Question

Mom, 85, was the ben of dad's, 89, IRA. He died in Sep. The IRA was rolled into mom's IRA in Nov. A mrd was done to dad's orig IRA in Dec. Why does TT show it non-tax?

Forum|Forum|7 years ago
June 4, 2019
3 replies
0 views

Mom, 85, was the beneficiary of dad's, 89, IRA. He died in Sep. The IRA was rolled into mom's IRA in Nov. A mrd was done to dad's orig IRA in Dec. The 1099-R was received in my mother's name. Why does TT show it non-tax?

TurboTax Premier Windows

D

dmertz

Employee

Does your mom have basis in nondeductible traditional IRA contributions (including any transferred from your dad's IRA)?
Did you click the Continue button on the Your 1099-R Entries page and complete the additional questions that allow TurboTax to be able to properly calculate the taxable portion of a traditional IRA distribution?

J

jbonvino62ttAuthor

No regarding nondeductible traditional IRA contributions. Yes, regarding TT entry.

D

dmertz

Employee

If the money in your dad's IRA was transferred to your mom's IRA trustee-to-trustee, that was a nonreportable transfer. That money in your mom's IRA is now treated as if it had always been in your mom's IRA. Indicate that the RMD distribution was not from an inherited IRA and was not rolled over.

(If you indicate that the distribution was from an IRA inherited from a spouse and you indicate that the distribution was rolled over to the IRA of the surviving spouse, TurboTax will report it as a nontaxable rollover of the entire amount.)