inherited distribution from Teacher Retirement system of TEX
Client inherited $10,000 from Teacher Retirement System of Texas. This was received
as a lump sum distribution as part of her Mother’s Retirement through the State. It was
received 06/01/2009. The beneficiary thought this was a payment of life insurance
but received a 1099-R stating that it was taxable income. What option do they have
other than paying the tax?
Permalink Submitted by Marvin Rotenberg on Fri, 2010-01-29 21:11
A non-spouse beneficiary after receiving the check can not do an inherited IRA. A benificiary of a qualified plan must do a trustee to trustee transfer to an inherited IRA. Too late to do anything now.
Marvin