Distribution from inherited IRA..
If someone transfers their inherited IRA from one custodian to another (directly), is this coded in box 7 of their 1099-R as “G – direct rollover to a qualified plan?” Also, does the RMD from an inherited IRA get coded on the 1099-R as “4” in box 7 (death). Thanks for clarifying.
Permalink Submitted by Alan Spross on Fri, 2009-03-20 02:20
If an IRA is transferred directly to another IRA, it is not a distribution, just a non reportable transfer, so there should be no 1099R issued at all. The “G” coding is used when there is an IRA transfer either to or from a qualified plan.
An RMD from an inherited IRA is coded 4 as a death benefit, as is a non RMD distribution.