For the question of what the value of our IRAs were on Dec 31, 2021, even if we are just now contributing to traditional IRAs for the first time, how do I answer? Previously I had said 0, but just changed it to $xxxx which is what I am opening up an account with. Should it be 0? I think this may have generated the form 5329-S.
Also, I am a non wage earning spouse, and it shows a form for me, but not for my husband. Why is this form generated? There is no penalty showing. We are both over 59.5. We decided to contribute to traditional IRAs now to save on our taxes due this year.
My situation is that my mom passed in September. I took a lump sum instead of rolling her IRA into one then. So I was sent a 1099-R. I am unclear as to whether this is an "inherited IRA" because I did not put the money into an IRA when I got it. I just deposited it, (but had federal and state taxes withheld) and am taking a hit on my taxes by it increasing our taxable income.
I am not sure if that is why I may have the form, and my husband doesn't.
