@t231 wrote:
Thanks @AmyC!
If I am requesting a transcript I would have to ask for every yr that acct holder had the IRA. Is that correct?
Also, what would be a scenario where someone chooses to have a basis/8606?
And in the event I found out they did, I would then have to amend all the yrs I didn’t use the basis?
1) You only need the last filed 8606, but an 8606 is only filed if there was a distribution from the IRA or a new non-deductible contribution was made.
2) Usually income too high to deduct when covered by a retirement plan at work. Otherwise there is little reason to make a nondeductible contribution to a Traditional IRA when a Roth IRA is always non deductible an has many other advantages.
3) Yes, if you had other distributions.
It is unusual for an inherited IRA to have any meaningful basis that would make more then a few dollars savings.
**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.**
