Form 8606 not filed for previous non-deductible post-tax Traditional IRA contributions

[umamiking]

Hi, I have a Traditional IRA account that was rolled over from a workplace 401K in 2020. I have made two post-tax contributions to the account since then but didn't know about reporting it on Form 8606. I used TurboTax the last few years and I don't think I remembered to put the contributions in the program, so an 8606 probably wasn't generated automatically. For 2022 tax year (today), I went through the Traditional and Roth IRA section under Deductions & Credits and answered yes to Nondeductible Contributions to Traditional IRA from 2021 and prior, and recorded my contribution amount. I also entered my prior year Roth IRA contributions (prior to 2022).

Is this sufficient or do I need to file new Form 8606s for 2021?

[MinhT1]

If you made a nondeductible contribution to your IRA in 2021 and failed to file form 8606 with your 2021 tax return, You can fill out and file this form for 2021 now as a standalone form. You do not need to amend your 2021 tax return. You can send this form to the IRS at the address where you would file your tax return. This depends on your state of residence.

Please find the address in this IRS document.

If you fail to file form 8606, you will be taxed on the distribution of your nondeductible contribution.

There is a $50 penalty for filing the 8606 late unless you can show reasonable cause.

[umamiking]

Hi, I am in the process of filing a Form 8606 for 2021 but I am not sure I understand what basis I should use for Line 2? To recap, I've made a nondeductible contribution for tax years 2021 and 2023. 

"Basis. Your basis in traditional, SEP, and SIMPLE IRAs is the total of all your nondeductible contributions and nontaxable amounts included in rollovers made to these IRAs minus the total of all your nontaxable distributions, adjusted if necessary (see the instructions for line 2, later)."

For Form 8606 2021, is the basis just the contribution I made in that year, or would it include the total of all nondeductible contributions (2021 + 2023)? I did not take any distributions out of any account at any time.

[AmyC]

If this is your first year filing the form 8606, you would have no previous basis. Once you file 8606, you will file it every year. Each year, you add any new basis to the original. Since you are filing 2021, only basis for 2021 and prior years would be used. When you do 2022, you will use 2021 and add any new basis.

 

About Form 8606, Nondeductible IRAs - IRS:  

Otherwise, use the Total Basis Chart to find the amount to enter on line 2.

However, you may need to enter an amount that is more than -0- (even if this is the first year you are required to file Form 8606) or increase or decrease the amount from the chart if your basis changed because of any of the following.

You had a return of excess traditional IRA contributions (see Return of Excess Traditional IRA Contributions, earlier).

Incident to divorce, you transferred or received part or all of a traditional, SEP, or SIMPLE IRA (see the last bulleted item under Line 7, later).

You rolled over any nontaxable portion of your qualified retirement plan to a traditional, SEP, or SIMPLE IRA that wasn’t previously reported on Form 8606, line 2. Include the nontaxable portion on line 2.