Yes, that is correct. If you have made non-deductible IRA contributions then not the entire IRA distribution will be taxable. Form 8606 keeps track of your basis and the taxable amount is based on a calculation with the total IRA balance at the year-end of the taxable year. Your basis is decreased every year once you start taking out the distributions. If you have made non-deductible IRA contributions and you don't see the Form 8606, that means something is wrong somewhere. You may need to amend your return depending on additional details. Form 8606 is a stand-alone form and can be filed anytime by itself.
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