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Why was RMD from a non-spousal inherited IRA not included on form 8606, line 7? I included this nontaxed inherited IRA in the value of all my yr. end trad. IRAs line 6
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June 6, 2019
12:20 PM
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Retirement tax questions
The total amount of this RMD seems to be added to the result from line 18 , to be included on line 15b of my 1040. Why wouldn't it be included on form 8606? and if not, should I subtract the yearend value it from line 6 on the 8606 form?
June 6, 2019
12:20 PM
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Retirement tax questions
"I included this nontaxed inherited IRA in the value of all my yr. end trad."
You should know that inherited IRAs must be treated separately from your own traditional IRA(s), so don't do that.
And why do you think it is non-taxed.?
TurboTax does not support Form 8606 for an Inherited IRA with a basis.
June 6, 2019
12:20 PM
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Retirement tax questions
I really don't know if the inherited IRA was non-taxed, but I don't have any way of finding out for sure. thanks for your reply.
June 6, 2019
12:20 PM
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Retirement tax questions
fanfare is correct - You cannot, by law, combine your personal IRA 8606 basis with the basis (if any) in a non-spouse inherited IRA. They must be kept separate on a stand-alone 8606 that cannot be e-filed with TurboTax. The inherited IRA 8606 must be completed manually and attached to a mailed tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
June 6, 2019
12:20 PM