My recently deceased spouse's IRA has been rolled over into mine. Does the cost basis change for me?

By Denise Appleby AAA
A:

The basis attributed to IRA assets that you inherited remains the same. Since you are a spouse beneficiary and you elect to treat the assets as your own by transferring them to your own IRA, the basis is now treated as if you made the non-deductible contribution. Going forward, you should file Form 8606 to determine the taxable portion of distributions you receive from any of your Traditional IRAs. If you also made non-deductible contributions to your IRA, the basis from the inherited assets should be combined with your basis.



This question was answered by Denise Appleby
(
Contact Denise)



RELATED FAQS

  1. How does a defined benefit pension plan differ from a defined contribution plan?

    Learn the differences between defined benefit plans and defined contribution plans when reviewing employer-sponsored qualified ...
  2. What are the best ways to pay off my mortgage quickly?

    Learn how mortgage payments may be reduced and how to save thousands on mortgage loans by lowering the interest and principle ...
  3. What happened to Bernard Baruch's estate after his death?

    Learn what became of financier Bernard Baruch's multimillion dollar estate upon his death in 1965, and learn about his philanthropic ...
  4. What are the differences between a revocable trust and a will?

    Investigate the choice between a revocable trust and a traditional will and how their unique advantages can match asset management ...
RELATED TERMS
  1. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  2. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  3. Gold IRA

    Definition of Gold IRA
  4. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  5. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  6. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...

You May Also Like

Related Articles
  1. Professionals

    Are Longevity Annuities in 401(k)s a ...

  2. Professionals

    Why Retirement Advice Is Better But ...

  3. Professionals

    Coming Soon: Private Equity In 401(k) ...

  4. Professionals

    Ways To Cut 401(k) Expenses

  5. Professionals

    Tread Carefully With Retirement Plan ...

Trading Center