Solved: Re: Form 8606 Inherited IRA

becky5000 · Feb 10, 2024 1:05:06 PM

Hi,My mother passed away in 2023 and I inherited her IRA which had a basis. While going through the TurboTax questions, it asks for the IRA value on 12-31-23. This IRA was transferred to me before the end of the year so the value in her account is zero, but it has a positive value in my account.a. If I enter zero, it applies all of the remaining basis to her 2023 tax return.b. If I enter the value in my account at the end of the year, it only applies a small amount to her tax return. I was of the impression that the basis carried over to my inherited IRA. It is not clear how to answer the 8606 questions. There are also 2 other fields called Outstanding Rollovers and Outstanding Recharacterizarions. Do these somehow apply in this case?She had taken her RMD prior to her passing. Thanks for your help

Form 8606 Inherited IRA

Thanks for your reply. My situation was different. The problem was how Turbo Tax worded the question. They asked if I had inherited the IRA, which I had. But it is not an 'Inherited IRA' as it was from my husband and had become my IRA. But by answering the question YES I was lead down the rabbit hole of handling an Inherited IRA! It took awhile to discover what the problem was. When I answered No to the initial question all was resolved.