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Level 3
posted Mar 20, 2025 6:09:32 PM

Calculating the taxable portion of IRA distributions when you have a traditional and an inherited IRA

I made post-tax contributions to my traditional IRA, so I have an IRA basis. I also inherited an IRA from my mother. She did not make any post-tax contributions to her IRA. I have had to take distributions from her IRA. Are the two IRAs merged together for purposes of calculating the taxable and tax-free percentages of distributions?  Or would distributions from her IRA be 100% taxable?  Thanks. 

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1 Best answer
Expert Alumni
Mar 21, 2025 6:59:36 AM

Yes, the one inherited would be 100% taxable.

3 Replies
Level 15
Mar 20, 2025 7:27:20 PM

these two IRAs must be treated separately.

 

TurboTax can't handle the case where both IRAs have a basis.

In your situation, that does not concern you.

 

@davenj 

 

 

Level 3
Mar 20, 2025 8:02:25 PM

So, are the distributions from the inherited IRA 100% taxable?   

Expert Alumni
Mar 21, 2025 6:59:36 AM

Yes, the one inherited would be 100% taxable.