Many thanks to the three of you who replied, @KrisD15, @fanfare and @jtax. I found helpful information in all three replies. I haven't tried making any changes to my TT yet, and I'm trying to digest all the good info you provided. Let me ask for a few more clarifications.
@KrisD15, you asked:
Are you filing Married Filing Jointly for 2021?
Did / Do you need to take an RMD for your late wife for 2021?
Are you reporting all IRA accounts as your own in the TurboTax program?
Yes, I am filing Married, Filing Jointly for 2021. Yes, the Financial Institution maintaining the IRA sent the 2021 RMD to me, using my SSN and using code 7 on the 1099-R for the distribution. Yes, I have identified both my original IRA and her IRA as my IRA's on TT.
@fanfare, you asked:
Whose SSN is on the 1099-R ?
My SSN is on the 1099-R. And you said:
Since you elected to treat it as your own (assuming the custodian retitled it), that basis is now added to your prior basis.
Since I now have two separate IRA's, I thought I needed to keep them separate and retain the respective Basis for each IRA.
@jtax, you said:
If it is not titled as inherited (i.e. is only in your name) then do NOT tell TT that it was an inherited account because inheriting from a spouse is special. You can consider it yours and not inherited.
It is not titled as inherited, but I did tell TT it was inherited, because didn't know better. I will change that when I redo the 1099-R's in TT.
Further, you said:
Look at your joint 2020 return for Form 8606. There should be one with your wife's name/SSN at the top. Line 14 will tell you what her non-deductible "basis" is that carried forward to 2021
Yes, I have the 8606 from 2020, and it clearly shows the remaining Basis for both IRA's.
And, you said:
If the 1099-R is not in her name or for future years, add the non-deductible basis to your non-deductible basis and tell TT about it when asked. In future year's the 8606 will be in your name/SSN and will include both your basis and your wife's because from now on it will all be considered yours.
How do I add the amounts shown as remaining Basis in last year's 8606. I expected TT to do that automatically, but it didn't (perhaps because I told TT that it was an inherited IRA).
Also, please clarify what you meant by "and tell TT about it when asked." Tell TT about what?
Okay, I think I've provided additional specificity to my situation. If you'll be so kind, please provide additional input to help me go forward. Thanks.
