Question

Inhertied IRA 1099-R reporting

Forum|Forum|4 years ago
January 22, 2022
2 replies
0 views

My wife inherited an IRA from her cousin (Non-spouse). She is age 70 and was required to take a Required Minimum Distribution (RMD) in 2021. After entering the 1099-R information in Turbo Tax 2021, the program asks for the first name and date of death of the person from whom she inherited the IRA. Next, it asks when the person was born. When I check that her cousin was born after July 1, 1947, the program will not jump to the screen asking if the withdrawal was a Required Minimum Distribution (RMD). Is it OK to override the program by falsely indicating that her cousin was born before to June 30, 1947 in order to allow the program to jump to the screen asking about the inherited IRA and whether the withdrawal was an RMD.

R

RobertB4444

Yes, that is ok.

But it's really unnecessary.

Whether it is an RMD or not doesn't change how much tax is owed on it. And inherited IRAs have different distribution rules. Just make sure that the amount that she received is on the return and you should be all set.

This is the IRS rules on Inherited IRAs.

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fanfare

Employee

why do you want to trick TurboTax with false information into doing possibly wrong calculation on your tax return ??

O

Opus 17

Employee

The cousin‘s birthday is important because it helps to determine whether your wife is an eligible or not an eligible designated beneficiary. If your wife is more than 10 years younger than the original account owner, then your wife is not an eligible beneficiary. That means she must follow the 10 year rule rather than the RMD rule. She must spend the account to zero and close it within 10 years of inheriting it, but does not have any annual requirement other than that.

If your wife is less than 10 years younger than the cousin, then your wife is an eligible designated beneficiary and she may withdraw on any schedule and keep the account longer than 10 years if she wants to, but she must withdraw at least her RMD amount each year.