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posted Jun 4, 2019 1:41:43 PM

Made non-deductible contribution to Traditional IRA in 2017 and didn't file 8606. Doing so now. Should I check the 'amended return' box? Can I send the form by itself?

I made non-deductible contributions to a new Traditional IRA account in 2017, but did not realize I had to submit a form 8606. I am filling out the 2017 form 8606 to file now (late). Should I check the box that says 'If this is amended return, check here'? Should I include any other forms with the 2017 8606 or can it be sent by itself? Do I include the penalty payment (check) with the form? 

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1 Best answer
Level 15
Jun 4, 2019 1:41:44 PM

You must amend if you are changing from deductible to non0-deductible to remove the deduction.  Otherwise if nothing else would change, there is no need to amend.

There is a $50 penalty, but the IRS often waives that and will bill you if they do not.

"Penalty for Not Filing
If you are required to file Form 8606 to report a nondeductible contribution to a traditional IRA for 2017, but don’t do so, you must pay a $50 penalty, unless you can show reasonable cause."  Just request a waiver of the penalty.

https://www.irs.gov/pub/irs-prior/f8606--2017.pdf

https://www.irs.gov/pub/irs-prior/i8606--2017.pdf




1 Replies
Level 15
Jun 4, 2019 1:41:44 PM

You must amend if you are changing from deductible to non0-deductible to remove the deduction.  Otherwise if nothing else would change, there is no need to amend.

There is a $50 penalty, but the IRS often waives that and will bill you if they do not.

"Penalty for Not Filing
If you are required to file Form 8606 to report a nondeductible contribution to a traditional IRA for 2017, but don’t do so, you must pay a $50 penalty, unless you can show reasonable cause."  Just request a waiver of the penalty.

https://www.irs.gov/pub/irs-prior/f8606--2017.pdf

https://www.irs.gov/pub/irs-prior/i8606--2017.pdf