Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
A
aji1013
February 19, 2021
Question

What is the PA distribution type for a Beneficiary IRA RMD payment?

  • February 19, 2021
  • 1 reply
  • 0 views
I am stuck on my PA-40 need to enter a "distribution type" for 1099R which is a RMD payment from an inherited IRA.  None of the types specifically say inherited IRA, what is best type to chose?

1 reply

AmyC
AmyC
Employee
February 23, 2021

Your distribution is not taxable so the best option available is the Traditional or Roth IRA, I'm over 59.5. This will force the program to allow that compensation to go through non-taxed.

 

PA law: Distributions from IRAs are not taxable for Pennsylvania income tax purposes if they are received on or after reaching age 59 ½ or if they are paid to the estate or a designated beneficiary by reason of a participant's death.  

 

If you ever receive a letter of inquiry, you can tell them it was an inherited IRA and therefore tax free.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    L
    lindak9196
    April 20, 2021

    This really needs to be fixed in Turbo Tax.  Telling us to enter something that isn't true, really isn't a good option.

     

    Thank you for at least giving us the information as to what needs to be done even though it is not accurate.

    fanfare
    fanfare
    Employee
    April 21, 2021

    The "trick" used doesn't matter. 

    Only the taxable amount matters.

    You know it is an inherited IRA and so does the state of PA because the 1099-R Code is 4.

      TurboTax Sign In Widget
      TurboTax flag icon

      Unlock tailored help options in your account

      Create an account
      TurboTax Expert Assist
      TurboTax Expert

      Get answers to all your tax questions

      Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

      Terms & ConditionsAccessibility statement
      Intuit
      TurboTax Credit Karma QuickBooks MailChimp

      ©1997-2022 Intuit, Inc. All rights reserved.
      Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
      of Intuit Inc. Terms and conditions, features, support, pricing, and service options
      subject to change without notice.

      Security Certification of the TurboTax Online application has been performed by
      C-Level Security.

      By accessing and using this page you agree to the Terms of Use.

      Accessibility

      TRUSTe nResult Certified e-File C-Level Security Certification