Until recently I have had a single IRA account and each year do an RMD
withdrawal from it. Because of the way I had made my IRA contributions,
the IRA has a small basis. Each year part of the RMD is considered part
of the basis. So the basis is reduced by that part of the RMD
withdrawal and also that part of the RMD is not taxable. I know how to
do all that and TurboTax has been in sync with my calculations each
year.
However this year I have divided my IRA in two, one IRA managed by a
broker and the other managed by me. I have been told I can take the RMD
from either or both accounts. The total RMD sum just must equal what
would be required if the total IRA year-end funds had been in a single
account. That sounds easy and hopefully Turbotax can handle it easily.
My question is about handling the basis for the now split IRA. Can I
handle the basis calculations as if the two IRAs were still one, summing
the two IRA year-end values for the basis calculation, as for the RMD
calculation? How does TurboTax handle multiple IRAs for such RMD and
basis calculations? I know I will get two 1099-Rs and presumably will
have to enter both into TurboTax. The above calculations seem to
require a virtual merger of the two 1099-Rs.
Or is this going to be a lot more complicated (hopefully not) and the
basis has to be apportioned across multiple accounts or put in just one
account? If so, how does TurboTax handle that?
