What is Form 8606: Nondeductible IRAs used for?
Form 8606, Nondeductible IRAs is used to report nondeductible contributions and distributions from Traditional, SEP, SIMPLE and Roth IRAs. We’ll create this form when any of the following situations apply to you:
- Nondeductible contributions made to traditional IRAs
- Distributions from traditional, SEP or SIMPLE IRAs, if you have nondeductible contributions (excluding rollovers, conversions, recharacterizations, qualified charitable distributions, one-time distribution to fund an HSA, or return of certain contributions)
- Conversions from traditional, SEP or Simple IRAs to Roth IRAs
- Distributions from Roth IRAs (other than a rollover, recharacterization, or return of certain contributions)
If any of the following apply, you’ll have to manually complete Form 8606 and mail it with your tax return to the IRS:
- You received a distribution from an inherited traditional IRA that had nondeductible contributions.
- You transferred an inherited plan account to a Roth IRA.
- You received a distribution from an inherited Roth IRA that was not a qualified distribution.