Form 8606 for roth conversion

Forum|Forum|6 years ago
February 22, 2020
1 reply
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Could someone clarify this please: On form 8606 instruction, it says you must file if "you convert tradition IRA to Roth." However, on the form itself, it seems to suggest you need to complete the form when you convert traditional IRA to Roth AND you made nondeductible contribution to traditional IRA. So for people who converted traditional IRA to Roth, but did not made any non-deductible contributions, do they need to file form 8606?

KarenM90

Level 11

Yes, if you converted a Traditional IRA to a Roth IRA, Form 8606 needs to be completed. The directions from Form 8606 state:

Who Must File - File Form 8606 if ANY of the following apply:

You made nondeductible contributions to a traditional IRA for 2019, including a repayment of a qualified disaster or reservist distribution.
You received distributions from a traditional, SEP, or SIMPLE IRA in 2019 and your basis in traditional IRAs is more than zero. For this purpose, a distribution doesn’t include a distribution that is rolled over (other than a repayment of a qualified disaster distribution (see 2019 Forms 8915-C and 8915-D)), qualified charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.
You or your spouse transferred all or part of their traditional, SEP, or SIMPLE IRA in 2019 to the other spouse under a divorce or separation agreement where the transfer resulted in a change in the basis of the traditional IRA of either spouse.
You converted an amount from a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2019.
You received distributions from a Roth IRA in 2019 (other than a rollover, recharacterization, or return of certain contributions—see the instructions for Part III, later).
You received a distribution from an inherited traditional IRA that has a basis, or you received a distribution from an inherited Roth IRA that wasn’t a qualified distribution. You may need to file more than one Form 8606. See IRA with basis under What if You Inherit an IRA? in Pub. 590-B for more information.