IRA Inheritance

[lbervin]

Taxpayer's mother passed way and he received a 1099R in the amount of $7500. In box 7 the distribution code is number 4 and the IRA/SEP/SIMPLE box is check. Also in box 2 the taxable amount not determined is checked. I was wondering if this is a taxable distribution. Thanks in advance.

[Brian EA]

Taxpayer's mother passed way and he received a 1099R in the amount of $7500. In box 7 the distribution code is number 4 and the IRA/SEP/SIMPLE box is check. Also in box 2 the taxable amount not determined is checked. I was wondering if this is a taxable distribution. Thanks in advance.

It is a death benefit IRA distribution and it is taxable

[Safire]

Taxable yes, but no 10% early withdrawal penalty.

[Brian EA]

Taxable yes, but no 10% early withdrawal penalty.

Box 7 code is 4 .That,s a death benefit. No penalty is correct.