Your Form 1099-R should have a Code 4 in Box 7 indicating that your distribution is a “death distribution”. Enter this form in the Wages and Income section, you will then be asked additional questions about the decedent to properly report the distribution and to not over-pay in tax.
To enter Form 1099-R, follow the instructions below.
If you are using TurboTax Online
- From the Tax Home screen locate the Income section. Scroll down and click on +Add Income.
- Locate the section for Retirement Plans and Social Security. Click add next to IRA, 401(k), Pension Plan Withdrawals (1099-R) (this will add the section to your main screen)
- Go back to the Tax Home screen and under Income, locate the section you just added for the 1099-R. Input the information as shown on your form and answer the questions related to the decedent.
If you are using TurboTax Desktop
- From the main screen locate the Federal Taxes tab, then Wages and Income.
- Locate the section for Retirement Plans and Social Security. Click start next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Input the information as shown on your form and answer the questions related to the decedent.