Question

Got a real mess with a distribution of a annuity

Forum|Forum|6 years ago
February 11, 2020
1 reply
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My siblings and I took a total distribution of a annuity my mother had. This account sat for 5 years growing in value and then we had to close it out and take the distribution. I usually request taxes to be taken out of anything i do, but my siblings did not. The proceeds were paid to my deceased mothers estate and then distributed equally to the three of us. Taxes are due and the estate, which is now closed, received one 1099-r How do we proceed when we have one 1099-r for the three of use. The 4972 form does not work, so I am looking for a way to figure this out. My deceased mother was born prior to 1936.

MichaelL1

If you have an attorney or executor for the estate, this could be taken care of this way.

First the Form 4972 is not needed.

It appears a 1041 Estate return should be filed for the 1099R, and it would show all the money distributed to the 3 heirs on a 1041 K-1 (that each of the 3 of you would get). The 1041 would have no tax due, and each of the 3 heirs will report the distribution as ordinary taxable income.

I would however talk to someone with tax expertise, to do this for you.