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Form 1099 R

GH1
  |     |   1,058 posts since 2017

When my mom passed. A IRA was distributed to 3 children. Nothing withdrawn just distributed 3 ways to inherited iras. Now receiving a 1099 R. Need to file final taxes. Anyone know how to handle this form it's claiming a taxable amount. But was transferred?

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JeffinEasternFL
  |     |   744 posts since 2020
If you are using software, that should guide you through, but, by hand: Form1940 line 4a you can have the taxable amount as "0" and explain further if needed.
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GH1
  |     |   1,058 posts since 2017
Thank u. Will file soon. That form kinda threw me when said taxable amount
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LongTimeDAFan
  |     |   69 posts since 2022
GH1, I'm sorry for your loss. We had the same situation when my mom passed. If your mom was over 70 1/2 (receiving her RMDs annually), then whoever inherits the IRA would also be required to take RMDs (but the RMD amount would change due to their lower age and higher life expectancy). And I think there's a new rule that you will have to take distribution of all of your inherited IRA funds within 10 years now (there wasn't a time limit when we inherited). Talk to whatever institution holds your IRA and find out if you need to take an RMD for 2022 so that you are not penalized.
I don't know about how to file for your mom's estate, as I didn't handle that. But I wanted to let you know that you have some tax liabilities now (if your mom was over 70 1/2 when she passed). I know, more crap to deal with...
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chill08
  |     |   96 posts since 2022
My mother passed in 2021. I inherited her Traditional IRA. Three months later (10/2021) I took her RMD for calendar year 2021 (which she had not yet taken) because it was legally required. Unfortunately the Secure Act placed me in the 10 year distribution category. I chose to delay taking any distributions for 5 years because my income bracket will be lower. A few months into 2022, the IRS wanted to 'clarify" the 10 year rule which basically had been understood by all CPA's and FI that the distributions could be taken annually or delayed and taken all at once, etc as long as the IRA was paid out by 10th year. IRS wanted the RMD to be taken annually. The IRS language was so vague they had to issue a mea culpa November 2022 that those who did not take distributions for 2020-2022 tax years would not be penalized. They go on to state the regulation messaging would be 'cleaned up' sometime in 2023. I am waiting until late in 2023 to see what is decided. As for the 1099R, I can't add any useful info, I hand my taxes over to CPA and flee. 
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RickZ
  |     |   218 posts since 2010
I've had an inherited IRA since 2014 when my Mom passed. I 100% agree with LongTimeDAFan that you need to talk with the FI that holds the IRA. The taxable amount in the 1099 could relate to your Mom's year-of-death RMD - if she did not take her year-of-death RMD, then each beneficiary is responsible for their portion of the RMD.
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chill08
  |     |   96 posts since 2022
RickZ, correct, when I took the RMD for my mother in 2021 I received the 1099R, that income was reported on my personal income tax and I paid the taxes.
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