1099 box 7 code for RMD on beneficiary IRA??

#4 03-09-2005, 09:58 PM

<mvl_groups_user[at]yahoo.com> wrote:

- quote -

> I was the beneficiary of my deceased father's IRA.
> I transferred the funds to a beneficiary IRA in my name.
> Each year, I am required to take a minimum distribution
> based on my single life expectancy (even though I am in my
> twenties).
> I took the minimum distribution, and received a 1099 from my
> bank for it. However I don't think my bank has their 1099
> correct. What is the appropriate 1099 box 7 code in this
> scenario? Should it be 2 (early distribution w exception),
> 4 (death), 7 (normal distribution)?

It should probably be the same as the person from you
inherited, which is I guess is 7, but for federal tax
purposes, there's no practical difference between a 4 or 2
or 7.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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#3 03-09-2005, 09:58 PM

4. You are receiving it because of death.
The instructions are on the back of the form 1099R.

Missy Doyle

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#2 03-09-2005, 09:20 PM

mvl_groups_user[at]yahoo.com wrote:

- quote -

> I was the beneficiary of my deceased father's IRA.
> I transferred the funds to a beneficiary IRA in my name.
> Each year, I am required to take a minimum distribution
> based on my single life expectancy (even though I am in my
> twenties).
> I took the minimum distribution, and received a 1099 from my
> bank for it. However I don't think my bank has their 1099
> correct. What is the appropriate 1099 box 7 code in this
> scenario? Should it be 2 (early distribution w exception),
> 4 (death), 7 (normal distribution)?

Code 4. You say you transferred the funds to a beneficiary
IRA in your name. You are not allowed to roll over any
amounts into or out of the inherited IRA. You can make a
trustee-to-trustee transfer as long as the IRA into which
amounts are being moved is set up and maintained in the name
of the deceased IRA owner for the benefit of you as
beneficiary. If this was done properly, the bank should be
using Code 4.

--
Alan
http://taxtopics.net

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#1 03-09-2005, 09:20 PM

If it's just a plain vanilla distribution from an IRA,
distributions to beneficiaries are normally reported with
Code 4 in Box 7 of the 1099-R.

--Chris

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03-09-2005, 08:04 PM

<mvl_groups_user[at]yahoo.com> wrote:

- quote -

> I was the beneficiary of my deceased father's IRA.
> I transferred the funds to a beneficiary IRA in my name.
> Each year, I am required to take a minimum distribution
> based on my single life expectancy (even though I am in my
> twenties).
> I took the minimum distribution, and received a 1099 from my
> bank for it. However I don't think my bank has their 1099
> correct. What is the appropriate 1099 box 7 code in this
> scenario? Should it be 2 (early distribution w exception),
> 4 (death), 7 (normal distribution)?

I'd vote "4," but it really doesn't matter. Just check the
back of the 1099-R to see if you have to prepare Form 5329
to show the penalty exclusion.

--
Phil Marti
Clarksburg, MD

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#-1 03-08-2005, 10:53 AM

I was the beneficiary of my deceased father's IRA.

I transferred the funds to a beneficiary IRA in my name.
Each year, I am required to take a minimum distribution
based on my single life expectancy (even though I am in my
twenties).

I took the minimum distribution, and received a 1099 from my
bank for it. However I don't think my bank has their 1099
correct. What is the appropriate 1099 box 7 code in this
scenario? Should it be 2 (early distribution w exception),
4 (death), 7 (normal distribution)?

-MVL

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