IRS FORM 8606
Hi: If someone rolls after-tax contributions from a 401k plan to a Traditional IRA is the account holders responsibility to track that annually by filling the IRS 8606 form with IRS? Thanks.
Hi: If someone rolls after-tax contributions from a 401k plan to a Traditional IRA is the account holders responsibility to track that annually by filling the IRS 8606 form with IRS? Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2014-10-09 18:38
Yes, however the IRS Instructions indicate that the 8606 should not be filed to report the rollover of after tax money until the next time the 8606 would otherwise be filed. At that time the amount of added basis is added to line 2 of the 8606. The 8606 is not filed every year, only when one of the occurrences indicated on the front of the form applied to that year.