Announcement

Collapse
No announcement yet.

1099-R code 4 (death) but still alive?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    1099-R code 4 (death) but still alive?

    This is the first one I came across. The 1099-R has code 4 (death) and the taxpayer is still living. The taxpayers spouse died several years ago and the 1099-R does NOT have the "total distribution" box marked.

    Is it possible this is funds still from the spouse's acct who died several years ago?

    #2
    Yes, it is possible. I have clients that receive this type of income yearly.
    JG

    Comment


      #3
      When I get this situation

      I always ask if I may touch the client in order to assure myself that they are not a spirit. After all, if I have a return for a spirit I should not do it myself, but rather have it ghost written.

      Comment


        #4
        The code is that it is not subject to the early withdrawal penalty because the person the account belonged to died, and the current taxpayer inherited it. A dead person can't take an IRA withdrawal last time I checked.

        Comment


          #5
          Code 4

          I have had some deadbeat clients with a 1099-R.
          Confucius say:
          He who sits on tack is better off.

          Comment


            #6
            George Burns

            "If you live to be a hundred, you've got it made. Very few people die past that age."

            Comment


              #7
              most often

              I find that code 4 on US civil service 1099R's for the surviving spouse.
              And on military retiree statements for same relationship.
              ChEAr$,
              Harlan Lunsford, EA n LA

              Comment


                #8
                Saw this joke recently

                in the monthly newsletter of the Arkansas Society of Accountants:

                "Of life's two certainties (death and taxes); only one can be amended.

                Comment


                  #9
                  good advice

                  Originally posted by Black Bart View Post
                  in the monthly newsletter of the Arkansas Society of Accountants:

                  "Of life's two certainties (death and taxes); only one can be amended.
                  but I'll also mention that to my biographer.

                  Well, not "biographer", but maybe obit writer.
                  ChEAr$,
                  Harlan Lunsford, EA n LA

                  Comment

                  Working...
                  X