I need to make a contribution to my IRA account with mine after-tax money (from Saving), how would you avoid pay tax again when you withdraw at retirement?

[DN7934]

I've heard about form 8606 but not sure it will apply to my question.

[VolvoGirl · Accepted solution]

You can put it in a ROTH IRA.  Or make a non deductible contribution to a Traditional IRA.  If you take a IRA Deduction for it on your tax return then it will be taxable when you take it out.  If you don't take a deduction you have a basis in your IRA.  You need to fill out the 8606 to keep track of your basis so when you take a distribution you don't pay tax on it again.