Customer age (now age 83) & spouse each opened Roth IRA's in 2002. Each had a Roth with 2 different providers.
Over the years they had contributed a total of $12-k each ($6-k each to each separate Roth).
Spouse died in 2023. Customer then transferred/rolled over both of spouses balances to his Roth IRA.
Neither person had taken any distributions until customer took $18-k in 2024 distributions.
Taxpayer's provider issued the 1099-R showing 2 separate $9-k distributions.
One is coded "Q". (No Problem) The other $9-k is coded "T" because they say it came from the spousal rollover.
I'm inclined to believe that because the deceased spouse had $12-k in basis, my customer can recover the $9-k tax free
per form "8606" part 3 showing $9-k on line 22. Do I have this right? Thanks for comments.
Over the years they had contributed a total of $12-k each ($6-k each to each separate Roth).
Spouse died in 2023. Customer then transferred/rolled over both of spouses balances to his Roth IRA.
Neither person had taken any distributions until customer took $18-k in 2024 distributions.
Taxpayer's provider issued the 1099-R showing 2 separate $9-k distributions.
One is coded "Q". (No Problem) The other $9-k is coded "T" because they say it came from the spousal rollover.
I'm inclined to believe that because the deceased spouse had $12-k in basis, my customer can recover the $9-k tax free
per form "8606" part 3 showing $9-k on line 22. Do I have this right? Thanks for comments.
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