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Let's take a deep breath. Now, calmly, separate all these into inherited in one pile and non-inherited in the other. During everything that follows, we're dealing only with the inherited. If I understand your situation, these are the only things you're receiving distributions from. Your other accounts are totally separate and don't affect any of this.

Yes, one inherited IRA into which I combined two of Dad's with a direct rollover. We are taking RMDs only from this account, as required by law. Frankly, we would prefer not to be taking any distributions right now, but the tax man want his share of Dad's IRAs. It is fully taxable.

Do I still need to file form 8606 if it is fully taxable? Not a big deal if we do, as an amended return is in our future either way.

When we tried to do a Roth conversion when it first came available, we thought it would be as simple as choosing only the IRAs whose contributions we had not been able to deduct. We are old enough to have started IRAs before Roths came out, and had some years where we could not take a tax deduction. Much to our chagrin it was way more complicated than that, and would have required figuring taxes for the conversion based on what percentages of accounts we had received a deduction for.

Now you are seeming to tell me that for the RMD, I can ignore the accounts I have not yet tapped?

Thanks Phil!


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