Do I need Form 8606 to track my basis?

[JMS306]

In the past I have been contributing to a nondeductible IRA and therefore submitting form 8606 with my returns.   I did not make any nondeductible IRA contributions this year (nor take any distributions for that matter), and Turbotax is not routing me toward filling out an 8606.  Just want to verify that I do not in fact need it?  I thought I was to continue to file the 8606 every year to keep track of my total basis.   Thanks in advance!

[fanfare · Accepted solution]

With no related activity - non-deductible contribution, conversion or distribution - don't file the Form 8606. And you won't need it for a deductible contribution.

Keep the last one filed so you can pick up where you left off later.

Actually IRS wants you to retain all Forms 8606 indefinitely.

[PS56k]

I wish that TTax would retain the records for the Cost Basis - if you skip a year and then pick it up again, the previous data is NOT retained, and the new form implies you have NO HISTORY of contributions.

[fanfare]

well, that's why you have to maintain your own records. not everyone will use turbotax forever and ever

[dmertz]

As long as you continue to use TurboTax from year to year and transfer in the previous year's tax file to begin the next year, TurboTax does carry your basis information forward.  It does so on the IRA Information Worksheet.

[PS56k]

After getting bitten a couple of times on this ....
I now know about keeping the TT IRA Info Worksheet vs just the 8606 - and print off several copies and save the PDF - So there is now a paper copy in each IRA folder, and a paper copy with every yearly tax folder and the PDF in the TT documents sub-directory