The deceased taxpayer was a 80 year old widow taking minimum required distributions from her $200K IRA. Upon her death, and at the request of the executor of her will, the IRA was rolled into equal inherited IRA's for her four beneficiaries.
The 1099 reads as follows:
box 1 Gross distribution: $200,000 box 2a taxable amount: $200,000 box 2b taxable amount not determined: Y box 2b total distribution: Y box 7 distribution code: 4 box 8 IRA/SEP/SIMPLE: Y
It seems to me box 1 is corrected, but box 2 should read $0, and box 7 should be code 4G
Am I correct, and if so, should I ask the bank to send a corrected 1099R?
If they will not send a corrected 1099R, I guess I will simply "override" my software to show $0 taxable, and hope the IRS sends no correspondence to us!