Inherited IRA’s and IRS Form 8606 lines 6 and 7
I have multiple IRA’s :
Traditional IRA with non deductible contributions, SEP, Roth and 2 inherited Traditional (non-spousal prior to 2019)
In 2021 I converted a portion of my traditional IRA to a Roth and need to fill out IRS tax form 8606.
Are inherited traditional IRA’s included in line 6? (Value as of 12/31)
Are RMD’s from inherited Traditional IRA’s included in line 7? (Enter distributions)
Thank you
Row
Permalink Submitted by Alan - IRA critic on Wed, 2022-03-30 22:21
Your own IRA and separately you inherited IRAs might hold IRA basis, but this basis is not combined except for your owned IRAs. If you have basis in your own IRA, your 8606 reporting distributions from your own IRA does not include the value of any inherited IRAs. Likewise, if your inherited IRA has it’s own separate basis, that would be dealt with by a separate 8606 for the inherited IRA, entirely separate from your owned IRAs. The only values shown on any line are for distributions from your TIRA or SEP IRA, not from any other accounts unless you also took a distribution from an inherited IRA with it’s separate basis and separate 8606.