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To fill out form 8606 correctly, provide accurate information about any non-deductible contributions to traditional IRAs, Roth IRA conversions, and distributions. Follow the instructions carefully and double-check your entries to ensure accuracy.

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6mo ago

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Form 8606 is Nondeductible IRAs. Form 8606 is used to report several situations. One, nondeductible contributions made to a traditional IRA. Two, distributions from IRAs (traditional, SEP, SIMPLE) if nondeductible contributions were ever made to traditional IRAs. Three, distributions from Roth IRAs. Four, conversions from IRAS (traditional, SEP, SIMPLE) to Roth IRAs. Nondeductible contributions already have been taxed. So it's important to file Form 8606 to report nondeductible contributions so that you won't be taxed twice on the same money when you start receiving distributions from that IRA. There's a $50 penalty for not filing Form 8606 if you're required to do so. There's also a $100 penalty for overstating your nondeductible contributions. For more information, go to www.irs.gov/formspubs for Publication 590 (Individual Retirement Accounts).


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Form 8606 is used to report non-deductible contributions to traditional IRAs and Roth IRA conversions to the IRS. It helps track the basis in your IRAs, which is important for calculating future tax obligations when distributions are made.


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