Retirement Weekly: I inherited my aunt’s IRA and I think I’m being incorrectly taxed

by | Sep 16, 2022 | Stock Market

Q.: I’m supposed to pay a big chunk of taxes for money I really didn’t get since it was indirectly rolled over to another IRA account when I inherited my aunt’s IRA after she passed away. I received a check but it was deposited right away to another IRA, I got a letter from the initial institution that a lump sum was taken and it was a qualified account. The 1099R that was sent to me in January 2022 had a distribution code of “4.” I told them that it was rollover, but they wouldn’t amend the distribution form. The financial adviser (where it was rolled over) said that it was a qualified account to be rolled over and doesn’t make sense that I’ll be taxed twice every time I withdraw from it for the next 10 years.

Is there something that I could do so that I won’t be taxed for it as an added income instead of tax deferred IRA since it was really a rollover? — Louise A. Hi Louise, So sorry to hear of your aunt’s passing. I’m not sure I’m giving good news or bad news here. There are differing forms of ro …

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