Form 8606

Forum|Forum|4 years ago
March 19, 2022
1 reply
7 views

A year ago a family member made a nondeductable contribution directly to a Roth IRA as she was within the income limits to do so. She thought she needed to file a form 8606 to report the contribution. Was she mistaken to file the form 8606 and if so what does she need to do to correct/address it?

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ColeenD3

Level 15

Basically, you must file Form 8606 for every year you contribute after-tax amounts (non-deductible contributions) to your traditional IRA. Conversions from traditional, SEP, or SIMPLE IRAs must also be reported on Form 8606. Additionally, you must file the form every year you receive a distribution from your Roth IRA or your traditional IRA if you ever previously contributed after-tax amounts.

[Edited 3/24/2022|4:00am PST]

BBFLAuthor

Level 2

Thanks for the feedback. I think the confusion we have is that in reading the form it seems to address contributions to a traditional IRA and conversions to a Roth IRA. We don't see a line item that addresses a direct contribution to a Roth. Am I misreading the form? Thanks for your help.

MaryK4

Level 15

If it was a contribution to a Roth IRA she did not need to file the 8606- so she may have to file and amended return and/or 8606. I am not sure how she filed it (where she put the information) so I do not know what the correction should be (if you know what lines she put it on, add to this thread)

Generally, after you file your return, you can change a nondeductible contribution to a traditional IRA to a deductible contribution or vice versa if you make the change within the time limit for filing Form 1040-X, Amended U.S. Individual Income Tax Return. You may also be able to make a recharacterization. If necessary, complete a new Form 8606 showing the revised information and file it with Form 1040-X.About Form 8606, Nondeductible IRAs - Internal Revenue ...

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