1099R Death Benefit

Forum|Forum|6 years ago
February 9, 2020
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In posting a 1099R Death Benefit Turbo Tax thinks I am the employee. Box #7 has a 7 in it. how do I handle this?

macuser_22

A 1099-R code 7 in box 7 is a normal distribution to the owner of the retirement account.

What do you mean by "death benefit"? Is this supposed to be an inherited distribution to the named benificuary of the account - if so the box 7 code does not indicate that.

Whose name and SSN is on the 1099-R - yours or the deceased?

You need to contact the issuer of the 1099-R for clarification.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

TXNnNY

no taxable amount entered in box 2a; box 2b has both undetermined tax and total distribution checked; box 7 is marked 4D (death); ira/sep/simple is not checked

this is a death benefit payout to a named beneficiary

should it be taxed?

I went from a tax return of over 5K$ to owing 500

macuser_22

The taxable amount is usually the box 1 amount unless you have a nontaxable basis in the account. The payer should have been able to calculate that.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**