UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: rasheed One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75794  
Subject: Re: Roth IRA (via stocks) questions Date: 12/31/1998 6:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
trudyKAS wrote: <<The IRS requires the 8606 be filed in any year in which you have a nondeductible IRA investment. I have filed one every year since 1984.

Aside from penalties for not filing this form and keeping copies virtually forever, you might be faced with paying taxes on these already taxed nondeductible contributions when you want to take distributions on your IRA.

The 8606's you keep over the years keep a record of your total nondeductible contributions which are your basis for determining that portion of your distribution which is not again taxable.

That seems a good enough reason for me to comply.>>


These sound like good reasons to file the form, but I am the current thought that the form (December edition) wasn't written correctly if this is what the IRS wanted. It may seem that the IRS assume everyone who has a 1998 Roth IRA did it through a conversion from another IRA.

The Roth IRA contribution sheet in 8606 instructions seems to point that a Roth IRA is like a traditional IRA (by its direction on what line to place your max allowed contribution).

Right now, I feel I will be more penalized if I file the form because there just doesn't seem to be a part of the form that I can properly use. The only Roth IRA holders that I can see being able to do this form in its current appearance are Roth IRA rollovers and distributors.

Thanks for your input.
Rasheed
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement