Do I need to include a 1099-R for a ROTH IRA that was received upon the death of my father?

Forum|Forum|2 years ago
February 26, 2024
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My wife's father died and the ROTH IRA was inherited as his accounts were distributed. We received a 1099-R for this transaction.

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Best answer by DianeW777

Yes, you want to enter the Form 1099-R on your return, however the codes in Box 7 will determine the taxability, if any, for your tax return.

Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.
- IRS Retirement Topics Beneficiary
Where do I enter a 1099-R?

DianeW777Answer

Yes, you want to enter the Form 1099-R on your return, however the codes in Box 7 will determine the taxability, if any, for your tax return.

Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.
- IRS Retirement Topics Beneficiary
Where do I enter a 1099-R?

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Opus 17

Employee

If his IRA was cashed out and distributed, and you got a 1099-R in your name, then that is taxable income to you. (Because it was inherited, it is not subject to the 10% penalty if you are under age 59-1/2. But it is taxable income since no one paid tax on the money when it was contributed, so all the taxes are paid when it is withdrawn or distributed.)