non deductible ira
we have a client that was making “non deductible IRA” contributions but failed to complete the form 8606 . would they be able to go back and complete the forms retroactively?
we have a client that was making “non deductible IRA” contributions but failed to complete the form 8606 . would they be able to go back and complete the forms retroactively?
Permalink Submitted by PaulC on Thu, 2024-03-21 15:37
Yes, pull up the form 8606 at IRS.gov. The form can be submitted separately, as is stated in the instructions. It doesn’t require filing an amended tax return.
However, if the omission of basis from the form 8606 affects the taxation of prior distributions from the affected IRA(s), then that can only be corrected by filing an amended return for the applicable year. An amended return isn’t required for compliance since the omission would mean the taxpayer overstated taxable income by not claiming the allowed portion of contribution basis. The IRS is fine with that sort of error, so depending on the magnitude of the tax impact it may simply not be worth it to do an amended return.