IRA distribution after death
Situation:
wife’s brother inherited and IRA from his father and was taking monthly distributions. The brother died on 9/30/10 with no will. The IRA had no beneficiary. Bank distributed funds 100% which were deposited in bank account titled to Estate of XXX.
The 1099 for the IRA distribution has the brothers SSN, not the TIN of the Estate.
Shouldn’t this income pass to the estate (and later be distributed to brothers heirs via K-1 at end of estates first tax year). If so, should I not ask the bank to issue corrected 1099 with the estate TIN?
I still have to do the stub year for brother but I don’t think I should include the income from the IRA distribution.
Any feedback welcome.
Permalink Submitted by Alan Spross on Tue, 2011-02-22 20:52
There should be two 1099R forms if funds were distributed both before and after his death. Distributions he received prior to 9/30 should show on the 1099R for his SSN and go on his final return. And distributions made after his death to the estate should have the estate TIN. The estate would then issue a K1 for distributions made to the beneficiary of his estate.