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If I don't care about paying taxes on non-deductible contributions do I have to file an 8606

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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If I don't care about paying taxes on non-deductible contributions do I have to file an 8606

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. 

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3 Replies

If I don't care about paying taxes on non-deductible contributions do I have to file an 8606

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. 

PaulaM
Employee Tax Expert

If I don't care about paying taxes on non-deductible contributions do I have to file an 8606

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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If I don't care about paying taxes on non-deductible contributions do I have to file an 8606

The penalty only comes into play if you are reporting new non deductible contributions... not for failure to use it for distributions.
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