What to do when took withdrawal from non-deductible IRA opened years ago without f filing Form 8606?

[pillitto]

I took RMD for the tax year, 2023, from my non-deductible IRA which was opened many years ago. I remember that when I opened this non-deductible IRA, I did not file Form 8606 because I did not know it was required. Actually, I just learned about Form 8606 here. What should I do? Thank you.

[fanfare]

When you file showing a distribution, enter your prior years basis on 8606 Line 2.

TurboTax will ask you if you have such a basis and fill out the form for you.

@pillitto 

Keep a copy of Form 8606 for you will now have a new basis - Line 14.

[pillitto]

Would you please clarify for me? 

Let's assume I made my non-deductible contribution (=NDC, from now on) in, say, 1999.

Do you mean that I do not need to file Form 8606 for 1999, retroactively informing IRS on the creation of my new NDC IRA?

Instead, I directly go to Form 8606 for 2022 and put prior year basis and RMD I made for 2022 etc?

Thank you very much.

[fanfare · Accepted solution]

your first solution is the strictly correct solution advocated by all the gurus.

Did you find that form?

Form 8606 can be filed by itself only if you are not required to file a tax return.

Attach 1999 Form 8606 to the Form 1040-X for that year.

Note; If no dollar amounts are changing, you can leave 1040-X line 1-23 EMPTY

In this manner of filing, you sign 1040-X, not 8606

Note to Note: I haven't looked at that old (example) 1040-X to see if any line numbers have moved.

 I refer to the current Form 1040-X

mail 1040-X to the address in the current Instructions for Form 1040-X.

Aside:

For a Roth distribution you are allowed to enter your basis (prior contributions) no questions asked.

why not for a Traditional IRA?

@pillitto 

[pillitto]

Thanks for your response, fanfare.

I'll file 1999 Form 8606 and amend 1040 for the year, 1999, if necessary. 

Thus, the lack of Form 8606 will be solved.

Now, I'm a bit confused. Your second reply seems lacking "What to do about a distribution I took for 2022" part. You said in your 1st reply, "When you file showing a distribution, enter your prior years basis on 8606 Line 2." By this, you mean "when I file Form 8606 for 2022? I would appreciate your confirmation.

My 2nd question: Can I file 1999 Form  8606 and 2022 Form 8606 together? Actually, I do not need to file 1040 for 2022.  

[fanfare]

"Actually, I do not need to file 1040 for 2022.  "

Form 8606 can be filed by itself only if you are not required to file a tax return.

"

don't mail two different years in the same envelope.

see above for how to get 1999 Form 8606 to the IRS using 1040-X.