I did a partial conversion to my Roth IRA and no contributions to my traditional IRA in 2017 – why must I do a Form 8606-S Nondeductible IRAs

[ekjamison]

I did a partial conversion to my Roth IRA and no contributions to my traditional IRA in 2017 – why must I do a Form 8606-S Nondeductible IRAs

please see attached screens that I am being asked to fill out

[macuser_22]

Form 8606 is also required for Roth conversions.

[macuser_22]

Also does your Traditional IRA have any non-deductible contributions in it (basis)?

[ekjamison]

Not for 2017

[ekjamison]

I only have the balance that I did not convert for 2017

[macuser_22]

At *any*  time in the past, was there ever any non-deductible contributions to the Traditional IRA.

[ekjamison]

no... just a remaining balance.  Last year I converted $20K and this year $25K. Last year I was never asked to fill out this 8606-S Nondeductible IRA form.  Are they just inquiring how much I have left to convert in the future?

[macuser_22]

A non-deductib contribution is a Traditional IRA contribution that was not deducted from your income in the year that the contribution was made, either because you did not wish to deduct it or your income was top high to allow a deduction.  That would create a basis in  the IRA so that any distributions, including conversions, would not be fully taxable.   The 1099-R interview asks if you have any prior year non-deductible contributions or automatically carries it forward if tracked in TurboTax.

[macuser_22]

Just asking,  that would be another reason for needing the 8606 form.

If you did a Traditional IRA to Roth conversion in the past, a 8606 form with part II filled out was required to be filed with your tax return.  If you used TurboTax and properly reported the 1099-R as a conversion, then the 8606 should automatically have been part of your tax return.

[ekjamison]

well, maybe because the form is not available yet is why Turbo cannot complete my entry... will just have to wait until 2-8-18 as the program indicates.  Just never had this issue before.  Thanks

[macuser_22]

The IRS has not release the 2017 version of the 8606 form yet because of the late tax law changes that changes some items on the 8606 form.   Until the IRS acts and adds the new electronic specifications of the form, it cannot be finalized.  2/8 is the projected date, but the actual date depends on the IRS.

[ekjamison]

Thanks so much for your advise and help.

[sampake5434-31]

been having the same issue

[alefan]

sample of form 8606

[MichaelDC · Accepted solution]

Form 8606 is not just for reporting nondeductible contributions to traditional IRAs. You also use it to report other IRA-related transactions where the government needs to track the status of your money—whether it’s been taxed or untaxed. Form 8606 is also used when you:

• Take distributions from a Roth IRA
• Take distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions
• Convert a traditional, SEP or SIMPLE IRA into a Roth IRA

Due to the recent tax law changes, some forms are delayed (sometimes by the IRS) It's advisable to wait until Form 8606 is available before filing.