@shishirshah , presumably you inherited this IRA from your spouse.
This is a bit of an unusual transaction, seemingly permitted by the tax code and regulations, but TurboTax doesn't really accommodate this transaction and I'm not sure that the IRS instructions for Form 8606 anticipate this transaction either. You can get what is probably an appropriate result on lines 4a and 4b of Form 1040 as well as in your conversion basis on TurboTax's IRA Information Worksheet by telling TurboTax No, you did not inherit this IRA from ..., then indicating that you moved the money to another retirement account, that you did a combination of rolling over, converting or cashing out, then indicating the amount converted to Roth. Be aware, though, that this approach only works if neither you nor your spouse had any basis in nondeductible traditional IRA contributions, otherwise TurboTax will commingle the basis on your Form 8606. It's also not clear from the IRS instructions for Form 8606 whether this transaction should appear on your Form 8606, on a separate Form 8606 related to the BDA IRA or on no Form 8606 at all. Doing as I described will put it on your own Form 8606, but it seems to me that it would be more appropriate for it to appear on a separate Form 8606 related to the BDA IRA.
If your spouse had no basis in nondeductible traditional IRA contributions, it would be more straightforward to transfer or roll over amounts form the BDA IRA to your own traditional IRA, then do the Roth conversion from your own IRA. These two separate transactions are well understood and are addressed in IRS guidance.
