Inherited Roth IRA tax reporting question - TaxAct

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letsgobobby
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Inherited Roth IRA tax reporting question - TaxAct

Post by letsgobobby »

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onmyway33
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Joined: Sat Nov 15, 2014 7:40 am

Re: Inherited Roth IRA tax reporting question - TaxAct

Post by onmyway33 »

Hello,

I found myself in the exact same situation recently when inputting a non-spouse inherited Roth IRA into TaxACT. I used the "Quick Entry" Method. The first time I just entered the info and dollar amounts in boxes 1-17 and also was assessed tax. I then read further through the next data entry section.

Verify the following by scrolling down to the "Additional Information not reported on Form 1099-R" section:
1. 5 year holding period for Roth IRA contributions is checked to the "met"
2.Inherited IRA section, "Check if this distribution is from an inherited IRA" box is checked
3. "Who did you inherit the IRA from" is checked to "Non-Spouse"

You should see the taxable amount at the bottom show as "$0.00". This worked for me. However, I am not a tax professional, and you may want to confirm this with others more knowledgeable than myself.
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Topic Author
letsgobobby
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Joined: Fri Sep 18, 2009 1:10 am

Re: Inherited Roth IRA tax reporting question - TaxAct

Post by letsgobobby »

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Alan S.
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Location: Prescott, AZ

Re: Inherited Roth IRA tax reporting question - TaxAct

Post by Alan S. »

The program should not be generating a Form 8606 either. The gross distribution goes on line 4a of Form 1040, nothing on 4b.

Why did you say Dad had taken his RMD? He had no RMD if he owned it, but would have if he inherited it. This does not affect the taxation of your distribution, but would affect the calculation of your RMD.
Topic Author
letsgobobby
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Joined: Fri Sep 18, 2009 1:10 am

Re: Inherited Roth IRA tax reporting question - TaxAct

Post by letsgobobby »

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