IRS 8606 PDF Details

Understanding the complexities of saving for retirement is crucial, especially when it comes to the tax implications of your contributions to Individual Retirement Accounts (IRAs). The Form 8606, provided by the Internal Revenue Service (IRS), is a significant tool for those who have made nondeductible contributions to their traditional IRAs or have engaged in any transactions with their Roth IRAs. Specifically designed to accompany your tax return forms like the 1040, 1040-SR, or 1040-NR, Form 8606 helps you track the basis of your nondeductible contributions to ensure that you're not taxed again when those funds are withdrawn. This form becomes necessary if you've contributed post-tax dollars to your traditional IRA, made a conversion from a traditional to a Roth IRA, or taken distributions from any of these accounts within the tax year. Moreover, it serves to distinguish between the taxable and non-taxable portions of your IRAs distributions and conversions, guiding through the calculations with sections dedicated to traditional IRA deductions, Roth IRA conversions, and distributions from Roth IRAs. Ensuring accurate completion of this form can safeguard you from unnecessary taxes and penalties, emphasizing the importance of meticulous record-keeping for all your retirement accounts.

QuestionAnswer
Form Name8606 Form
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other names8606, form 8606 irs, form irs, form 8606

Form Preview Example

Form 8606

 

Nondeductible IRAs

 

 

OMB No. 1545-0074

 

 

 

 

 

 

2022

Department of the Treasury

Go to www.irs.gov/Form8606 for instructions and the latest information.

 

 

 

Attach to 2022 Form 1040, 1040-SR, or 1040-NR.

 

 

Attachment

Internal Revenue Service

 

 

 

Sequence No. 48

Name. If married, file a separate form for each spouse required to file 2022 Form 8606. See instructions.

Your social security number

 

 

 

 

 

Fill in Your Address

Home address (number and street, or P.O. box if mail is not delivered to your home)

 

 

Apt. no.

Only if You Are

 

 

 

 

 

City, town or post office, state, and ZIP code. If you have a foreign address, also complete the spaces below (see instructions).

Filing This Form by

Itself and Not With

 

 

 

 

 

Foreign country name

Foreign province/state/county

Foreign postal code

Your Tax Return

Part I Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE IRAs

Complete this part only if one or more of the following apply.

• You made nondeductible contributions to a traditional IRA for 2022.

• You took distributions from a traditional, SEP, or SIMPLE IRA in 2022 and you made nondeductible contributions to a traditional IRA in 2022 or an earlier year. For this purpose, a distribution does not include a rollover (other than a repayment of a qualified disaster distribution, if any, from 2022 Form(s) 8915-F (see instructions)), qualified charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.

• You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2022 and you made nondeductible contributions to a traditional IRA in 2022 or an earlier year.

1

Enter your nondeductible contributions to traditional IRAs for 2022, including those made for 2022

 

 

 

from January 1, 2023, through April 18, 2023. See instructions

. . . . . . . . . . . . .

1

 

2

Enter your total basis in traditional IRAs. See instructions . .

. . . . . . . . . . . . .

2

 

3

Add lines 1 and 2

. . . . . . . . . . . . .

3

 

 

In 2022, did you take a distribution

 

No

 

 

Enter the amount from line 3 on line 14.

 

 

 

 

 

 

 

 

from traditional, SEP, or SIMPLE IRAs,

 

 

 

 

Do not complete the rest of Part I.

 

 

4

or make a Roth IRA conversion?

 

Yes

 

 

Go to line 4.

 

 

 

 

 

 

Enter those contributions included on line 1 that were made from January 1, 2023, through April 18, 2023

4

 

5

Subtract line 4 from line 3

. . . . . . . . . . . . .

5

 

6Enter the value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2022, plus any outstanding rollovers. Subtract certain repayments of qualified

disaster distributions, if any, from 2022 Form(s) 8915-F (see instructions) . .

6

7Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2022. Do not include rollovers (other than repayments of qualified disaster distributions, if any, from 2022 Form(s) 8915-F (see instructions)), qualified charitable distributions, a one-time distribution to fund an HSA, conversions to a Roth

IRA, certain returned contributions, or recharacterizations of traditional

IRA

 

contributions (see instructions)

.

7

8Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to

Roth IRAs in 2022. Also, enter this amount on line 16 . .

. . . . . . .

8

 

9 Add lines 6, 7, and 8

9

 

 

 

10Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3

places. If the result is 1.000 or more, enter “1.000”

10

×

.

11Multiply line 8 by line 10. This is the nontaxable portion of the amount you

converted to Roth IRAs. Also, enter this amount on line 17

11

12Multiply line 7 by line 10. This is the nontaxable portion of your distributions

 

that you did not convert to a Roth IRA

12

 

 

13

Add lines 11 and 12. This is the nontaxable portion of all your distributions

 

13

14

Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2022 and earlier years .

 

14

15a

Subtract line 12 from line 7

15a

bEnter the amount on line 15a attributable to qualified disaster distributions, if any, from 2022 Form(s) 8915-F (see instructions). Also, enter this amount on 2022 Form(s) 8915-F, line 18, as applicable (see

instructions)

15b

cTaxable amount. Subtract line 15b from line 15a. If more than zero, also include this amount on 2022 Form 1040, 1040-SR, or 1040-NR, line 4b . . . . . . . . . . . . . . . . . . . . 15c Note: You may be subject to an additional 10% tax on the amount on line 15c if you were under age 59½ at the time of the distribution. See instructions.

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 63966F

Form 8606 (2022)

Form 8606 (2022)

Page 2

Part II 2022 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs

Complete this part if you converted part or all of your traditional, SEP, and SIMPLE IRAs to a Roth IRA in 2022.

16If you completed Part I, enter the amount from line 8. Otherwise, enter the net amount you converted

from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2022 . . . . . . . . . . . . .

17If you completed Part I, enter the amount from line 11. Otherwise, enter your basis in the amount on

line 16 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .

18Taxable amount. Subtract line 17 from line 16. If more than zero, also include this amount on 2022 Form 1040, 1040-SR, or 1040-NR, line 4b . . . . . . . . . . . . . . . . . . . .

Part III Distributions From Roth IRAs

16

17

18

Complete this part only if you took a distribution from a Roth IRA in 2022. For this purpose, a distribution does not include a rollover (other than a repayment of a qualified disaster distribution (from 2022 Form(s) 8915-F (see instructions)), qualified charitable distribution, one-time distribution to fund an HSA, recharacterization, or return of certain contributions (see instructions).

19

Enter your total nonqualified distributions from Roth IRAs in 2022, including any qualified first-time

 

 

 

homebuyer distributions, and any qualified disaster distributions from 2022 Form(s) 8915-F (see

 

 

 

instructions)

. . . .

19

 

20

Qualified first-time homebuyer expenses (see instructions). Do not enter more than $10,000 reduced

 

 

 

by the total of all your prior qualified first-time homebuyer distributions

. . . .

20

 

21

Subtract line 20 from line 19. If zero or less, enter -0-

. . . .

21

 

22

Enter your basis in Roth IRA contributions (see instructions). If line 21 is zero, stop here .

. . . .

22

 

23

Subtract line 22 from line 21. If zero or less, enter -0- and skip lines 24 and 25. If more than zero, you

 

 

 

may be subject to an additional tax (see instructions)

. . . .

23

 

24

Enter your basis in conversions from traditional, SEP, and SIMPLE IRAs and rollovers from qualified

 

 

 

retirement plans to a Roth IRA. See instructions

. . . .

24

 

25a

Subtract line 24 from line 23. If zero or less, enter -0- and skip lines 25b and 25c . . .

. . . .

25a

 

b Enter the amount on line 25a attributable to qualified disaster distributions, if any, from 2022 Form(s)

 

 

 

8915-F (see instructions). Also, enter this amount on 2022 Form(s) 8915-F, line 19, as applicable (see

 

 

 

instructions)

. . . .

25b

 

c

Taxable amount. Subtract line 25b from line 25a. If more than zero, also include this amount on 2022

 

 

 

Form 1040, 1040-SR, or 1040-NR, line 4b

. . . .

25c

 

Sign Here Only if You

Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my knowledge and

Are Filing This Form

belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

 

 

 

 

 

 

 

 

 

 

by Itself and Not With

 

 

 

 

 

 

 

 

 

 

Your Tax Return

 

 

 

 

 

 

 

 

 

 

 

Your signature

 

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid

 

Print/Type preparer’s name

Preparer’s signature

Date

 

 

 

Check

if

PTIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

self-employed

 

Preparer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Firm’s name

 

 

 

 

 

 

 

Firm’s EIN

 

Use Only

 

 

 

 

 

 

 

 

Firm’s address

 

 

 

 

 

Phone no.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Form 8606 (2022)

How to Edit 8606 Form Online for Free

Our finest computer programmers have worked collectively to get the PDF editor which you can begin using. This particular app makes it easy to prepare form 8606 documentation quickly and with ease. This is certainly all you have to undertake.

Step 1: Initially, hit the orange button "Get Form Now".

Step 2: After you access our form 8606 editing page, there'll be all the actions it is possible to undertake about your template in the upper menu.

In order to fill in the form 8606 PDF, enter the information for all of the segments:

step 1 to completing form 8606

The system will need you to complete the Enter your nondeductible, Divide line by line Enter the, places If the result is or more, Multiply line by line This is, converted to Roth IRAs Also enter, Multiply line by line This is, that you did not convert to a Roth, a Subtract line from line, Enter the amount on line a, c Taxable amount Subtract line b, Form SR or NR line b Note You, For Privacy Act and Paperwork, Cat No F, and Form field.

step 2 to completing form 8606

Indicate the key data in Conversions From Traditional SEP, If you completed Part I enter the, Part III, Distributions From Roth IRAs, Enter your total nonqualified, a Subtract line from line If, and Enter the amount on line a box.

Entering details in form 8606 stage 3

The Enter the amount on line a, c Taxable amount Subtract line b, Form SR or NR line b, Sign Here Only if You Are Filing, Your signature, Under penalties of perjury I, Paid Preparer Use Only, PrintType preparers name, Preparers signature, Date, Firms name Firms address, Date, Check if selfemployed, PTIN, and Firms EIN Phone no area is going to be place to include the rights and obligations of each party.

form 8606 Enter the amount on line a, c Taxable amount Subtract line b, Form SR or NR line b, Sign Here Only if You Are Filing, Your signature, Under penalties of perjury I, Paid Preparer Use Only, PrintType preparers name, Preparers signature, Date, Firms name Firms address, Date, Check if selfemployed, PTIN, and Firms EIN Phone no fields to complete

Step 3: Select the "Done" button. Next, you can export the PDF file - save it to your device or deliver it through email.

Step 4: Create duplicates of the file. This is going to prevent forthcoming worries. We don't see or display your information, as a consequence you can be confident it is secure.

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Related Resources

  • Instructions for Form 8606 (2020) | Internal Revenue Service

    Section references are to the Internal Revenue Code unless otherwise noted. For the latest information about developments related to 2020 Form 8606 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form8606. If you or a member of your household was impacted by the coronavirus and you made withdrawals from your retirement plan in 2020 before December 31, you may have coronavirus-related distributions eligible for special tax benefits.

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  • What is IRS Form 8606: Nondeductible IRAs - TurboTax Tax Tips & Videos

    Taxpayers use Form 8606 to report a number of transactions relating to what the Internal Revenue Service (IRS) calls "Individual Retirement Arrangements" and what most people just call IRAs. These are accounts that provide tax incentives to save and invest money for retirement. Generally speaking, in 2020 taxpayers can deduct up to $6,000 per year for money they contribute to a traditional IRA, or $7,000 if they’re age 50 or older.

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