inherited ROth IRS not held 5 years

Forum|Forum|5 years ago
February 25, 2021
11 replies
25 views

How do I put into the basic tax program an inherited Roth that was not held 5 years. I believe it is taxable but the program with the new update today states it is not taxable. which is it and how do I file it.

ProSeries Basic

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T

TaxGuyBill

Give us some details. What is in Boxes 1, 2 and 7 of the 1099-R? What is the Basis of the Roth IRA?

R

riverarickAuthor

Level 3

In box 7 there is a "J" and it is for $10,000 with nothing in the taxable box but taxable not determined is checked. Client received this from her parent who died but the ROTH was only 4 years old.

T

TaxGuyBill

Interesting. You are right, it seems like the program is doing it wrong now. It SHOULD be treating the Roth distribution as taxable to the extent the distribution is in excess of Basis.

Maybe @Orlando11 could report this error to the proper person.

But that leads me to the second point, you NEED to know the Basis. The entire amount is not taxable; the distribution is only taxable to the extent it is larger than the Basis.

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