Mom died in prior year

[Scrivner]

Client's Mom died in 2012, it was a "small" estate and everything passed to only child (my client). Attorney closed probate estate (for prime residence) before year end. In 2013 a final pension payment was made to estate and cashed by child. Of course now a 1099R for 2013 was issued. How does it get reported? Set up a 1041 for the estate? Just have the child report it on their 1040 with some note attached? Issue the child a nominee 1099R so that there's documentation? Oh yes, there's withholding, too. Thanks in advance.

[Koss]

Form 1041

If the 1099-R identifies the estate as the payee, with the EIN of the estate, then I would file a 1041 tp report the pension distribution.

What is the distribution code? 4?

The taxable portion of the distribution should pass through the estate to the beneficiary on Schedule K-1, so the estate will not have any taxable income.

Hopefully the withholding can pass through, also, but I don't remember how that works.

BMK

[Burke]

Oh yes, there's withholding, too. Thanks in advance.

And therein lies the problem. Whose SSN is on the 1099R? If its the estate, then file a 1041 to get it. If its the deceased, you need a corrected 1099R from the issuer.