Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123146  
Subject: Re: IRA and IRS Form 8606 Date: 4/5/2001 4:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Can anyone tell me about the Federal requirement to file this form with the annual 1040? It is for nondeductible contributions to an IRA. I have never filed this in over ten years. Am I in big trouble, small trouble, or none at all? How do I get this corrected from here?

My advice is to file the old ones by themselves and bring your 2000 one up to date. Also make sure that you've kept all your records of contributions and your returns for the years in question.

The 8606 Part I is how you establish the previously-taxed basis in a traditional IRA. It will be an issue only when you start to take withdrawals and need to recover that basis tax-free.

Don't worry about the $50 penalty mentioned in the 8606 instructions. I don't think they've ever imposed it.

Phil Marti
VITA Volunteer
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Berkshire Hathaway

A Financial Prognostication
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.