Jump to content

1099R Code for distribution from an Inherited IRA


KdGal
 Share

Recommended Posts

My client received a 1099R for a distribution taken during 2019 from an Inherited IRA account.   My client was the non-spouse beneficiary of this IRA and inherited it several years ago.  The funds are held in an inherited IRA.  My client is over age 59 1/2 (actually 61 yrs old).    The 1099R is coded with a "1" in box 7.   That seems wrong to me.  If she is over 59 1/2, shouldn't it be a code "7" normal distribution so that the 10% early w/d penalty doesn't apply?

Any guidance or advice is much appreciated. 

Thank you.

Link to comment
Share on other sites

3 hours ago, Lou S. said:

If it's an inherited IRA shouldn't the code be 4 - since this is a death benefit payment?

But yes the code of 1 is clearly incorrect if he is over 59 1/2.

 

Thank you for your reply!   I knew it should be a code 4 in the year she originally rolled over the funds into the inherited IRA.  I wasn't sure if it would continue to be a code 4 if she took distributions from the inherited IRA in future years as well.  Thanks!

 

Link to comment
Share on other sites

Agree it should be code 4.  Hard to believe this isn't a problem with the account setup and registration - does it include "BENE" or "BENE PAYOUT" or something similar?  Is the DOB correct in the system (not that it should matter)?  

Ed Snyder

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...