Does timing change which return reports an inherited IRA or retirement account?

Question

The part that needs sorting out is that a beneficiary inherited an IRA or Roth IRA and needs to understand distribution deadlines and income tax. What I want to understand is this: does timing change which return reports an inherited IRA or retirement account?

Soradin · Accepted Answer

Timing matters because the taxable event is generally the distribution from the inherited retirement account, and the reporting can differ depending on the account type and who the beneficiary is. Spouses may have options that are not available to nonspouse beneficiaries, and inherited Roth treatment can differ from pretax accounts. Keep the account statements and tax forms and confirm the correct reporting year and taxpayer before filing.

Does timing change which return reports an inherited IRA or retirement account?

Soradin

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