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Retirement tax questions
I assume that you mean to say that your wife did not make any IRA distributions in 2019.
1. When entering the 2019 Form 1099-R reporting the distribution of the RMD, answer No, it was not inherited.
2. Go to the Traditional IRA contributions section under Deductions & Credits, mark the Traditional IRA box, Make any entries regarding your current year contributions, answer Yes when asked if you made nondeductible traditional IRA contributions, then on the Let's Find You IRA Basis page make sure that your own IRA basis is shown correctly and click the EasyGuide button on that page. Proceed to where you can click the box for "I inherited a traditional IRA before 2019 from a spouse who died" even though you inherited it in 2019, then enter the amount of basis that transfers to you from your wife, the amount from box 14 of her 2018 Form 8606. TurboTax will prompt you to prepare an explanation for this adjustment to your basis where you can also explain that the distribution reported on the Form 1099-R satisfied your wife's 2019 RMD, no need for a separate letter that would require you to mail your tax return instead of e-filing.
3. Your 2019 Form 8606 will be prepared normally. Your 2019 year end value in traditional IRAs will include the balance of the IRA that you inherited from your wife and treated as your own since it is now your IRA.
4. The balance used on line 6 of Form 8606 is the year-end balance of your traditional IRAs.