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
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra