Hi I inherited a nonqualified and qualified portion from a pension plan of my parent who was non-married at time of death. I am a non-spouse beneficiary. The parent was not yet retired when they died. The nonqualified amount was distributed last year as a cash distribution and issued in a 1099-misc. I also inherited a traditional IRA from that same parent as well which is now designated as an inherited ira. I instructed the custodian of the pension plan I wanted them to do a custodian to custodian transfer to that inherited IRA account from which no distributions had been taken yet. They issued a check made out to the custodian “for benefit of” me along with the account number of the inherited IRA. The new custodian deposited the check into the inherited IRA.

For this tax year I have two 1099-r’s. One is from the first RMD from the inherited IRA which I took in 2017 (which included the qualified portion transferred). The 1099-r from the RMD has the same amount for gross distribution and taxable amount and has distribution code 4. The IRA/SEP/SIMPLE box is checked.

The other 1099-r I received from the pension plan who did the custodian to custodian transfer. They list the gross distribution transferred, taxable amount in 2a is blank, and total distribution box is checked. Distribution code indicated is 4G. IRA/SEP/SIMPLE box was not checked.

I am a bit confused that I received a 1099-r from the pension plan because from reading the forum I was under the impression that this custodian to custodian transfer was not necessary to report on a 1099-r. Does it sound like everything is the way it should be? Or do I need to follow up with the pension plan? I was explicitly clear with what I wanted them to do when I instructed them doing the custodian to custodian transfer.