Discussion:Form 8606 - Nondeductible IRA Contributions
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| Revision as of 05:58, 6 March 2009 Riley2 (Talk | contribs) (If the 8606 was) ← Previous diff |
Revision as of 06:10, 6 March 2009 Jake (Talk | contribs) (What if it was n) Next diff → |
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| {{ForumReplyPost|UserID=Riley2|Date=6 March 2009|Text=If the 8606 was not filed, then any elections that should have been made were not made. In other words, if the client wants basis from an otherwise deductible contribution, he really needs to file the 8606 to make a valid election.}} | {{ForumReplyPost|UserID=Riley2|Date=6 March 2009|Text=If the 8606 was not filed, then any elections that should have been made were not made. In other words, if the client wants basis from an otherwise deductible contribution, he really needs to file the 8606 to make a valid election.}} | ||
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| + | {{ForumReplyPost|UserID=Jake|Date=6 March 2009|Text=What if it was not an otherwise deductible contribution - i.e. not deductible due to a high income and already having a workplace pension plan?}} | ||
Revision as of 06:10, 6 March 2009
Discussion Forum Index --> Advanced Tax Questions --> Form 8606 - Nondeductible IRA Contributions
Discussion Forum Index --> Tax Questions --> Form 8606 - Nondeductible IRA Contributions
| 6 March 2009 | |
| I am running into clients that have in the past made nondeductible IRA contributions but did not file a Form 8086. In some situations their income level and pension coverage barred a deductible IRA contribution, In others, they just did not deduct. Is this fatal to calculating a basis for an IRA? Does the IRS keep track of these 8086 numbers anyway?
If I amend open years, do I just file the Form 8086 or do I have to do a 1040X? This came up as for some I have suggested a ROTH conversion now that values have sunk so low. For some the current value is less than their past nondeductible contributions. | |
| 6 March 2009 | |
| I think 8086 is an old computer processor. Form 8606 is where you would find basis information. It's not required to be filed until they take money out. However, it's definitely best practice to preparer it every year so that they can keep track of what their basis is. If in 20 or 30 years they're pulling money out whoever does that tax return would be very happy if they had an 8606. | |
| 6 March 2009 | |
| Oh rereading that, you might be talking about the year of contribution. They would file 8606 when they make the contribution as well. Not sure what would happen if they failed to. | |
| 6 March 2009 | |
| It is late - I meant Form 8606.
I thought I would examine all the IRA statements and prepare a 8606 for 2008 - fill in the prior basis, and the 2008 contribution. | |
| 6 March 2009 | |
| If the 8606 was not filed, then any elections that should have been made were not made. In other words, if the client wants basis from an otherwise deductible contribution, he really needs to file the 8606 to make a valid election. | |
| 6 March 2009 | |
| What if it was not an otherwise deductible contribution - i.e. not deductible due to a high income and already having a workplace pension plan? | |
