Form 8606, line 6. Does this amount include all self + spouse non-Roth IRA totals, even though only self has a Trad IRA basis for line 2?

[DH21]

I have a "Trad" IRA (with nondeductible basis) + Rollover IRA. Spouse also has a Rollover IRA. (Neither of the Rollover IRAs has a nondeductible basis, the applicable post-tax funds were moved into Roth IRAs.) If married filing jointly, do I include all 3 year-end IRA holdings on line 6? I assume so, even though only one of the three has a basis.

What is confusing is that Line 6 includes Trad + Rollover balances (presumably from both people), but Line 7 seems to only require Trad distributions. And TT by default is filling Line 7 with both the Trad + Rollover distributions from me, the spouse who holds the Trad IRA with a nondeductible basis. That seems incorrect.

[dmertz · Accepted solution]

A Form 8606 applies only to a particular individual, not to an individual and their spouse.  Only the year-end value of your own traditional IRAs is to be included on Form 8606 line 6.  Where Form 8606 uses "you" or "your," it's referring to the individual to whom the form applies.

Your basis in nondeductible traditional IRA contributions does not reside in any particular one of your traditional IRAs.  It applies to your traditional IRAs in aggregate, including your own rollover IRA(s).  Because your traditional IRAs are treated in aggregate for these purposes, the taxable result is the same no matter which of your traditional IRAs you take distributions from.

It seems that your wife does not have any basis in nondeductible traditional IRAs, so she would not have any reason to file Part I of a Form 8606.

[DH21]

Thank you so much. That's very clear. Much appreciated!