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I have an inherited ira. there is aquestion enter the total…

I have an inherited...

I have an inherited ira . there is aquestion enter the total of all nondeductable contributions that were made to my iras in all years prior to 2017 less any withdrawal or distribution in those years

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

How do i find out prior years basis

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Do i have to file seperate form 8608. i have other iras of my own.

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Answered in 9 minutes by:
3/15/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,704
Experience: Taxes, Immigration, Labor Relations
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If you inherit a traditional IRA from a person who had a basis in the IRA because of nondeductible contributions, that basis remains with the IRA.

Only if you are the decedent's spouse - you may choose to treat the IRA as your own - and combine that basis with the basis you have in your own traditional IRA.

Otherwise you will need to track SEPARATELY your own basis and any basis in traditional IRA(s) you inherited from other decedents.

If you took distributions from inherited and your own IRA - you must complete separate Forms 8606 to determine the taxable and nontaxable portions of each distribution.

.

Here are recommendations for such situation

https://www.taxact.com/support/21070/2017/ira-inherited-form-8606

Inherited traditional IRA distribution with basis and did not own traditional IRA distributions. If you took a distribution from a traditional IRA you inherited which had a basis, and had no distributions from IRAs which you own, figure the taxable amount of the inherited traditional IRA distribution using the Retirement Plan Distributions Worksheet after entering the distribution on Form 1099-R. File a paper return and include all copies of Forms 1099-R and 8606.

Let me know if that helps.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,704
Experience: Taxes, Immigration, Labor Relations
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Customer reply replied 1 month ago
I enter the1099R for my own Or a . And inherited Its I don,t know how to continue please help ma
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When you inherit an IRA from your spouse,

you have a choice:

-- you can roll over the assets into your own IRA. or

-- you can also transfer the assets into an Inherited IRA

If you choose to roll over the assets into your own IRA, you would base the timing and RMD calculations on your own age .

.

Choosing this option can be advantageous if:

--You have not yet reached age 70½ but your spouse had. It enables you to stretch out the tax-deferral of IRA assets by delaying distributions until you reach age 70½.

--You are over age 59½ and you may want to take distributions. Distributions from your IRA would not be subject to the 10% early withdrawal penalty.

Conversely, rolling the assets to your own IRA may not be advantageous if:

--You are under age 59½, and you intend to take a distribution from your IRA. You will be subject to the 10% early withdrawal penalty in your IRA but would not be subject to this penalty on an Inherited IRA.

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