How to handle a 6 inch tall foundation wall???

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Zedder

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I am starting to plan our basement project and would like to ask for some advice on how to handle a 6 inch tall foundation wall in our walk-out basement (see pic below). Can I just run the drywall down the framing and over the foundation wall without insulating or framing this? Thanks in advance! Mark

basement wall.jpg
 
In b.c. the foundation is insulatated 2 ft below the floor and we build a 2x4 wall in front of the concrete with a 1'' gap. In spot like yours I would bring this up to about 2 ft. 2x4 bottom plate on plastic or tar paper 2x4 studs and 2x6 or 2x8 top plate Insulate this and move the poly out to cover the new framing
 
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