Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.