@CMW38 wrote:
This refers to Form 8606, Line 7. My 2020 software is including a distribution from an inherited IRA on line 7 and it should not be included. I have 2 distributions - one from a traditional IRA and one from an inherited IRA. Both are being reported on Line 7, but only the distribution from the traditional IRA should be.
You appear to be correct. I tested that and it does appear that there is bug that added a 1099-R with a code 4 inherited from a non-spouse to line 7 on the 8606. Inherited 8606's cannot be combined with your own.
I have reported it.
But as a workaround, go back and edit the inherited 1099-R. When it asks if the inherited IRA had a non-deductible basis answer "yes", then recheck the "no" button. That appears to remove the erroneous amount form line 7.
**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.**
