1099R Lump Sum from Mothers Death

To qualify for 10-year income averaging (for Lump-Sum Distributions), the following tests must be met:

1. The distribution must be from a tax-qualified retirement plan or annuity, not from an IRA

2. The distribution of the entire plan balance must be made in one taxable year, and no part of the distribution can be rolled over.

3. The plan participant must have been born before January 2, 1936. Beneficiaries can elect income averaging, but only if the participant meets this requirement.

4. The participant must have been in the plan for at least five years before the distribution (does not apply if payment is made to beneficiaries).

5. The plan participant cannot have used the income averaging provision for any previous distribution after 1986.

6. The distribution must be payable:

     (1) on account of the employee's death;

     (2) after the employee reaches age 59 ½;

     (3) on account of a common-law employee's separation from service; or

     (4) after a self-employed individual has become disabled.

If you qualify under the above, then you are good.  Here is an IRS article that provides more details and the link to related articles:  Lump Sum Treatment Options