1099-R Code / Minimum Distribution?

[Guest notapensiongeek]

I know this is a stupid question, but:

We have a Profit Sharing Plan where the owner has been taking miminum distributions since he turned 70 1/2. He died in calendar year 2006 and had taken a portion of his minimum prior to his date of death, and his beneficiary took the rest this year.

We report the deceased participant's information on the 2006 1099-R, correct? What code do we use on the 1099?

Thanks for your help ;-)

[A Shot in the Dark]

Without completing any research, my first response to the question would be to complete two separate 1099's.

A 1099R denoting a taxable distribution to the deceased participant or their estate.

A 1099R denoting a taxable distribution to the beneficiary.

Each 1099R will show the taxpayer and their respective Social Security #.

[Guest notapensiongeek]

I think you may be right - so then the code for the decedent would be "7" and the code for the beneficiary would be "4"...

[A Shot in the Dark]

Yes. I don't know any other way to report the taxable distribution to two different tax payers.