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Inherited ira from spouse

Forum|Forum|2 years ago
February 12, 2024
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Husband died in 2023. The financial firm where he had his IRA opened up an IRA account for me and transferred his money into a new IRA account for me with this same firm. I took the $50,000 RMD amount that needed to be taken out for the year and had 20% ($10,000) deducted for taxes. TT is askingabout this $10,000 and I don't know how to answer. It says that $10,000 was withheld from this distribution. Need to pick an answer to the following question........

Did I deposit $10,000 from my own funds in addition to the $40,000 received from the distribution?

Yes...I added $10,000 to make up the difference

or

No...I didn't add my own funds to make up the difference

What do I answer if this $10,000 was deducted for federal taxes?

Best answer by dmertz

The transfer from your husband's IRA to your IRA was apparently done by nonreportable trustee-to-trustee transfer, as it should have been, so this transfer will be reflected nowhere on your tax return.

With regard tot he entry of the Form 1099-R for the RMD distribution, the fact that the question posed by TurboTax that you are asking about is being asked at all implies that you mistakenly indicated that you moved this money to another retirement account. Presumably you did not do that since, as AmyC indicated, an RMD is not eligible for rollover. I suggest deleting this Form 1099-R from your tax return and reentering it, making sure to indicate that "you did something else with the money," meaning that you did not roll it over. The result will be that the entire $50,000 will be included on Form 1040 line 4b as taxable.

AmyC

Employee

Those are questions for a rollover. The RMD is not a rollover. Your husband had a required RMD for the year. You should enter the 1099-R as a distribution.

The rest of the money should have been rolled over to you and if you received a form it would not have a taxable amount unless you withdrew another amount.

I am very sorry for your loss.

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D

dmertzAnswer

Employee

The transfer from your husband's IRA to your IRA was apparently done by nonreportable trustee-to-trustee transfer, as it should have been, so this transfer will be reflected nowhere on your tax return.

With regard tot he entry of the Form 1099-R for the RMD distribution, the fact that the question posed by TurboTax that you are asking about is being asked at all implies that you mistakenly indicated that you moved this money to another retirement account. Presumably you did not do that since, as AmyC indicated, an RMD is not eligible for rollover. I suggest deleting this Form 1099-R from your tax return and reentering it, making sure to indicate that "you did something else with the money," meaning that you did not roll it over. The result will be that the entire $50,000 will be included on Form 1040 line 4b as taxable.