Line 7 form 8606 the amount includes income from a pension. The IRA/sep/simple box is not checked. Should I delete the pension info, and if so, how?

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The amount in line 7 does not include distributions from to inherited (BDA) ira's originated by my parents.  Please confirm that this exclusion is correct.  I believe that the only distribution that should be included in this line are ira's funded by myself.

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[dmertz · Accepted solution]

BDA IRAs are to be treated independently of your own IRAs.  Distributions from traditional BDA IRAs will have code 4 in box 7 and will have the IRA/SEP/SIMPLE box marked.

If your BDA IRAs have basis in nondeductible traditional IRA contributions, independent of TurboTax you must prepare a separate Form 8606 for the BDA IRAs you inherited directly from a particular decedent.  TurboTax will only ask you to enter the resulting taxable amount of the distribution from that BDA.  You'll then have to mail your tax return and include the separately prepared Form 8606.

TurboTax will include on line 7 of Form 8606 only those distributions from traditional IRAs that do not have code 4 in box 7 and have the IRA/SEP/SIMPLE box marked.  If you see an amount on line 7 that shouldn't be there, delete the corresponding Form 1099-R from TurboTax and reenter it.