Form 8606, Nondeductible IRAs
What is Form 8606?
In your tax return, Form 8606 is used to report these situations:
- Nondeductible contributions you made to traditional IRAs.
- Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs.
- Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
- Distributions from Roth IRAs.
TurboTax will help you file Form 8606 if any of the following apply.
- You made nondeductible contributions to a traditional IRA for 2014, including a repayment of a qualified reservist distribution.
- You received distributions from a traditional, SEP, or SIMPLE IRA in 2014 and your basis in traditional IRAs is more than zero. For this purpose, a distribution does not include a rollover, qualified charitable distributions, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.
- You converted an amount from a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2014 (unless you recharacterized the entire conversion).
- You received distributions from a Roth IRA in 2014 (other than a rollover, recharacterization, or return of certain contributions).
- You made a repayment of a qualified disaster recovery assistance distribution that is attributable to previously nondeductible contributions.
- You received a distribution from an inherited Roth IRA that was not a qualified distribution or from an inherited traditional IRA that has basis or you rolled over an inherited plan account to a Roth IRA. You may need to file more than one Form 8606, for more information, refer to IRS Publication 590 Individual Retirement Arrangements.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these steps.
- In the TurboTax search box, enter nondeductible ira and press the Enter key,
Then click on the jump to nondeductible ira link.
- On the Traditional IRA and Roth IRS screen, check the box(es) that apply for Traditional IRA, then click Continue.
- Answer the interviews until you reach the Any Nondeductible Contributions to [your] IRA? screen.
On that screen, check Yes and click continue
- On the Tell Us the Value of All Your Traditional IRA Accounts screen, fill in or verify the ending balance amount at the end of the year.
This information should be available on Form 5498 from your financial firm, or you can contact the firm.
- Click Continue and finish the interview.