Inherited IRA RMD

Submitted by john sklenar on Thu, 2013-01-17 17:07

I am taking an RMD out of a client’s Inherited IRA. Can someone please tell me if this is considered a “code 7” normal distribution or a “code 4” distribution due to death, as far as a 1099 is concerned. Beneficiary is 56 y/o. Thanks.



Submitted by Alan - IRA critic on Thu, 2013-01-17 17:19

All distributions to a beneficiary are coded 4 (death benefits). If the IRA was inherited from a spouse, code 4 continues to apply until the spouse assumes ownership or rolls the proceeds over to their own IRA.



Add new comment

Log in or register to post comments