Inclusion of traditional IRA in preparation of Form 706

Submitted by Richard Lee on Wed, 2014-09-10 20:40

Is the amount in a traditional IRA includable in the preparation of Form 706?
No separate line is provided for it. IRA’s under section 408(a)(ROTH)are excluded, but instructions for traditional IRA’s are vague.

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Permalink Submitted by Bruce Steiner on Wed, 2014-09-10 21:09

Yes. The lawyer preparing the estate tax return will know how to show it. Roth IRAs are also included in the gross estate.

Permalink Submitted by David Mertz on Thu, 2014-09-11 01:54

rleecpa, you are confusing 408(a), which defines individual retirement accounts in general, with 408A, which defines Roth IRAs. IRAs, both traditional and Roth, are reported on Form 706 Schedule I, Annuities. See the note at the top of Schedule I:

Generally, no exclusion is allowed for the estates of decedents dying after December 31, 1984 (see instructions).

Permalink Submitted by Adam Margolis on Thu, 2023-03-16 19:02

Do we report the entire account as one entry on Schedule I of Form 706 or do we need to list each stock separately? If entire account, I presume we should list each brokerage IRA account separately to avoid confusion. I see no benefit of listing each stock or investment individually…. please advise on the proper way to show this… Thank you!

Permalink Submitted by Bruce Steiner on Sat, 2023-04-08 21:03

Different lawyers (or, as a practical matter, different paralegals) have different ways of showing accounts. Some show each security on the form. Others show the total for the account on the form and attach an exhibit showing the securities and their values.