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Ask Dr. Fiona Chen Your Own Question
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 473
Experience:  Former IRS Revenue Agent
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Ira was distributed to son and daughters. How do I enter ira

Customer Question

ira was distributed to son and daughters. How do I enter ira info on form 1041?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: $10,219.03 was split 3 ways by bank where ira was & a check was given to each of us. What line on 1041 is used to declare ira amount? What line is used to declare ira distrabutions?
JA: Is there anything else important you think the Accountant should know?
Customer: I have filled out a schedule k-1 for each of us and show $3406 in box 14 with a code of I.
Submitted: 7 months ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 7 months ago.

Dear Customer,

When the decedent's IRA account has beneficiaries' names specifically on the IRA account beneficiary designation form, the distribution is done.

The assets (the IRA account balances and their distribution) do not belong to the estate or the trust. Only if the IRA account names the estate as the beneficiary, the distribution comes to the estate.

Don't show that information on the K-1s. The IRA account distribution is not the estate assets.

The below citation and the website link is for your further reference

Please feel free to follow up.

Regards,

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

https://www.irs.gov/publications/p590b/ch01.html#en_US_2015_publink1000230753

IRA Beneficiaries

The rules for determining required minimum distributions for beneficiaries depend on the following.

  • The beneficiary is the surviving spouse.

  • The beneficiary is an individual (other than the surviving spouse).

  • The beneficiary is not an individual (for example, the beneficiary is the owner's estate). (But see Trust as beneficiary , later, for a discussion about treating trust beneficiaries as designated beneficiaries.)