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Form 8606 - Value to use for Line 6 Total IRAs
I started receiving fixed income payments from my IRA annuity in 2020. I am 67 years old. I also withdrew funds from my Traditional IRA. Since my Traditional IRA includes nondeductible contributions that were made for a few years in the early 2000s I am filling out form 8606 to determine the taxable and nontaxable portions of my 2020 IRA income. I was able to enter all the needed information from my old 8606 form that represented the sum total of my nondeductible contributions - no problem since I submitted the required forms at the time. My dilemma is what value to include on line 6 of form 8606 (or in response to the same question asked by the TurboTax program that fills out the form for me)--that is: Enter the value of all your traditional, SEP, and SIMPLE IRAs in 2020. Seems like a simple question. I know what to plug in for my Traditional IRA. But what value should I add in for my annuitized IRA annuity? The amount I paid for it? Or the value from form 5498 that the insurance company is sending to the IRS that is much larger than what I paid for it? The annuity is a guaranteed lifetime income for 2 that I bought in 2014. Payment were deferred to 2020. My payments are fixed for life. The value on form 5498 does not represent income I will ever receive. Or do I need to add the IRA annuity balance at all?
Any thoughts would be appreciated.