The $4,000 of basis in nondeductible traditional IRA contributions is not permitted to be distributed separately from the rest of your traditional IRAs. Instead, the law requires that the $4,000 be distributed gradually in proportion to the overall value of your traditional IRAs. The last of the $4,000 won't be (and is not permitted to be) distributed until that last amounts have been distributed from your traditional IRAs.
Yes, you are required by law to enter your year-end value in traditional IRAs on line 6 of Form 8606.
