Form 8606, line 7. Can I report $0 if I did not withraw from my Trad IRA account, but met the RMD requirement from my Rollover IRA account?

[DH21]

Line 7 says to report distributions from Trad IRAs but not Rollovers. I have both a Trad IRA (with a post-tax, nondeductible basis) and a Rollover IRA (with no post-tax, nondeductible basis). Fidelity allows me to simplify the RMD withdrawals by scheduling the total annual distribution amount (for both IRAs) from just one of them. So the RMD required for the Trad IRA balance was distributed, but it was distributed from the Rollover IRA. So I think I should be able to enter $0 on Line 7, but TT has automatically populated this line with the total that was withdrawn from the Fidelity Rollover IRA + a separate Vanguard Rollover IRA distribution. This seems incorrect. Line 7 has ALL of my IRA distribution totals, and all of them are from Rollover IRAs, while $0 was distributed from the Trad IRA. Any clarification on this would help. I am trying to keep deferring the Trad IRA withdrawals and covering the RMD from the Rollover account, but not if that is somehow disallowed or illegal. Thank you!

[dmertz]

Your rollover IRAs are a traditional IRAs, so distributions from those IRAs, distributions that were not rolled over, must be included on line 7.  TurboTax has correctly included the distribution on Form 8606 line 7 automatically.

Your basis in nondeductible traditional IRA contributions does not reside in any particular one of your traditional IRAs.  It applies to an individual's traditional IRAs in aggregate, including the individual's rollover IRAs.  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.

[fanfare]

don't confuse the descriptive account terminology  "Rollover IRA" with the  trustee-to-trustee action called "rollover". Form 8606 is referring to the latter.

"I am trying to keep deferring the Trad IRA withdrawals"

This is a recordkeeping peculiarity that otherwise means nothing.

@DH21 

[DH21]

Thank you, this is very helpful. Injecting the "rollover" terminology in 8606 instructions was baffling to me, but I get it now. Your help is greatly appreciated!

[DH21]

I very much appreciate your help and knowledge. As I said for another response, including the "rollover" terminology in the 8606 instructions was obviously confusing me but I think I now understand that what used to be a Trad IRA in my pre-rollover life is now just the oldest Trad (individually created) IRA in my more complicated Trad (individually created) + Trad (rollover) portfolio of multiple IRAs. And I thought taxes in retirement would be so much simpler! Silly me!!

[fanfare]

If you have several accounts, all invested similarly , you can rollover those accounts to one custodian.

This simplifies things.

Pick the custodian that offers the best web interface, customer service, low or zero fees etc.

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I too have several accounts that I keep separate for sentimental reasons.

@DH21