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New Member
posted Jun 4, 2019 5:42:13 PM

Are 'Benecifial IRA's' of which I have two; included in the yearly IRA total?

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1 Best answer
Level 15
Jun 4, 2019 5:42:14 PM

Nowhere in TurboTax do you enter the year end values of any inherited IRAs.

If these inherited/beneficiary IRAs are traditional  IRAs and the deceased had basis in nondeductible contributions, you must manually prepare Part I of a Form 8606 to calculate the taxable amount of any distributions from the inherited traditional IRA, separate from any Form 8606 in your name.

If you receive distributions from an inherited Roth IRA and the distribution is not a qualified distribution because it has been less than 5 years since the beginning of the year for which the deceased made a Roth IRA contribution, you must manually prepare Part III of a Form 8606 to calculate the taxable amount of any distributions from the inherited Roth IRA, separate from any Form 8606 in your name.

If a Form 8606 is needed for either of these cases, you'll only enter the taxable result into TurboTax and you'll need to paper-file your tax return so that you can include the manually prepared Forms 8606.

2 Replies
Level 15
Jun 4, 2019 5:42:14 PM

Nowhere in TurboTax do you enter the year end values of any inherited IRAs.

If these inherited/beneficiary IRAs are traditional  IRAs and the deceased had basis in nondeductible contributions, you must manually prepare Part I of a Form 8606 to calculate the taxable amount of any distributions from the inherited traditional IRA, separate from any Form 8606 in your name.

If you receive distributions from an inherited Roth IRA and the distribution is not a qualified distribution because it has been less than 5 years since the beginning of the year for which the deceased made a Roth IRA contribution, you must manually prepare Part III of a Form 8606 to calculate the taxable amount of any distributions from the inherited Roth IRA, separate from any Form 8606 in your name.

If a Form 8606 is needed for either of these cases, you'll only enter the taxable result into TurboTax and you'll need to paper-file your tax return so that you can include the manually prepared Forms 8606.

Level 15
Jun 4, 2019 5:42:17 PM

On the form 8606 yes.