Basis of IRA’s
70 year old client has several IRA’s and other retirement accounts. He also has one modest inherited IRA. Some of his IRA’s have basis. In calculating the formula for how much of the IRA distribution is taxable I believe the inherited IRA is not included in the calculation. The inherited IRA has its own calculation for distribution. Is that correct?
Mark
Permalink Submitted by Alan - IRA critic on Tue, 2018-04-03 21:51
Yes, that is correct. Any basis in the inherited IRA is totally separate from basis in owned IRAs. A separate Form 8606 applies to each.