My siblings and I inherited a traditional IRA account from our deceased brother. He funded the IRA with after-tax money in 2008. Unfortunately, the executor shredded all but the last 3 years of my brother's tax returns, so we do not have any forms 8606 to demonstrate the basis in the IRA account.
The money was originally in an employer savings plan (traditional 401-k) and was moved to a traditional IRA account with an investment company. If we are able to obtain documentation from the custodians (his employer and the investment company) that show that the account was funded entirely with after-tax money, and that he took no distributions in his lifetime, will that demonstrate the basis to the satisfaction of the IRS? Or, must you have the forms 8606 no ifs, ands, or buts?
