The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Tax Issues on Inherited Annutiy Date:  4/6/2013  6:40 PM
Author:  TMFPMarti Number:  118313 of 127513

Since that inherited IRA was established in 2012 and I am paying tax on my first RMD on it, that should not be too bad to amend, though I will have to get my IRA 1099-r changed to reflect the non-tax portion.

No, no, no.

Have you already filed your 2012 return? If not, there's nothing to amend. If you have, slow your roll so you only have to amend it once.

Did you get a 2012 1099-R for the annuity distribution? You use the data from that to complete line 2 of Form 8606. See the instructions.

1099-R's for IRA distributions are always supposed to be coded "Taxable amount unknown" since no IRA custodian has the necessary information to compute it. You use Part I of Form 8606 to calculate the taxable portion.

I did get an RMD in 2011 from another annuity that Dad wasn't due to get an RMD from until after his death, so it came straight to me. Looking back at it the 1099R has checked off both 2B which says that taxable amt not determined and that 2A should be blank, but they put the full amount as taxable in 2A so we paid the whole thing.

An annuity isn't an IRA, and the entire amount may have been taxable. You clear that up with the issuer.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us