Form 8606
Client processed Roth conversions for several years now, going back to 2007….the conversion was recorded on the tax returns but we just realized that form 8606 never generated. What do we do now?
Client processed Roth conversions for several years now, going back to 2007….the conversion was recorded on the tax returns but we just realized that form 8606 never generated. What do we do now?
Permalink Submitted by Alan Spross on Thu, 2011-04-14 20:49
Was there any basis is the IRA, or 100% pre tax?
The taxable amount was entered directly on line 15b, and therefore the tax paid is correct?
Permalink Submitted by Wendy Mommaerts on Fri, 2011-04-15 00:13
Yes the taxes have been paid.
Permalink Submitted by Alan Spross on Fri, 2011-04-15 02:29
If there was no basis in the TIRA, client will probably be OK not amending the returns because there is no change to the taxes and no other carryover effects from not having completed the 8606. If 2010 is one of those years, it should be amended because of all the special provisions surrounding 2010 conversions.
Client also needs to keep track of the dollar value of these conversions in the event that non qualified distributions include conversion dollars within 5 years of the conversion.