In a Fidelity account I have one Traditional IRA (with an after-tax, nondeductible contribution basis) and one Rollover IRA (with no nondeductible contribution basis). I withdrew all of the RMDs for both Fidelity accounts from only the Rollover IRA (as Fidelity allows you to do). Since I did not withdraw from my Traditional IRA I assumed that the basis would be unchanged and the RMD total from the Rollover account would be 100% taxable income. But when I provide TurboTax with my Traditional IRA basis, it is reducing that basis and reducing the taxable income amount for my RMD, even though I did not withdraw anything from the Traditional IRA. Should I omit my Traditional IRA info from TurboTax to prevent it from adjusting the basis, or is my Traditional basis automatically reduced because of the Rollover withdrawal, even if I did not make a withdrawal from that account? (Not sure if this is a factor, but I also have Rollover IRAs with Vanguard and T Rowe Price and separately withdrew all the required RMDs from those accounts. So if the Trad IRA was $5 and the three combined Rollovers were $95, but I withdrew a 5% RMD for all $100 only from the $95 Rollover accounts, am I still required to reduce the basis in the $5 Trad account, even though I did not withdraw from it?) As always, thank you for any help, and if there is an IRS pub that explains how Trad + Rollover IRAs are treated for RMDs and basis adjustment I would appreciate that!
