Inherited IRA with basis
I inherited a Traditional IRA with basis. Is it accurate that one can’t efile when an 8606 is needed for a RMD? The tax software I am using states you can’t efile. Is this an IRS instruction or a software limitation? This would mean I’d have to mail my return for the next 9 years until the IRA is depleted. Thanks for any clarification.
Permalink Submitted by Alan - IRA critic on Tue, 2023-03-21 23:12
My impression is that IRA basis does not present a problem if the basis is in your own IRA. It does not matter if the distribution is an RMD or not. More likely to be a problem if it’s in an inherited IRA, and very likely to be a problem if you need two 8606 forms, one for owned and another for inherited IRAs.