My mother passed away in 2023. She was, and I am, Arizona residents.
She had a 403(b) account through her former employer in NJ . I inherited a portion of this account. My 1099-R correctly shows it as a direct rollover (G4) (it was rolled into an Inherited IRA). However, it is being added to my taxable income. Why? I thought as a direct rollover it would not be taxable?
Also, she took an RMD from this account in 2023. TT just asks if part of my distribution was an RMD; it doesn't ask whether the 2023 RMD was taken by the original owner. How do I answer this?