Now What 2 1099Rs one withdrawl.

[ljwalters]

Clients son Died. Client inherited sons Roth IRA. Client asked the Brokerage firm if he could roll it over to an education IRA for granddaughter. Brokerage firm later notified client they could not do this without client taking the money first then opening the Education IRA separately. OK done. Now Client receives 2 1099R for the one Roth IRA. One is coded Q the other T. What gives it appears the client received twice the amount. .

One of the 1099Rs is generating the 8606 and asking for basis, this I assume would be the son’s basis.

One is generating the 5329 and asking contribution amounts for 2011.

Client says he never opened a Roth in his name and never had one.

He has called the brokerage firm and they of course relay the usual “ask your tax professional”.

Does this sound right to you and how to complete the 5329 the amounts were 10,739 and 10,814. (Lost 100 during 2^nd transfer) This would be too much for a single year contribution.

HELP

[Kea]

Are both in client's name? Could one be the transfer from the son to the client & the other for the withdrawal?

[ljwalters]

That is what I thought but the client says he signed no documents to open a ROTH, everything happened over the phone.

even if it was a transfer from son to father at death, how would i code those two forms.

Actuall one has recipient as

Client

Bene of son ((this one coded Q)

the other says

Client (bene) ((this one coded T)) This seems to be the one pulling the two forms both 5329 and the 8606.