I understand what you are saying and I think I see the source of confusion. The lead in sentence in the instructions on form 8606 says "Complete this part only if one of more of the following apply:" Beneath that are three bullet points. The bullet point that applies to me, and the one I quoted in my original question clearly states AND meaning for that bullet point to apply, both conditions should be met. Its easy enough to go ahead and file 8606, but can you see how the instructions imply that it is not needed?
