You can only amend to get a refund for up to three years. If you never deducted the IRA contribution, then you have nondeductible IRA contributions. There would be a Form 8606 that would keep track of those contributions over the years. Distributions from a Nondeductible IRA are not taxable.
We'll
automatically generate Form 8606 (Nondeductible IRAs) if you reported:
- Nondeductible contributions
made to a traditional IRA;
- Distributions from a
traditional, SEP or SIMPLE IRA that had nondeductible contributions
(excluding rollovers, conversions, recharacterizations, qualified
charitable distributions, one-time distribution to fund an HSA, or return
of certain contributions);
- Conversions from a
traditional, SEP, or SIMPLE IRA to a Roth IRA; or
- Distributions from a Roth IRA
(other than rollovers, recharacterizations, or a return of certain
contributions).
You would be asked this
question after you have entered your 1099-R for your IRA distribution.
The screen sequence would be as
below:
- What Did
You Do With The Money? Cashed out
- Any
Nondeductible Contributions to Jason's IRA? Yes
- Let's
Find Your IRA Basis.
- Tell Us
the Value of Your Traditional IRA
