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Distributions are tax free if they were used for qualified disability expenses.
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Hello it wasn’t use for disability expenses it was inherited from her deceased parent. So where I do enter the 1099QR? With a gross distribution let’s say $10,000 and basis of $10,000, no earnings?
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Enter the taxable portion of the distribution on the Other Income Statement on line Q. Then enter it in Part II of form 5329.
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Thanks but what do you do with Basis of the same amount? It is taxable to the taxpayer if there was no earnings? Thanks for your help
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Only earnings are taxed. I suggest looking at pub 907 in the section on Able accounts for a good overview.
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Thank you, already did. Thanks again
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I'm happy I was able to give you the answer. Good luck with the final stretch of the season.