Form 8606 is not just for reporting nondeductible contributions to traditional IRAs. You also use it to report other IRA-related transactions where the government needs to track the status of your money—whether it’s been taxed or untaxed. Form 8606 is also used when you:
- Take distributions from a Roth IRA
- Take distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions
- Convert a traditional, SEP or SIMPLE IRA into a Roth IRA
Due to the recent tax law changes, some forms are delayed (sometimes by the IRS) It's advisable to wait until Form 8606 is available before filing.
