Lost IRA basis

[swrayman]

I am preparing my taxes for the first time this year and have found that my CPA never completed form 8606. I have too much income to directly contribute to a Roth IRA, so I contribute to a traditional IRA and convert to Roth. I have never taken a tax deduction for the traditional IRA contribution. I started doing this in the early 2010's when that backdoor option became available. I have never made any withdrawals or over-contributed, maxxing out my contribution every year. Don't I need to fix this so I won't be double taxed on my wthdrawals when I retire? If so, how do I fix this in my current year on my TT forms? I'm kinda confused by the whole issue.

[MinhT1 · Accepted solution]

If you have filed no Forms 8606 for nondeductible contributions, the IRS may accept a filing of Forms 8606 for all years to establish the correct basis in your traditional IRA.

You don't need to amend your past returns if no other details have changed.

Send the 8606 forms with a cover letter explaining that you omitted to file these forms to the IRS Center where your tax returns would normally be sent.

For 2023 and future years, follow the instructions in this TurboTax Help article to file form 8606 with your tax return.