Question
1099-R Code 4
Client received a 1099-R with code 4 for deceased spouse. The IRA was moved by Broker from Deceased IRA owner to his spouse. Since she had her own IRA at the same institution, they moved the funds to her account and told her it would not be taxable. Box 1 and Box 2a contain the same amount. 2b taxable amount not determined is marked and total distribution is marked.
My experience makes me believe that this is going to cause a problem.
