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[[Problem: She did not report her non-deductible contributions with her income taxes. She has no
idea how much she contributed in which years and a succession of banks holding the IRA were
bought out and disappeared years ago.

Question: Is there any way to avoid paying taxes on the original non-deductible contributions she

Nope. Not really. Not without going back and researching the deposits and comparing those deposits with the tax returns in order to determine which contributions were deductible and which were not. As you are probably aware now, Mom should have filed Form 8606 each year to "track" her non-deductible contributions and her basis in the IRA.

If you ARE able to roll up your sleves and determine the basis of the IRA (i.e., non-deductible contributions), make sure to file Form 8606 with Mom's 1997 tax return.

TMF Taxes

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area ( and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area ( Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (

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