@mlgillette wrote:
After another 90 minutes on the phone with TurboTax Support, they agreed that the inherited IRA withdrawal should NOT be included on 8606. They walked me through an odd process to reset some values, using step-by-step, on the 1099 for this withdrawal, and it dropped off the form. Thanks to all who contributed.
As I said above, it is not included on *your* 8606. If the inherited IRA has it's own non-deductible basis then it must be reported on a separate 8606 for the inherited IRA.
If the inherited IRA has no non-deductible contributions at all and no basis the it is not reported on ANY 8606 at all.
The basis on an inherited IRA cannot be combined with your own IRA basis.
IRS pub 590B
quote
IRA with basis.
If you inherit a traditional IRA from a person who had a basis in the IRA because of nondeductible contributions, that basis remains with the IRA. Unless you are the decedent's spouse and choose to treat the IRA as your own, you can't combine this basis with any basis you have in your own traditional IRA(s) or any basis in traditional IRA(s) you inherited from other decedents. If you take distributions from both an inherited IRA and your IRA, and each has basis, you must complete separate Forms 8606 to determine the taxable and nontaxable portions of those distributions.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
