How do I account for the annual required minimum distributions from an inherited rollover IRA? Is there a special place to enter inherited IRAs, or do I enter the RMD each year as special taxable income, or is it already accounted for in the program, or what?
Thanks.
Doug Kamerow
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We don't handle inherited IRAs at all. So you'll have to handle it with special receipts.
Best,
Dick Munroe
Thanks for your quick reply, Dick.
It seems then that I have two choices:
--enter the total balance of the inherited IRA as a "regular" IRA in my assets and let it be figured into resources available for growth and payouts during future years (but no RMDs will be specifically accounted for);
--don't enter it anywhere under assets and estimate and enter only the RMD payouts as special taxable receipts for the next 40 years or so. That would seem to be a more accurate indication of its effect (but a lot more effort to do).
Right?
Looks like. Maybe Larry will chime in with further thoughts.
Best,
Dick Munroe