IRS FORM 8606

Submitted by Patricia Giroux on Tue, 2022-02-22 19:10

I was told I can’t efile with two 8606 forms, both in my name. I have my own 8606 basis & this year inherited a Traditional IRA from which I took a RMD for 2021. Pub 590 says I can’t co-mingle the inherited basis with mine. I have converted all my Trad IRA into ROTHs in 2021 so I will no longer have a basis after 2021. The Trad accounts all had a zero balance for 12-31-21. Does this mean I will have to mail in my return or is there software out there that will allow me to generate 2 forms 8606 in my name? Should I just claim the inherited RMD in 2021 and start the inherited 8606 next year? Problem is, then I wouldn’t have a zero balance on all my traditional accts if I had to include my inherited one. Any suggestions would be appreciated!



Submitted by Alan - IRA critic on Tue, 2022-02-22 20:57

How much additional taxable income do you have if you file the 8606 for your own IRA, and just report the inherited IRA distribution as fully taxable? What is your % of basis in the inherited IRA, are you under the 10 year rule, or was the inherited IRA RMD the uncompleted RMD of decedent?

Submitted by David Mertz on Tue, 2022-02-22 21:21

From this person’s other post here, the inherited IRA was established by rollover from the federal TSP account of a decedent dying in 2021, so this is subject to annual RMDs based on life-expectancy, not the 10-year rule.  The 2021 RMD was paid from the TSP before rolling over the remainder in 2021.

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