We made nondeductible contribution to IRA on six tax returns and filed FORM 8606 for each of those years. I no longer have these forms because it was so long ago. Now I want to take a distribution from the IRA and of course it should be nontaxable because it is the basis. Is it necessary to have copies of original 8606? Will Turbo Tax generate a Form 8606 if I take this distribution? Any other issues I should be aware of if I take the distribution?
The only form 8606 you need is the last one you filed showing the cumulative non deductible total. If you don't have this form in hand (and you cannot get a copy) for the amount then you will need to recompute the amount yourself.
It will not be non-taxable because it is not the basis.
You cannot take the basis out first.
you take a fraction of the basis proportional to the distribution over the total value.
That is the calculation on Form 8606.
Enter the total non-deductible amount from prior years on Line 2 assuming this is your first distribution from the IRA.
The old Forms 8606 are important if the IRS asks to see them.
I see what you are saying now that I look at FORM 8606. So the part that is non taxable is only a portion of the distribution. Yes it will be my first distribution. Hopefully the IRS would not require a document that was filed 36 years ago.....THANKS!!!
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