I have a 1099-R form because my father passed away and I received money. The description of the form on here says withdrawal from 401K - am I in the right place?

Forum|Forum|6 years ago
June 4, 2019
2 replies
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I did not withdraw from my own account.

TurboTax Deluxe Online

DavidD66

I'm pretty sure you're in the right place. It sounds like you were the (or one of) beneficiary of you Father's 401(k). A Form 1099-R is for a distribution of any sort from a "qualified" (retirement) account. The code in Box 7 of the 1099-R should be a 4 -Death. This indicates there is no early withdrawal, but since it was a 401(k) it will be taxable. Just enter it in TurboTax and the program will determine how much is taxable.

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HEFEWEIZEN

Why does turbo tax ask if the person was born before or after 1952

DawnC

Employee

If the box 7 code on your 1099-R is 4D, the question should not appear; we are working to update the 1099-R interview. In the meantime, when asked when the decedent was born, answer they were born AFTER January 1, 1952, whether true or not. @HEFEWEIZEN

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Timrichpt

Turbo Tax says to enter the code from the 1099-R which, in my case is a ‘7’ – normal distribution.

My father passed so I would think ‘4 - death’ would be the correct code.

I agree that your answer sounds correct, however it is counter to the written instructions within the TurboTax software.

macuser_22

Employee

What instruction? @Timrichpt This thread was about an inherited account. Is that your case?

Is your name and SSN on the 1099-R?

Is the IRA/SEP/SIMPLE box checked?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**