Entering RMD for deceased spouse's IRA

Forum|Forum|1 year ago
March 5, 2025
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My wife who passed away early last year had an IRA. She had not taken the RMD when she died. Fidelity rolled the IRA into a new Beneficiary IRA for me and I then was able to take the RMD. I am having a little trouble figuring out how to answer the questions for the 1099R in Turbotax.

First it asks me to enter the nnumbers from the IRA

I then answer Yes to Did {myName} Inherit the IRA and that was from my spouse.

Did {myName} put the inherited funds into {myName} own IRA account

This is what trips me up. I did put the entire account into a new IRA in my name. If I answer yes, I start getting questions that make it sound like the RMD was placed into an IRA, which is wasn't

You told us that {myName} rolled over the entire $X distribution to another qualified account. This is not correct as the RMD went into a cash account. I went back and changed the previous answer to no, {myName} did not put the money into {myName} own IRA account. It's not clear if the distribution they are talking about is the RMD or the account as a whole.

Or maybe I just should answer No, it was not inherited since the beneficiary IRA is now mine.

DaveF1006

Yes, it can be confusing on how to enter this information in your return. Hopefully this will clear up some of the confusion.

Inherited IRA: Since the IRA was inherited from your spouse and rolled into a Beneficiary IRA, you should answer "Yes" to the question about inheriting the IRA. This ensures TurboTax understands the context of the account.
RMD and Account Rollovers: The confusion seems to stem from the distinction between the RMD (Required Minimum Distribution) and the rest of the account. When TurboTax asks if you "put the inherited funds into your own IRA account," it is referring to the entire account, not just the RMD. Since you rolled the inherited IRA into a new IRA in your name, you should answer "Yes" to this question.
Once you have transferred the money into your own IRA account, you took out the RMD and placed it into a cash account. You do not need to supply any additional reporting for this. The only thing IRS and "Turbo Tax" is interested in is if you paid the required distribution for this year not how you deposited the RMD distribution once the funds were rolled into your IRA account.

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ellinjAuthor

To clarify this 1099R is from the beneficiary IRA. If I follow your suggestion and choose

Did {myName} Inherit this IRA - YES

Did {myName} put the money into {myName} own IRA - YES

It then tells me.

You told us {myName} rolled over $5000 to another qualified account.

This isn't correct. as that's the RMD amount not the value of the IRA. Should I have gotten a second 1099 for my spouses account Showing the rollover to my new IRA?

ellinjAuthor

To clarify,

1 .I had a Spouses IRA -> rolled over to what fidelity called a BDA account in my name.

2. I took the required RMD from the BDA account.

3. BDA account rolled into a new IRA

I have a 1099 for the RMD from 2, but not a 1099 showing the distribution from 1 to 2 or 2 to 3. Number 2 is marked with distribution code 4. not 7. The line of questions from TT seem to imply its looking for the 1099 from the first rollover.