Hi,
I took my first 401K and IRA distributions in 2024. The IRA has non-deducible contributions tracked on Form 8606 (last used in 2005). The 401K had after tax contributions. The IRA RMD was distributed to me in 2024.
The 401K RMD was fully met by an NUA transaction on the ESOP portion of the 401K. Per NUA requirements the 401K balance, outside of the ESOP, was was rolled over into a Traditional IRA (with after tax contributions). So I now have a Traditional IRA with non-deductible contributions and a Rollover Traditional IRA with after tax contributions.
My latest Form 8606 (from 2005) does not have any cost basis in it for the after tax part of the Rollover IRA. My research implies you don't report the cost basis of a Rollover IRA until the 1st year you get a distribution and I didn't get a Rollover IRA distribution in 2024 (it was covered by the 401K ESOP distribution).
TTax is asking me for the total of all IRAs to determine the taxable amount of the 2024 IRA distribution. Do I add the two IRAs together? It seems incorrect as Form 8606 has no cost basis yet for the Rollover IRA and there was no distribution from this IRA in 2024.
Just as side note, we live in FL in the winters and my historical Form 8606 was at our residence in NY. Therefore I filed an extension for this years return.
