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Old 01-22-2019, 01:36 PM
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Join Date: Jan 2019
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Unhappy IRA inherited

I inherited a portion of an IRA in 2016. The balance I inherited was rolled over into an Annuity. I paid taxes on this amount in 2016. I now have an annuity with RMD due to my father's age when he passed away. I get the RMD and am taxed on the amount again. When I filed my taxes last year I was told this annuity is not considered an Inherited IRA yet my 1099-R had distribution code 4 (death) listed.

Am I paying double taxes on this? How should I be claiming this on my taxes?



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Old 01-23-2019, 01:38 AM
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Join Date: Oct 2010
Posts: 5,236
since you are a non-spouse beneficiary, you are not allowed to do an indirect rollover; As a non-spouse IRA beneficiary, you are only allowed to do a direct transfer to a properly title Inherited IRA without being taxed. However,If you make the mistake of withdrawing the funds, they will be taxable If inherited IRA funds are to be transferred or moved, the funds must be transferred directly between the two accounts without you ever having to take hold of the money.With an Inherited Traditional IRA, you?ll pay taxes on any distributions you takeThe beneficiary of a non-annuity IRA has the right to convert the assets to a annuity contract. This conversion does not create a tax bill.but, Beneficiaries pay income taxes on withdrawals from traditional IRA annuities



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