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Retirement tax questions
The purpose of the 8606 is to report nondeductible traditional IRA contributions essentially so the IRS has record so when you take a later distribution, the correct taxable amount can be determined.
You can send the 8606 for the past years now and request that the penalty be abated.
In your case, you know the amounts and that the money came from the Roth, but the IRS processes millions of returns that are not as simple- either not the entire amount was nondeductible, etc. so the 8606 helps taxpayers- especially in situations where there are multiple years and varying amounts.
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‎January 20, 2022
2:10 PM