My mother in-law elected the spousal continuation option of her deceased spouse's IRA, and requested that the insurance company calculate the RMD. This was done, and she received a 1099 R that was recorded in TurboTax. TurboTax shows the sum of all distributions, and then deducts the entire amount of this distribution from taxable income, as inherited and treated as own. In reviewing the 2015 return, the distribution was both larger and treated as taxable income. I will verify the accuracy of the size of the distribution with the provider, but it does not seem right that this distribution would be taxable on a joint return while the spouse was alive, but not taxable on the return in the year of his death.
... View more