Form 8606

[Kurly]

TP has 2 IRA's:
#1 PreTax Basis $185,000.00 Received $12,000 this year 1099R shows Box 1 $12,000 Box 2a $12,000.
#2 AfterTax Basis $50,000 Received this year $0

First year reported on Form 8606 Line # I would report the basis of all IRA's both PreTax and AfterTax. IS THIS RIGHT? A basis of $245,000 for all IRA's. Line # 6. therefore the $12,000 would calculate out to 95.9 % nontaxable on line # 12. IS THIS RIGHT?

Thanks all You Folks For Your Many Good Works on Behalf of all of Us. For not anyone of us is as smart as all of us.

[Kurly]

8606

Hey folks any comments on my post or are you all as confused as I am on the Form8606?

[Earl]

8606

Total of IRA is $245,000. Basis in IRA is $50,000. Computes to 20.4% tax free.
20.4% of $12,000 will to tax free. 79.6% will be taxable.

[joanmcq]

In other words, you can't have 'pre-tax basis'. Basis is after tax contributions. basis/FMV of all IRAs= percent of distribution that is taxable.

[DonPriebe]

In other words, you can't have 'pre-tax basis'. Basis is after tax contributions. basis/FMV of all IRAs= percent of distribution that is taxable.

And what's missing in the original post is the FMV of either IRA.