Beneficiary IRA and Non Deductible IRA

[Kram BergGold]

My client has a large beneficiary IRA and an IRA he set up mostly with non deductible contributions. When he turns 70.5 and starts to take his RMD from the Traditional IRA, will the amount in the beneficiary IRA be added to the FMV of his Traditional IRA on Form 8606?

[TAXNJ]

Inherited IRA

My client has a large beneficiary IRA and an IRA he set up mostly with non deductible contributions. When he turns 70.5 and starts to take his RMD from the Traditional IRA, will the amount in the beneficiary IRA be added to the FMV of his Traditional IRA on Form 8606?

If your talking about an inherited IRA, special rules may apply (spouse/non spouse especially with timing.

See if the attached 8 points helps your issue

http://www.bankrate.com/finance/retirement/ways-to-go-wrong-with-inherited-ira-1.aspx

[buzzardbreath]

Both are traditional

Just following the Form 8606 and also consulting the TaxBook, it appears that all traditional IRAs are to be lumped together for calculating the non-taxable percentage to be exempted.

I believe the beneficiary IRA and the "non-deductible" IRA are both traditional, absent any information to the contrary. Just because one of them was funded with non-deductible contributions doesn't create a category other than traditional. One thing that would not enter the calculation would be a Roth.