Hi and thanks in advance! I've been reading about this but am still a bit unclear:
My spouse's mother passed away late 2023, and he inherited part of her IRA (along with siblings).
All seemed to go well - we did a direct transfer from the firm holding the original IRA to our firm, where we set up an inherited IRA account. We talked to multiple people multiple times and all felt correct. The outgoing firm specifically said we were doing a direct transfer and did not need to set up an account with them.
Now we have gotten 1, possibly 2?, incorrect forms.
(1) From the firm who sent the direct transfer to the new firm (Fidelity), we received a 1099-R with code 4=Death as the distribution code and the full amount showing as distributed. We spoke to them and they agreed that was wrong, and even said the 1099-R should not have been issued in this case. To rectify, they have sent a CORRECTED 1099-R which shows 0 in all of the boxes but still shows code 4=Death. Along with 'X's in boxes 2b and 7 (taxable amount not determined; total distribution; and IRA/SEP/SIMPLE). In addition, there is an account number on this 1099-R, and I honestly have no idea where the account number came from, so I am wondering if it is in fact my MIL's account number (again I truly do not know). But the 1099-R has my spouse's name and SS.
Question: Should I be asking them to RESCIND the 1099-B all together (no idea how they report that to the IRS but I assume they can), lest I get questions on this down the road from the IRS?
(2) On the receiving end with Fidelity, we received Form 5498. I am unclear if this is correct, and it does worry me because it says '2. Rollover contributions' with the amount deposited. It does show the original depositor's (MIL's) name at the bottom under box 11, which is not checked.
Question: Should I have received Form 5498 at all, or is this also incorrect?
Thank you!
My spouse's mother passed away late 2023, and he inherited part of her IRA (along with siblings).
All seemed to go well - we did a direct transfer from the firm holding the original IRA to our firm, where we set up an inherited IRA account. We talked to multiple people multiple times and all felt correct. The outgoing firm specifically said we were doing a direct transfer and did not need to set up an account with them.
Now we have gotten 1, possibly 2?, incorrect forms.
(1) From the firm who sent the direct transfer to the new firm (Fidelity), we received a 1099-R with code 4=Death as the distribution code and the full amount showing as distributed. We spoke to them and they agreed that was wrong, and even said the 1099-R should not have been issued in this case. To rectify, they have sent a CORRECTED 1099-R which shows 0 in all of the boxes but still shows code 4=Death. Along with 'X's in boxes 2b and 7 (taxable amount not determined; total distribution; and IRA/SEP/SIMPLE). In addition, there is an account number on this 1099-R, and I honestly have no idea where the account number came from, so I am wondering if it is in fact my MIL's account number (again I truly do not know). But the 1099-R has my spouse's name and SS.
Question: Should I be asking them to RESCIND the 1099-B all together (no idea how they report that to the IRS but I assume they can), lest I get questions on this down the road from the IRS?
(2) On the receiving end with Fidelity, we received Form 5498. I am unclear if this is correct, and it does worry me because it says '2. Rollover contributions' with the amount deposited. It does show the original depositor's (MIL's) name at the bottom under box 11, which is not checked.
Question: Should I have received Form 5498 at all, or is this also incorrect?
Thank you!
Statistics: Posted by isthisthingon77 — Tue Apr 16, 2024 2:22 pm — Replies 3 — Views 162