IRA inheritance distribution - all taxable?
TP received $62000 IRA inheritance from her father. She took a full distribution in 2009. 1099R says $62K is taxable and box 2b is checked - tax amount not determinable. We called the bank and this was a 401k rolled over into an IRA and the bank has no record of deposits. TP says all records and paperwork of her father were all disposed of! So we have no statement of his contributions nor any Forms 8606. TP says she's "sure" the IRA contains some nondeductible contributions from after 1986. Her sisters recorded their inheritances and distributions and $0 taxable! Would you be willing to make an estimate of nondeductible contributions based on what the TP "knows." Or should I basically just say "Sorry! No paperwork, no proof" and just go with what the 1099 says and what I think in actuality occurred?
