What is Form 8606: Nondeductible IRAs used for?
Form 8606: Nondeductible IRAs is used to report nondeductible contributions to traditional IRAs, distributions from Roth IRAs (and other IRAs in certain cases), and conversions to Roth IRAs.
We'll automatically generate Form 8606 if any of these situations apply to you:
- 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 part a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2014.
- 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.