1099R distribution code

Forum|Forum|1 year ago
March 6, 2025
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My mother passed a couple years ago and I took a distribution from her 403(b) that was moved into a beneficiary account for me after her death. My understanding is that the 10 yr rule applies and I must withdrawal the full amount in 10 yrs but the distribution code on the 1099R was 1. Should this have been 4? And if so how do I file. I already called the institution and they said they do not issue corrections.

DavidD66

The box 7 code on the Form 1099-R is correct. You took a distribution, as opposed to doing a direct rollover to a beneficiary account. If you put the money in a beneficiary account within 60 days of taking the distribution, you can indicate that you did a rollover. There are a series of questions after you enter the Form 1099-R. Be sure to indicate that rolled over all of the money into an IRA account. This will keep you having to pay income tax and the excise tax penalty for early distribution.

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