IRA Coronavirus Related Distribution (CRD)
Client has a traditional IRA that contains after-tax (basis) funds – They took a CRD earlier this year. Does the pro-rata rule apply? Or does the distribution consist of all pre-tax funds? Assuming the pro-rata rule applies must an 8606 must be filed?
Thank you
Permalink Submitted by David Mertz on Wed, 2020-10-28 16:35
Yes, the pro-rata rule applies and Form 8606 must be filed. Form 8915-E for reporting CRDs will take from Form 8606 line 15b the taxable amount attributable the CRD.