What happens to remaining non-deductible basis of decedent IRA going to spouse – 8606
If enter 0 for the FMV for final 8606 for decedent he uses up the entire basis in the year of death. Do I enter the FMV at the DOD instead? Does the remaining basis go to spouse since the IRA went to her?
Permalink Submitted by Alan - IRA critic on Fri, 2020-02-21 20:26
Yes and Yes. If the decedent took a distribution line 6 is the value on DOD. Line 14 of last decedent’s 8606 carries forward to line 2 of beneficiary’s or spouse’s own 8606 to the extent of beneficiary’s share of IRAs inherited. Otherwise, basis will be misapplied.