Some time back I lost track of an 8606. So that year I didn't file it and just paid taxes on the full amount. The savings are so low because I only once contributed the max $2000. If I don't care about paying taxes on that $2000 when I withdraw the pretax contribution do I have to still file an 8606? For a measly $300 in taxes I don't want to perform a lifetime of 8606 tracking.
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No, you NEVER have to file a form 8606 to recoup the basis ... in fact the IRS would love it if you totally forget about it since it is in their favor.
No, you NEVER have to file a form 8606 to recoup the basis ... in fact the IRS would love it if you totally forget about it since it is in their favor.
Additionally, by 'not caring about the taxes' you'll avoid the $50 late filing fee (although it can be waived) by not filing Form 8606.
See below for reference.
https://www.thebalance.com/forgot-to-file-form-8606-for-non-deductible-iras-3973986
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