Pro-rata Rule for both spouses with IRAs
I have read in detail your posts concerning the pro-rata rule ( https://irahelp.com/slottreport/detailing-pro-rata-rule). What is not mentioned is whether both spouses have an IRA. Since IRA’s are owned separately by each spouse, am I correct in stating that the pro-rata calculation only applies to the accounts owned by the spouse that makes the withdrawal?
Permalink Submitted by Alan - IRA critic on Mon, 2019-11-11 23:42
Yes, you are correct. When an IRA has basis and a distribution is made, it is reported on Form 8606. Form 8606 only has room for one SS#, the number for the spouse that owns the IRA that made the distribution.