Taxpayer died an in April 2021 before reaching RMD age. Initial and Final 1041 Estate Income Tax return filed for the tax year ending December 31, 2021..
Excess deductions and $6K of capital losses (to each beni) flowed through to 5 beni’s via K-1’s and reported on their indidividual 1040’s.

In January 2023 a check was unexpectedly issued to the estate for a 401K distibution from an account thirty years forgotten that no one saw coming.

Now what? Amend the 2021 Final 1041 and pull back excess deductions and capital losses and have the 5 ben’s amend their
2021 Individual 1040 returns? And then file the final 1041 for tax year (calendar) 2023 and pass out the excess capital losses that remain after offsetting the $1,600 in 2023 income?

Seem like going after a rat with a nuclear weapon. Overkill of time, money and effort for both client and accountant.

No income for 2022 so no 1041 required for that year.

Has anyone hoed this road before and or have any practical suggestions/solutions. Life is not always perfect. But of course
one should not receive capital losses until one is entitled to them.

Executor (one of the beni’s is) willing to report the final $1,600 on their 1040 and call it a day (marginal 20% tax bracket).
Of course then we have the matching issue for the 1099R issued to the Estate’s EIN for 2023.

Much appreciated,
ccl