Inheritance from insurance company and its 1099-R

[stewart6686]

Received an inheritance check from an insurance company in 2022.  I received a 1099-R for this too. I read that inheritance is not taxed as income and to ignore the 1099-R (!), but then I see other posts saying I must report it. Box 7 states 4D on the 1099-R . Box 4 indicates there were some federal taxes taken out already. Most 1099-R questions I see on here are regarding retirement, but this was a lump sum inheritance. What to do?

[DianeW777 · Accepted solution]

Not exactly.  The information you received is not correct.  The 1099-R is taxable to you and you must enter it into your tax return.  It simply means you are not being penalized for taking it before retirement age because you inherited it, as opposed to it being your own plan. 

• Where do I enter my 1099-R?

There are some other items that may not be taxed if inherited, however a retirement distribution is not one of them.