FMV of ALL IRA's form 8606

Forum|Forum|1 year ago
February 18, 2025
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I received a letter stating I need to take an RMD this coming year. I did not remember this IRA. Does the FMV for this IRA need to by included on Line 6 for 2024? (Line 6 says ALL IRAs) I have only been reporting the FMV on form 8606 from the IRA that I am receiving distributions. Have I been doing this wrong? Is so do I have to go back 10 years (or longer and amend? I did not make any contributions in 2024

Best answer by AmyC

Q1. Yes, 2017 was the beginning of calculations.

Q2. Any forms submitted without the correct basis should be corrected. Since you forgot the IRA existed, I don't know that you can go back and correct forms without the account information.

Q3. You are very impressive to be filing this each year on your own. Great job doing the right thing!

That is odd for the IRS to return the 8606. At the end of the day, all you can do is your best and keep records to help explain any discrepancies.

AmyC

Employee

1. Yes, the Instructions for Form 8606 state: Enter the total value of all your traditional, traditional SEP, and traditional SIMPLE IRAs as of December 31, 2024, plus any outstanding rollovers.

2. Yes. since the form 8606 tracks your basis in traditional IRAs across all accounts.

3. Yes. I have seen the IRS ask for 30 years of 8606 forms. I recommend you amend the forms and mail each one in separately- with tracking. Be sure to sign the form. Keep a copy for you.

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aalinda01Author

I have a 8606 for all years I made non deductible amounts. Prior to 2017 I was not getting a distribution from any IRA so the taxable amount would have been 0. Distributions started in 2017. So that is when I needed the FMV to calculate the taxable amount ? So I only need to go back to 2017?