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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124138  
Subject: Re: Tax Issues on Inherited Annutiy Date: 4/6/2013 6:43 PM
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though I will have to get my IRA 1099-r changed to reflect the non-tax portion.

That's not going to happen. And it's not necessary.

The IRA custodian has no idea how much of a distribution is taxable, if any. For IRA withdrawals, they're supposed to mark the box indicating the taxable amount is not determined. They can optionally leave the taxable amount box blank, but most put the distribution amount there anyway.

At any rate, a corrected 1099-R is not needed to show the non-taxable amount of an IRA withdrawal. You file Form 8606 to determine how much of an IRA withdrawal is not taxable. I believe the IRS pretty much ignores the taxable amount for IRA withdrawals, and looks to that 8606 instead.

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