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Retirement tax questions
The total value of your IRAs is needed because you took a distribution from your account and the Form 1099-R probably indicates that the 'taxable amount cannot be determined' or you indicated that there had been non-deductible contributions to the IRA in the past.
If any of your IRA accounts have a mixture of pre-tax and after-tax money (or deductible and non-deductible contributions), then every distribution from any of your IRAs is deemed to be a mixture of pre-tax and after-tax money. Therefore, the total value is needed to determine what portion of the distribution is taxable.
If your wife did not take a distribution in 2022, then there is no need for her total IRA account balance because there is no calculation to be made.
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‎February 14, 2023
6:02 AM