- By operation of law, you inherited the IRA in 2022.
- What is the code in box 7 of the Form 1099-R? A distribution from an inherited IRA would be indicated by code 4 in box 7 of the Form 1099-R. If the code is 1, 2 or 7, the distribution is being reported as coming from your own IRA, not an inherited IRA maintained for you as beneficiary.
- [You can ignore this because in 2023 you assumed ownership of your wife's IRA. See my following response regarding how to adjust your basis to include the basis acquired from your wife.] TurboTax does not support Form 8606 for inherited IRAs, only for your own IRAs. You have to prepare and maintain Forms 8606 for an inherited IRA outside of TurboTax and provide TurboTax with the taxable amount calculated on that form. You would also need to include this Form 8606 with your mailed tax return. Unless you choose to treat the inherited IRA as your own, the basis in the inherited IRA must be kept entirely separate from your own traditional IRAs.
‎April 12, 2024
1:44 PM
