Entering Data on IRA wrksht Part IV : Trad IRA Year-end Value Detail

[skepticbillpayer]

For LIne 18 of IRA Info Wksht, asks for combined values of all trad IRAs ( including SEP and SIMPLE IRAs.)

Does this include any Trad IRAs that I INHERITED?

If not, why not ?

Essentially, I guess I am asking is under what circumstances is this Info used, and why wouldn't that apply to an inherited IRA?

[DianeW777]

It depends. An inherited IRA, if it is not from a spouse, may have different rules than your own IRA. See the various rules on the following IRA page:

• Retirement Topics - Beneficiary

[skepticbillpayer]

One of my Inherited IRAs is from my dad who passed in 2021.  I have a 10 yr withdrawal window.

The other is from deceased spouse; now using my life expectancy.

Seems like I would add the inherited 'spousal' IRA to this worksheet field.

And maybe not the one from my dad, becasue of the shorter window.

Still, I can't tell how this info in this field is ultimately being used by TTax.

That is, Why is TTax asking for this info at all?

Where is it being used?

And if the 10 yr Inherited IRA is handled differently, where in TTax is that being tracked and managed?

[RogerD1]

For an inherited spousal IRA, you had the option of keeping it as an inherited IRA and use your own life expectancy - OR - roll it over into your own account and treat it as your own account.  It sounds like you elected the first option of keeping it as an inherited IRA.

The need for knowing the total value of the IRA accounts is used to determine the taxable amount of accounts that have some contributions that were non-deductible.  The total value of your IRAs will not include the value of inherited IRAs for this calculation.  If the inherited IRA accounts have non-deductible contributions in them, the value of those accounts will be used separately for purposes of calculating the non-taxable amount of the distribution.