Entering 1099-R for inherited IRA, questions at the end about value of "all IRAs"

[DerringDo]

The Man has taken his first RMD in 2025 for an IRA inherited from his brother.  When entering the 1099-R it is all clear, until one gets past the actual entry, and TurboTax starts to ask questions.

Answer "no" to prior disaster distributions etc.

Then 2 questions about basis for "traditional IRAs" and the "total value of all traditional IRAs."

He has no basis in the inherited IRA (but some amount in his personal IRA, which he has not yet begun to take.)

Am I correct in answering "no" to the non-decuctible contribution question, and merely entering the value of the inherited IRA, not the sum of all of his IRAs? 

I find the wording of these 2 questions confusing.  Appreciate any/all help.

[jtax]

I would suggest not entering the FMV of the Inherited IRAs. See if that generates an error. Or do so, but carefully look at the 8606 generated for your non-inherited IRAs with basis to ensure that the FMV of the inherited IRA is not being included. TT does not support 8606 forms for inherited IRAs. It can only track one total FMV and basis per taxpayer.

What's going on is that the return of basis for IRA's does not come out first, but rather is a portion of each $ withdrawn. So, say, with a basis of $1000 and a prior year 12/31 FMV of $100,000 and a withdrawal of $5,000, only $50 of the basis is returned (1% of $5,000) ($4950 taxed). 

The denominator is the FMV of all of the IRA's of the same ownership type as the one with basis. Inherited IRA's are treated separately (as are Roth IRAs or a spousas IRAs). So you can see you don't want the Inherited IRA to count.

[DerringDo]

I appreciate the post.  We don't have to submit an 8606 as the basis for that IRA hasn't changed in years, and he's not adding to it.

The inherited one is 100% taxable.  I've said no basis, and used the value of just the inherited, since that's the only one we had an RMD from.  I'll see how that flies.

Thanks for the answer.