Form 8606 Basis

[NECPA in NEBRASKA]

If the husband dies and has basis still left on his 8606, does it transfer to the spouse's 8606 if she is the beneficiary. All of his IRA's were rolled over to her.

Thanks!

Bonnie

[TAXBILLY]

From Pub 590:

IRA with basis. 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. Unless you are the decedent's spouse and choose to treat the IRA as your own, you cannot combine this basis with any basis you have in your own traditional IRA(s) or any basis in traditional IRA(s) you inherited from other decedents. If you take distributions from both an inherited IRA and your IRA, and each has basis, you must complete separate Forms 8606 to determine the taxable and nontaxable portions of those distributions.

taxbilly

[NECPA in NEBRASKA]

Thanks Billy, I should have just checked the IRS pub. I was trying to search and my words were too short.