Form 8606

[Pie in the sky]

When I retired, I took a lump sum distribution of my pension income.  The income was rolled over to an annuity to avoid paying taxes on the distribution of the income as well as for investment purposes.  I have since learned that the income in the annuity is invested in a traditional IRA.  My 401K account was also rolled over to a mutual fund, again for the same reason.  The income from the 401K is also in a traditional IRA but it shows that it is a Rollover IRA. 

For the purpose of filling out Form 8606 my questions are:

    - For Part I line 6, do I include the year-end sum total of all my traditional IRAs in that line or only the total of the IRAs that I have which are subject to Nondeductible Contributions to Traditional IRAs?  (The IRAs for the pension income and the 401K rollover income were never part of Nondeductible Contributions to Traditional IRAs.)

    - For Part I line 7, do I include the total distribution of income from my IRAs taken in the tax year 2022, including the distribution taken from the IRAs for the pension income and the 401K rollover)?  All income distributed from the IRAs was due to RMD.

[dmertz]

"For Part I line 6, do I include the year-end sum total of all my traditional IRAs in that line or only the total of the IRAs that I have which are subject to Nondeductible Contributions to Traditional IRAs?"

All of your traditional IRAs.  Your basis in nondeductible traditional IRA contributions is not associated with any particular IRA, regardless of which IRA received the contribution which was nondeductible.  For tax purposes, all of your traditional IRAs, including the rollover IRA and the IRA annuity, are treated as a single account.

"For Part I line 7, do I include the total distribution of income from my IRAs taken in the tax year 2022, including the distribution taken from the IRAs for the pension income and the 401K rollover)?  All income distributed from the IRAs was due to RMD."

When you say "pension," I assume that you really mean the IRA annuity.  Nothing distributed from an IRA is a pension.  Because they were RMDs and therefore not eligible for rollover, any distributions from the IRA annuity and the Rollover IRA that you received in 2022 are includible on line 7.