Distributions are tax free if they were used for qualified disability expenses.
Hello it wasn’t use for disability expenses it was inherited from her deceased parent. So where I do enter the 1099QR? With a gross distribution let’s say $10,000 and basis of $10,000, no earnings?
Enter the taxable portion of the distribution on the Other Income Statement on line Q. Then enter it in Part II of form 5329.
Thanks but what do you do with Basis of the same amount? It is taxable to the taxpayer if there was no earnings? Thanks for your help
Only earnings are taxed. I suggest looking at pub 907 in the section on Able accounts for a good overview.
Thank you, already did. Thanks again
I'm happy I was able to give you the answer. Good luck with the final stretch of the season.
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