Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

inherited ROth IRS not held 5 years

riverarick
Level 1

How do I put into the basic tax program an inherited Roth that was not held 5 years.  I believe it is taxable but the program with the new update today states it is not taxable.  which is it and how do I file it.

Labels (1)
0 Cheers
11 Replies 11
TaxGuyBill
Level 15

Give us some details.  What is in Boxes 1, 2 and 7 of the 1099-R?  What is the Basis of the Roth IRA?

0 Cheers
riverarick
Level 1

In box 7 there is a "J" and it is for $10,000 with nothing in the taxable box but taxable not determined  is checked.  Client received this from her parent who died but the ROTH was only 4 years old. 

0 Cheers
TaxGuyBill
Level 15

Interesting.  You are right, it seems like the program is doing it wrong now.  It SHOULD be treating the Roth distribution as taxable to the extent the distribution is in excess of Basis.

Maybe @Orlando   could report this error to the proper person.

 

But that leads me to the second point, you NEED to know the Basis.  The entire amount is not taxable; the distribution is only taxable to the extent it is larger than the Basis. 

0 Cheers
Orlando
Intuit Alumni

Asking.. stay tuned

0 Cheers
riverarick
Level 1

Did you fix this problem of the ROTH  in the basic program becuase the pro series regular program calulates it correctly as taxable.

0 Cheers
TaxGuyBill
Level 15

Really?  That seems REALLY weird.  They both use the same programming, so I can't figure out why Professional and Basis could end up with different results.

0 Cheers
riverarick
Level 1

I agree so I am waiting for orlando to hopefully get the answer.  Also are you having any problem downloading 1099B for stock.  None of my clients can download to my basic program

0 Cheers
TaxGuyBill
Level 15

I don't download stock transactions; it seems quicker and easier to do it manually.  So I don't know if Basic has a glitch with that.

0 Cheers
TaxGuyBill
Level 15

Orlando, in case whoever is working on this needs to know, there are MORE problems with IRAs.

A Traditional IRA shows up as completely non-taxable if you add ANY Basis (even $1 Basis will make the entire distribution non-taxable).  I confirmed that.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/taxable-ira-distributio...

 

Another user said a Traditional IRA is showing up as non-taxable with NO Basis.  However, I was not able to replicate that one.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/re-1099r-ira/01/133304#...

 

0 Cheers
Orlando
Intuit Alumni

@SDJayhawk reported this to the team.. I need her to interpret the response

0 Cheers
riverarick
Level 1

also do not know the basis of the roth?

0 Cheers