That's correct. Inherited IRA values or basis (if any) are disregarded for purposes of your own Form 8606, and will not affect your back door Roth. If the inherited IRA happened to contain basis (not the case here), you would have to file a separate 8606 for the inherited IRA. The IRS does not make this very clear in the 8606 Inst. but they make an attempt in Pub 590 B.Oh really? Form 8606 Line 6:Inherited IRAs do not affected traditional IRA conversions and doesn't factor into the prorata calculation. If you use a CPA, make sure that you double check the 8608 form next year to make sure it doesn't not include any distributions from the inherited IRA. I had to guide my CPA to fix the 8608 from 2023 because the software pulled in my inherited IRA distribution.
Enter the value of all your traditional, traditional SEP, and traditional SIMPLE IRAs as of December 31,
2023, plus any outstanding rollovers. Subtract certain repayments of qualified disaster distributions, if
any, from 2023 Form(s) 8915-F (see instructions)
So you're saying that this would not include any inherited IRA accounts, correct? Clearly that would sidestep any tax filing annoyances entirely.
Thank you!
As you know, the TSP does not wish to service non spouse inherited TSP accounts, and they give you 90 days to complete a direct rollover to an inherited IRA. I would get this done and avoid coming anywhere close to that 90 day deadline to avoid a taxable distribution that you can't roll over.
If the decedent passed after their RMD beginning date, you will be required to take annual beneficiary RMDs in years 1-9 of the 10 year rule. And if the decedent did not complete their 2024 RMD prior to passing, the TSP must distribute it to you prior to executing the direct rollover of the balance to your inherited IRA.
Statistics: Posted by Alan S. — Thu Oct 03, 2024 9:39 pm — Replies 3 — Views 119