Employee Retirement Saving Plan Tax Question (Parent Death)

[ARCHIVED THREAD] - Employee Retirement Saving Plan Tax Question (Parent Death)

Posted: 2/1/2011 2:17:59 PM EDT

Hey guys,

I am trying to figure out how to put this on my taxes. My mother was enrolled in a work retirement plan, when she died. I am trying to figure out where I enter this on my taxes. It is a beneficiary disbursement with it split three ways between myself and my siblings. It isn't much around $1k gross payment, but I did have state and federal taxes withheld from it.

Posted: 2/1/2011 2:19:58 PM EDT

[#1]

You should get a 1099 for it, and enter it like other retirement income.

Posted: 2/1/2011 2:23:32 PM EDT

[#2]

Quoted:
You should get a 1099 for it, and enter it like other retirement income.

That is what I thought too. I haven't received a 1099 just a display of where the money went. It says on the form I got that "The taxable amount of your withdrawal including any tax withheld, should be included in your gross income for the current tax year." The amount will be reported to the IRS and you will receive a tax reporting form, next January.

I do appreciate the help and I would really rather try and learn this myself instead of paying someone to do it. Although I am using a couple of different websites with tax prep software to check my results and efile.

Posted: 2/1/2011 2:24:33 PM EDT

[#3]

No expert here, but I don't think it's taxable to you. Interest earned in the account after the date of death probably is. Is there a Trust? Schedule K-1.

Posted: 2/1/2011 2:25:48 PM EDT

[#4]

You'll need a schedule K from the estate's personal representative.

Posted: 2/1/2011 2:28:05 PM EDT

[#5]

Quoted:
No expert here, but I don't think it's taxable to you. Interest earned in the account after the date of death probably is. Is there a Trust? Schedule?

All I received is a form that displays the amount that was in my gross payment with the total deductions and what the check amount was for. She died in 2008 when I was 16, and its been a long deal to get the tax situation figured out, and my grandmother handled the estate and she chose the option of doing the bare minimum. Since I didn't receive a 1099 I am thinking that it may be for next years tax year although it says this

"We have completed your request for a total withdrawal, a check is attached." "The taxable amount of your withdrawal, including any income tax withheld, should be included in your gross income for the current tax year." "The amount will be reported to the IRS and you will receive a tax reporting form next January."

Posted: 2/1/2011 2:28:47 PM EDT

[#6]

Quoted:
You'll need a schedule K from the estate's personal representative.

So from my grandmother then since she handled that?

Posted: 2/1/2011 2:35:31 PM EDT

[#7]

Sounds like you wait till "next January" like the form says.
Then you should get an official IRS recognized form (1099-R or something)
that again lists gross, withholding, etc.
DanM

Posted: 2/1/2011 2:37:24 PM EDT

[#8]

Quoted:
Sounds like you wait till "next January" like the form says.
Then you should get an official IRS recognized form (1099-R or something)
that again lists gross, withholding, etc.
DanM

Yeah that is my assumption too. But then I get into the current year tax reporting. Does current year mean, 11 tax year, or 10 tax year( which is what I am working on now).?

Posted: 2/1/2011 2:38:44 PM EDT

[#9]

Quoted:

Quoted:
You'll need a schedule K from the estate's personal representative.

So from my grandmother then since she handled that?

Yes, but now that you gave us more information you need to dig into the tax instructions. You can call the IRS for help, too, but count on being on hold for a long time. You could also call the company that issued the check for more information.

The estate's personal representative (or still called the executor in some states) has a fiduciary responsibility to make sure everything is right while in that role. In Missouri, the probate court provides very close supervision of the entire process except for dealing with the state and Federal taxes. The instruction books are intimidating, even for a fairly simple estate, but there is a pile of paperwork demanded by the IRS. (Missouri was simple.)

If you received the check in 2011, then report it as 2011 income according to the instructions.

Posted: 2/1/2011 2:42:11 PM EDT

[#10]

Quoted:

Quoted:
You'll need a schedule K from the estate's personal representative.

So from my grandmother then since she handled that?

Yes, but now that you gave us more information you need to dig into the tax instructions. You can call the IRS for help, too, but count on being on hold for a long time. You could also call the company that issued the check for more information.

The estate's personal representative (or still called the executor in some states) has a fiduciary responsibility to make sure everything is right while in that role. In Missouri, the probate court provides very close supervision of the entire process except for dealing with the state and Federal taxes. The instruction books are intimidating, even for a fairly simple estate, but there is a pile of paperwork demanded by the IRS. (Missouri was simple.)

If you received the check in 2011, then report it as 2011 income according to the instructions.

I appreciate it buddy. I am trying my best to get this all done myself, but figuring out how financial aid etc. all applies is a bit tough. I figure I better learn now than later. You guys are awesome.

Posted: 2/1/2011 2:52:53 PM EDT

[#11]

On a sucky note it appears that as a college kid who isn't claimed on his parents taxes, and not being 25 I am not eligible for any of the tax credits, and I owe some money.