entire Inherited IRA, and had taxes withheld for bot Fed and State.  The 1099-R we received for the Total Distribution  had a distribution code of "4", or Death. 

 

Turbo Tax is saying my wife needed to take a MRD from this Inherited IRA for 2023, even though she is only 70 years old.  Her adviser says she needed to take an MRD in 2022 (which she did), but an MRD is not required for 2023.  If I check that part of the total distribution was an MRD, it wants to know how much of the total distribution was the MRD.  How do I get around this "Catch 22"?  Should I just check the all if it was an MRD?  If you would prefer to talk, please call me at [phone number removed].  Thank you for  your assistance.

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1 Reply
MinhT1
Expert Alumni

Inherited IRA; MRD

You can answer that all the distribution is RMD and the RMD is satisfied. The question in TurboTax is to make sure that the RMD requirement is satisfied. Your answer isn't reported on your tax return.

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