Skip to main content
February 1, 2024
Solved

Inherited IRA

  • February 1, 2024
  • 1 reply
  • 0 views

I received some money from my Mother's IRA when she passed.

The bank with held Fed taxes from the distribution.  I have a form "1098, 1099, or 5498".

 

Where do I enter this information in TurboTax Deluxe?

Is it in the "Income from Form 1099-MISC?

    Best answer by dmertz

    The distribution to you from your mother's IRA is called Income in Respect of a Decedent.  As CatinaT1 said, IRD is taxable to the beneficiary in the same manner as it would have been had it been distributed to your mother while she was alive (except for any early-distribution penalty that might have applied to your mother).

    1 reply

    Employee
    February 1, 2024

    Wages & Income -> Retirement Plans and Social Security ->  IRA, 401(k), Pension Plan Withdrawals (1099-R).

    February 1, 2024

    My understanding from the bank when they distributed the funds is that it is not a disbursement. 

    It was my mother's IRA, but once she passed, it is just cash.

     

    Is that incorrect?

     

    CatinaT1
    February 1, 2024

    No. If it was a Traditional IRA, tax has to be paid when it is disbursed, regardless of who it was disbursed to.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"