AmyC
Expert Alumni

Get your taxes done using TurboTax

The 8606 is critical, great job! Without that form, you would be paying taxes on $400,000 as you take the money out over time. However, thanks to the 8606, you will only be paying taxes on $300,000 over time. The IRS can and has asked for over 20 years of form 8606 filings to be presented when not filed each year as it should have been.

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