Form 8906

Forum|Forum|3 months ago
March 4, 2026
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The instructions for 8906 say complete if you have the following: "You converted part , but no all, of your traditional IRAs to Roth IRAs in 2025 AND you made nondeductible contributions to a traditional IRA in 2025 or a year earlier." I did a Roth Conversion, but I did not make a nondeductible to a traditional IRA in 2025 or a year earlier. Since "AND" is included in these instructions, it would seem the trigger for this form is both items. Since I only had one of these items - not both, it appears Turbo Tax is incorrect in generating Form 8906 for me. Is this an error in Turbo Tax?

Best answer by baldietax

Those are the instructions for Part I. If you only have a Roth conversion it fills out Part II.

If the concern is the question about MV of your IRAs that should not be needed, others have complained about this being asked - I think you can just put a $1 if it is not used on the form and doesn’t affect your taxes.

CatinaT1

Level 15

You will still need form 8906 even if you only had a Roth conversion. The IRS uses this form to track "basis"—the money you've already paid taxes on—to ensure you aren't taxed twice on the same dollars.

You must attach this form to your 1040 for the 2025 tax year if you did any of the following:

Converted any amount from a Traditional, SEP, or SIMPLE IRA to a Roth IRA.
Made nondeductible contributions to a Traditional IRA.
Took a distribution from a Roth IRA (unless it was a 100% qualified distribution).
Took a distribution from a Traditional IRA and you have basis from previous years.

Failing to file Form 8606 can result in a $50 penalty per year, but the real cost is usually the accidental tax bill the IRS generates because they don't know you've already paid taxes on that money.

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HOB2Author

Level 2

I understand what you are saying and I think I see the source of confusion. The lead in sentence in the instructions on form 8606 says "Complete this part only if one of more of the following apply:" Beneath that are three bullet points. The bullet point that applies to me, and the one I quoted in my original question clearly states AND meaning for that bullet point to apply, both conditions should be met. Its easy enough to go ahead and file 8606, but can you see how the instructions imply that it is not needed?