Question

FORM 8606 NONDEDUCTIBLE IRA CONTRIBUTIONS

Forum|Forum|2 years ago
August 20, 2023
3 replies
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We made nondeductible contribution to IRA on six tax returns and filed FORM 8606 for each of those years. I no longer have these forms because it was so long ago. Now I want to take a distribution from the IRA and of course it should be nontaxable because it is the basis. Is it necessary to have copies of original 8606? Will Turbo Tax generate a Form 8606 if I take this distribution? Any other issues I should be aware of if I take the distribution?

Critter-3

The only form 8606 you need is the last one you filed showing the cumulative non deductible total. If you don't have this form in hand (and you cannot get a copy) for the amount then you will need to recompute the amount yourself.

J

jhauckAuthor

I know the amount that we contributed that was non deductible from a spreadsheet I created. I just don't have a copy of FORM 8606. ...just not sure I need it...

fanfare

Employee

It will not be non-taxable because it is not the basis.

You cannot take the basis out first.

you take a fraction of the basis proportional to the distribution over the total value.

That is the calculation on Form 8606.

Enter the total non-deductible amount from prior years on Line 2 assuming this is your first distribution from the IRA.

The old Forms 8606 are important if the IRS asks to see them.

@jhauck

J

jhauckAuthor

I see what you are saying now that I look at FORM 8606. So the part that is non taxable is only a portion of the distribution. Yes it will be my first distribution. Hopefully the IRS would not require a document that was filed 36 years ago.....THANKS!!!

N

NCPERSON1

was this a TRAD IRA or a ROTH IRA?