@RC519 wrote:
Well that sounds great, especially from you because you seemed adamant that I needed to re-file. I now suspect that TT may default to including one because they don't know if one has a basis from prior years. The only outstanding worry I have is reason #3 for when an 8606 is required .. says Roth conversions and nothing about if you have a basis. Any more thoughts ?
Appreciate the input
BTW anyone know how to stifle the badging emails ?
Basis is *one* of the reasons to file a 8606. *ALL* Roth *conversions* are reported on a 8606 - basis or not.
You don't normally enter a 8606 itself. It is automatically created when:
1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA
4) You have distribution from Roth IRA.
[For more information:
See IRS 8606 instructions
https://www.irs.gov/pub/irs-pdf/i8606.pdf
"Who must file" page 1.]
[quote from IRS instructions]
Who Must File
File Form 8606 if any of the following
apply.
• You made nondeductible
contributions to a traditional IRA for
2020, including a repayment of a
qualified disaster or reservist
distribution.
• You received distributions from a
traditional, SEP, or SIMPLE IRA in 2020
and your basis in these IRAs is more
than zero. For this purpose, a
distribution doesn’t include a distribution
that is rolled over (other than a
repayment of a qualified disaster
distribution (see 2020 Forms 8915-C,
8915-D, and 8915-E)), qualified
charitable distribution, one-time
distribution to fund an HSA, conversion,
recharacterization, or return of certain
contributions.
• You or your spouse transferred all or
part of their traditional, SEP, or SIMPLE
IRA in 2020 to the other spouse under a
divorce or separation agreement where
the transfer resulted in a change in the
basis of the IRA of either spouse.
• You converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2020.
• You received distributions from a
Roth IRA in 2020 (other than a rollover,
recharacterization, or return of certain
contributions—see the instructions for
Part III, later).
• You received a distribution from an
inherited traditional, SEP, or SIMPLE
IRA that has a basis, or you received a
distribution from an inherited Roth IRA
that wasn’t a qualified distribution. You
may need to file more than one Form
8606. See IRA with basis under What if
You Inherit an IRA? in Pub. 590-B for
more information.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
