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 Mon, 2024-03-18 15:46
Form 8606 can be filed separately. If not working with a tax professional, go to IRS.gov and download the forms and instructions. Filing it to correct non-deduction contributions adding to basis doesn’t require filing an amended return, just the forms 8606. HOWEVER, if distributions have been taken from IRAs and the taxable amount of those distributions needs to be corrected, that would require an amended return for the year in question.
Permalink Submitted by John Worrel on Tue, 2024-03-26 17:52
I have a question- somewhat related. I have a client who told me that she made a non deductible contribution back in 2014.
She is checking to see if she filed a 8606 then and I assume would have to keep filing that every year ? I have a feeling that she has not kept up with this as she files her return on line with HR Block. She has been taking RMDS now for the last 6 years or so.-
from your previous response , would she have to amend her 2014 return (only) to add the 8606 or all of her returns since then to get this right ?
Permalink Submitted by John Worrel on Tue, 2024-03-26 18:48
Follow up:
I have now learned that when she was having a CPA prepare returns for her the 8606 was filed -from 2014 until 2017- when she retired and began to prepare the return herself and apparently did not include the 8606.