Question

My mother died last year, she had just $472 left in a Roth IRA, that was paid to me. As her beneficiary, I was sent a 1099-R by the payer. How should I claim this income?

Forum|Forum|5 years ago
February 14, 2021
1 reply
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TurboTax Premier Online

Employee

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**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.**

J

jlachoffAuthor

Well, you answered my question very quickly, but I fear you did not actually read the details: This 1099-R is money I received as a beneficiary of my mom's estate from HER retirement account. Neither I nor my spouse are retirement age yet. Are you saying that this doesn't matter, and I should just report it as if I took a distribution from my own retirement account?

D

dmertz

Employee

Because it was paid to you as beneficiary, it must be reported on your tax return by entering the Form 1099-R in TurboTax were you would enter any Form 1099-R for a distribution from your own IRAs, but it's not treated quite the same as a distribution from your own IRAs. Since you, the beneficiary is under age 59½, the code T or Q in box 7 of the Form 1099-R indicates that it's from an inherited Roth IRA, but you still need to explicitly tell TurboTax that it was from an inherited Roth IRA. TurboTax will ask you to determine and enter the taxable amount. If the Form 1099-R has code Q in box 7, the taxable amount of the distribution is certainly $0. If the code in box 7 is instead code T, the taxable amount is $0 if your the first year for which your mother made a Roth IRA contribution was before 2016. If her first contribution was after 2016, you'll need to determine how much of the distribution consists of nontaxable original contributions or conversions and how much is taxable earnigns.