The non-deductible basis of my IRA changes even though my RMD is taken only from my rollover IRA. Should the basis of the non-deductible IRA change in this case?

[anthonywolf]

I have an IRA account that has deductible and non-deductible contributions. The non-deductible basis is $14000.
 I also have a rollover IRA with deductible contributions
When I took my RMD I withdrew the funds entirely from the rollover IRA. It seems that all of this RMD should be taxable.
It seems that the non-deductible basis for next year should remain at $14000 since none of the  RMD came from the IRA.
 Turbotax combines the year end totals for the IRA and rollover IRA and treats the RMD as being withdrawn from the combination reducing the basis from the initial $14000.
Is this correct?

[Rachel_W · Accepted solution]

Yes, this is correct.  When calculating the non-taxable portion of your RMD on Form 8606, ALL of your IRA Accounts (Excluding Roth) are taken into account regardless of whether they are made up of Deductible or Non-Deductible Contributions.

For more information, you can click this link to see IRS Pub 590, Distributions from IRA's starting on Page 13: https://www.irs.gov/pub/irs-pdf/p590b.pdf.

[macuser_22]

TTRachelW is correct.   For tax purposes you only have one Traditional IRA which is the aggregate total of all existing IRA accounts.  The non-deducible "basis" applies to the overall aggregate IRA total.   It also does not matter which IRA account or accounts the RMD is taken from since the total years RMD amount is based on that aggregate total value as of the end of the previous year.  

 [Each IRA account custodian will only calculate the RMD for the account that they control and know about, but the total of all individual IRA account RMD's should be equal to the total years RMD that you can withdrew from any account or accounts.]

[anthonywolf]

Many thanks for your helpful replies!!