Two Different Account Numbers & 2 different 1099Rs same decedent

Submitted by Cheryl Van Beek on Wed, 2017-03-29 20:17

A non spouse beneficiary of inherited traditional IRA is only completing 8606s this year for IRAs that were inherited (none for her own IRAs) because beneficiary isn’t of age to take RMDs from her own IRAs, nor is she making contributions to a Traditional IRA for 2016.

The 1099R for the decedent’s 2015 RMD taken in 2016 by Beneficiary lists both the decedent and the beneficiary’s name and the other 1099R (for Beneficiary’s 2016 RMD taken from the new account number of the inherited IRA, as mentioned previously, just lists the beneficiary’s name, SSN, IRA & Death Distributions boxes checked.)

So Beneficiary can just write across the top of one (standard) 8606: the two different account numbers from the two respective 1099-Rs from the IRA (original from which Year of Death 2015 RMD for decedent was taken in 2016 by Beneficiary and the Inherited Account number for the new inherited account from which Beneficiary’s 2016 RMD was taken)?

It will be a paper return, but I’m confused, there’s a different 8606 form for inherited IRAs?
Thank you.



Submitted by William Tuttle on Wed, 2017-03-29 20:29

You only need to file Form 8606 to report contributions and/or distributions of non-deductible basis. Since Interited IRA/non-Inherited IRA (basis and balalnces) are maintatined seperately, if required seperate Form 8606s are required.  If the Inherited IRAs have non-deductible contributions then an Inherited IRA Form 8606 is required. If the non-Inherited IRAs have non-deductible contributions then a non-Inherited IRA Form 8606 is required. If and only if they both have basis are two Form 8606s required. There is no different form, you just indicate “Inherited IRA” either by tax software or written if manual on the appropriete Form 8606

Submitted by Alan - IRA critic on Wed, 2017-03-29 22:34

  • There were earlier threads posted indicating that this beneficiary inherited 3 IRA accounts, one as a successor beneficiary. There was basis inherited as both a designated beneficiary and a successor beneficiary, but this beneficiary did not have any basis in their own IRA. There would be two different 8606 to be filed, one addressing the basis in the successor beneficiary IRA and the other for the designated beneficiary IRA. These must be kept separate with basis recovery using their respective basis per line 14 of the prior year 8606.
  • However, just because there may have been two 1099R forms for one of these IRAs, the basis applies equally to each. This is the same situation that would apply if the custodian was changed by TtoT transfer with distributions taken from the former account and the current IRA for that particular plan. In summary, if I have the underlying situation correct, there would be two 8606 forms included, but one of them would apply to more than one 1099R.
  • This was the former thread I am drawing from:
  • “In this case: a non-spouse Beneficiary inherits 3 Traditional IRAs; two are at the same custodian, but one of those two is inherited as a sole designated beneficiary and the other is inherited as a sole successor beneficiary; the third IRA inherited as a designated beneficiary is with a different Custodian; additionally, in 2016 two distributions were taken by the inheriting beneficiary from this account because one distribution was taken to satisfy the deceased’s RMD for 2015 (that was not cashed before passing away, estate hadn’t opened yet and custodian reissued that 2015 RMD back to deceased’s account, correcting 1099-R etc. beneficiary is also sole beneficiary of the estate anyway), so the beneficiary took that distribution as well as her own 2016 distribution from that account; how many 8606s must be filed?”

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