Retirement tax questions

NJ prorates the basis according to the ratio of unrecovered basis to year end value.

This is the same idea as Form 8606 but differently implemented.

TurboTax supports NJ if you tell TurboTax your remaining original contributions, in this case the owner's original contributions and Inherited IRA year end value.

You must use the step-by-step interview.

 

TurboTax won't support the situation where your IRA has a basis and the Inherited IRA has a basis and a distribution is taken from both in the same year.

 

@NJ99