Does inherited IRA get aggregated?

Forum|Forum|4 years ago
January 22, 2022
1 reply
2 views

I am taking an RMD on traditional IRA.

I am taking an RMD on inherited IRA from a parent.

1) TTax asks value of "traditional, SEP & Simple IRA" at end of year. There is no mention of inherited. Is the Inherited value to be included in the entry of value?

2) Can the RMD for Inherited IRA be aggregated with my Traditional?

MaryK4

Level 15

Amounts in IRAs that an individual holds as a beneficiary of the same decedent and which are being distributed under the life expectancy rule in section 401(a)(9)(B)(iii) or (iv) may be aggregated, but such amounts may not
be aggregated with amounts held in IRAs that the individual holds as the IRA owner or as the beneficiary of another decedent. 26 CFR 1 § 1.408–8 (4–1–11 Edition)

@Username5

[Edited 1/24/22 I 2:37 pm PST]

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fanfare

Level 15

@Username5 @MaryK4 Expert

This is just so completely wrong and bad advice.

@Username5

You must treat an inherited IRA separately from all other IRAs of your own.

If you inherit another IRA you must treat that one separately from the first one.

@MaryK4

You need a refresher on IRA distributions.

Username5Author

Level 5

Thank you. I was going to post a followup but you sorta answered this for me.

The inherited TIRA is based on a factor of my age at my parents death, prior to my age of first RMD.

Since my inherited TIRA is calculated at a different drawdown than my personal TIRA it doesn't make sense to lump them together. I don't know how the IRS ensures that the numbers are correct but if they take the prior year return Dec 31st value to check, it would not work out correctly.

So unless I and @fanfare are incorrect, I will not lump my inherited TIRA into my own TIRA for purposes of year end value. TTax does not ask the value of my inherited TIRA at EOY so I don't know how the IRS verifies the reporting.