ANSWERS: 1
  • Something is not sounding right. First of all, IRAs can not be rolled over into a 'beneficiary' IRA unless it was a spousal IRA. Who 'rolled' it? And if your K1 is reporting the $50K, then YES you need to report it on your tax return and it would have already been taxed, so there would not have been an RMD to be 're-taxed' in the form of a 1099R. I think you need to go back to the person who prepared the 1041 AND the trustee who issued you the 1099R to make sure you understand what happened and why.

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