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
CatinaT1
Expert Alumni
Mar 21, 2025 6:59:36 AM
Yes, the one inherited would be 100% taxable.
3 Replies
fanfare
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.