Late Form 8606 filings | Ed Slott and Company, LLC

Late Form 8606 filings

Forums Under Maintenance

The forums are temporarily unavailable for posting while undergoing maintenance.

 

As best I recall non-deductible IRAs first became available in 1987? Seems a fair number of folks have been making non-deductible IRA contributions over the past 20+ years but haven't been filing Form 8606 with their annual 1040s. Is my understadning correct that delinquent Forms 8606 can be filed separately from the 1040 (i.e., don't have to file an amended 1040)? Are Forms 8606 for the last 20+ years readily available somewhere (IRS website)? Thanks

You are correct that non deductible TIRA contributions have been possible since 1987, and the 8606 is used to report them. In addition, the IRS has been accepting these without penalty when filed retroactively. Since the 8606 form develops a cumulative total of the basis including years where a distribution recovers some of the basis, you must start with the oldest year and work forward. This may take some research and test your record keeping, but you may need to order some IRS transripts to determine that you both a) Made a contribution of a specific amount and b) Did not take a deduction on the 1040. If you file retroactive 8606 forms and report basis that is not valid, then all bets are off regarding the penalty free form acceptance. I do not know how far back you retrieve the 8606 on the IRS site, but piece this together as best you can. You may need to use a different year version and edit the year of the 8606 edition you file. They should be filed on a bulk stand alone basis with a letter of explanation. You can skip any years that you did not make a non deductible contribution. If you have used a tax preparer, professional software is supposed to generate an 8606 anytime you make a contribution that cannot be fully deducted. It also captures your cumulative unrecovered basis amount, so you might check with any past preparers if you do not have your own records.

The website is for archived tax forms: http://www.irs.gov/pub/irs-prior/
 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.