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    thatgirl515's Avatar
    thatgirl515 Posts: 1, Reputation: 1
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    #1

    Mar 6, 2007, 11:26 AM
    Inherited IRA
    My mother passed away and left my brother and I an IRA at 50% Beneficiaries each. We both received a lump sum amount- I know this IRA was started in 1991 and then rolled over in 1998 to an annuity paying more interest. In 1998 it was $16286.72 (upon her death it was $34,688.56), she never took a RMD. I also know she never made any contributions to this IRA other than the earned interest. I do not know and can not find out how much it was started with in 1991. Her past Tax returns show NO deduction for any IRA- how can I determine the Basis of this IRA and how can I determine the taxable amount of my inheritance? Thank you very much.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 7, 2007, 11:16 PM
    Since IRAs are funded with before-tax money, basis is irrelevant.

    ALL of the IRA is taxable to the heir.
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