Is a form 1099-R sent in the name of an estate considered earned income for the estate?

mplsjdoe · Jun 3, 2019 1:34:11 PM

<P>I had to set up an estate account for my deceased uncle because the one of his financial institutions would not send the distribution to me directly. I set up a new estate bank account to deposit the checks into, then closed it about 6 months later. The amount was about $90,000 in the form of a total distribution from his old accounts. The financial institution sent me 2 1099-R forms addressed to his estate. Is this considered earned income for the estate even though it was just inherited money and transferred to the bank and then to me? Do I file a return for his estate using the 1099-R and estate tax forms and then form 706 for me personally having taken the money? <BR /></P>

@Camaro2013 wrote:

I am the Administrator of the Estate and the 1099-R is filed under my TIN number

If the IRA had a named benificuary then the IRA and 1099-R pass outside of the estate directly to the benificuary and are not part of the estate.

If no named benificuary or the named benificuary was the estate itself then the estate reports the 1099-R and distributes the money to the beneficiaries of the estate with K-1 forms and an estate 1041 tax return.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**