Form 8606 Non deductible IRA tracking

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I have been using Turbotax for 10 years. I thought Form 8606 was supposed to track your total basis in traditional IRAs by adding to line 2 each year. Why doesn't Turbotax include the previous years contributions?

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dmertzAnswer

Level 15

TurboTax does. However, it's all too easy to cause TurboTax to silently discard the transferred-in basis information by inadvertently answering No when asked if you made any nondeductible traditional IRA contributions. Once discarded, the historical information is gone. The only way to recover the information is to either manually reenter the amount or to start the tax return over and transfer in the historical information again.

ldnelsonhas1

Level 2

Where in TurboTax is the 8606 form?

macuser_22

Alumni - Champ

@ldnelsonhas1 - The 8606 form is automatic if you need it.

You don't normally enter a 8606 itself. It is automatically created when:

1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA

If none of those occurred, then the last filed 8606 remains in effect

There are some circumstances when a 8606 must be files for other reasons and might require filing a stand-alone 8606.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for">https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for</a>

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

dmertzAnswer

Level 15

Critter

Level 15

The only years you need to have a 8606 in the return is when you add non deductible contributions or you take distributions. Keep a copy of the most current 8606 in with your IRS paperwork so you have that info when you take out distributions later.

tc32

Level 2

same question. And, the last 2 years I have withdrawn from my Roths. TT did not generate a 8606 for either of us and looks like it won't this year. Why?

AmyC

Alumni - Intuit

The form 8606 tracks your contributions to a traditional IRA. distributions from a ROTH IRA and when funds are converted. If it is a year with none of these, the form is not used. Here is Form 8606 (PDF)

See Where do I find Form 8606?

@nlassman

@tc32 It sounds like you should have had 8606 in your returns. You should go back and create the 8606 and send it in. You can mail the 8606 separately. See Instructions for Form 8606 (PDF) Go back to your old returns, download as if you will amend. You will not amend, just force the 8606 and print it.

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Gleam55

Level 2

When TT asks for net conversions to a ROTH IRA for 5+ years ago, are recent withdrawals subtracted from the contributions? If the dividends gained from the conversion are withdrawn are they subtracted from the conversion as well?

cptt21

Level 2

I made a $20k IRA conversion to a Roth IRA but the program is not generating an 8606 form.

Why? How can I fill out the 8606?

dmertz

Level 15

If you converted from a traditional IRA to a Roth IRA and enter the Form 1099-R correctly, TurboTax will generate Form 8606 to report the conversion.

If the Form 1099-R from the payer has the IRA/SEP/SIMPLE box marked, make sure that you have marked this box on TurboTax's 1099-R form. If the IRA/SEP/SIMPLE box on the Form 1099-R provided by the payer is not marked, the distribution was from a qualified retirement plan like a 401(k) , not from an IRA, and is not reportable on Form 8606.