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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.

What happened to the inherited annuity? I thought you said you rolled this into an inherited IRA and that it had an after-tax basis shown on the 1099-R.

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.

You don't need Part I of Form 8606 unless something happened during the year that affects traditional IRA post-tax "basis."

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.

I assume in this paragraph we're no longer talking about inherited IRAs.

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

I don't know what you've tapped and what you haven't. I tried to make it clear that you do everything in isolation. Inherited in one universe. Non-inherited in a totally different universe. This will remain true even when you reach 70 1/2 and have to start RMD's from the non-inherited universe.

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