Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
In a quick review of my old tax returns, it appears that I filed a 8606 in 3 of the 4 years I made non deductible contributions. Do I understand that I would have to pay a penalty (I think I read $50, but I am not sure) for any year I failed to file a 8606?

To get all the facts in one place:

Your wife has a traditional IRA which is worth about $25,000 and has $22,000 of nondeductible contributions, most of which have been properly reported on Form 8606. She is over 59 1/2 and wants to move these funds to a taxable investment account.

We're almost to the point that we can answer your question about the tax consequence of this move, but there's still one piece of missing information. Does she have any other traditional IRA accounts, including SEP, SIMPLE, and rollovers from employer plans?

As for the missing 8606, what tax year is it for, and where does it fall in the sequence of years contributions were made?

Phil
Rule Your Retirement Home Fool
Print the post  

Announcements

Disclaimer:
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.
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.
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.