dmertz
Level 15

Retirement tax questions

VolvoGirl is correct.  Form 8606 is an individual form.

 

Line 14 of Form 8606 should show the entire accumulated basis in nondeductible traditional IRA contributions of the individual.  You should see line 14 of the last filed Form 8606 for the individual carrying forward to line 2 of the next filed Form 8606 for the individual.  If you transfer your previous year's TurboTax tax file into the current year's TurboTax to begin your current year's tax return, TurboTax will bring in your basis information and use it to populate Form 8606 line 2 for the current year.

 

For those married filing jointly, the modified AGI limit for being eligible to deduct a traditional IRA contribution is substantially different for the spouse who is not covered by the workplace retirement plan from the limit for the spouse who is covered by a workplace retirement plan.  It's not uncommon for the spouse with active participation in a workplace retirement plan to be ineligible to deduct the contribution while the spouse without active participation in a workplace retirement plan to be eligible to receive a deduction for the contribution.