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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121598  
Subject: Re: Tax Issues on Inherited Annutiy Date: 4/27/2013 2:10 PM
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What happened to the inherited annuity? I thought you said you rolled this into an inherited IRA and that it had an after-tax basis shown on the 1099-R.

I posted on that this morning. I was an idiot and totally forgot that Dad had both an annuity and an IRA with one company, and an IRA with the other. It was the annuity that was partially taxable, and both IRAs, both rolled over to the inherited IRA, were fully taxable. We were only issued a 1099-R for the annuity, which I mistook as one of the IRAs, and of course for the RMD on the inherited IRA. I was not prepared for all this.

I tried to make it clear that you do everything in isolation. Inherited in one universe. Non-inherited in a totally different universe. This will remain true even when you reach 70 1/2 and have to start RMD's from the non-inherited universe.

Fabulous. Thanks.

IP
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