IRS Form 8606 Questions

#2 02-17-2004, 12:56 AM

John Newcomer wrote:

- quote -

> I'm preparing my own return this year, and I'm not sure if I
> need a form 8606 or not.
> In 1998, I had AGI > 150k. Both my wife and I contributed
> $2000 to our Roth IRAs. Because of the high AGI, a portion
> was disallowed. We "re-characterized" the excess by putting
> it in our traditional IRAs as "non-deductible"
> contributions, and we filed an 8606. That was the only year
> with an AGI over 150k.
> To complicate matters (I think) in 1999, I converted some of
> my traditional IRA to a Roth, and again, we filed 8606s. (I
> don't know if this has any affect.)
> I have not filed form 8606 since then.

Under the original rules starting in 1987, you should have
filed an 8606 for every year since you made a non-deductible
contribution. I note that the IRS noted that many people
didn't do this and thus relaxed the situation (the
instructions now say to refer back to the last 8606 you
filed for "last year's" amount of non-deducted basis).

- quote -

> Now, for 2003, I'm preparing my own return using TurboTax,
> and it is asking me about those forms. It sounds as if I
> should have been filing 8606 each year?!?
> So, my questions are:
> 1. Do I need to file form 8606 for 2003?
> 2. *Should* I have filed 8606 for 2000, 2001, and 2002?
> 3. Do I need to file 8606 in future years?

Answered above.

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#1 02-12-2004, 07:12 AM

"A.G. Kalman" wrote:
- quote -

> John Newcomer wrote:

> > I'm preparing my own return this year, and I'm not sure if I
> > need a form 8606 or not.
> > > In 1998, I had AGI > 150k. Both my wife and I contributed
> > $2000 to our Roth IRAs. Because of the high AGI, a portion
> > was disallowed. We "re-characterized" the excess by putting
> > it in our traditional IRAs as "non-deductible"
> > contributions, and we filed an 8606. That was the only year
> > with an AGI over 150k.
> > > To complicate matters (I think) in 1999, I converted some of
> > my traditional IRA to a Roth, and again, we filed 8606s. (I
> > don't know if this has any affect.)
> > > I have not filed form 8606 since then.
> > > Now, for 2003, I'm preparing my own return using TurboTax,
> > and it is asking me about those forms. It sounds as if I
> > should have been filing 8606 each year?!?
> > > So, my questions are:
> > > 1. Do I need to file form 8606 for 2003?

> Not unless you took a distribution from that IRA or made
> nondeductible contribution for 2003.

Wrong. It's _ANY_ IRA.

- quote -

> > 2. *Should* I have filed 8606 for 2000, 2001, and 2002?

> Not unless you took a distribution from that IRA or made
> nondeductible contributions in those years.

Ditto.

- quote -

> > 3. Do I need to file 8606 in future years?

> Only if you take a distribution from that IRA or made
> nondeductible contributions in any year.

Ditto.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

02-11-2004, 02:56 PM

John Newcomer wrote:

- quote -

> I'm preparing my own return this year, and I'm not sure if I
> need a form 8606 or not.
> In 1998, I had AGI > 150k. Both my wife and I contributed
> $2000 to our Roth IRAs. Because of the high AGI, a portion
> was disallowed. We "re-characterized" the excess by putting
> it in our traditional IRAs as "non-deductible"
> contributions, and we filed an 8606. That was the only year
> with an AGI over 150k.
> To complicate matters (I think) in 1999, I converted some of
> my traditional IRA to a Roth, and again, we filed 8606s. (I
> don't know if this has any affect.)
> I have not filed form 8606 since then.
> Now, for 2003, I'm preparing my own return using TurboTax,
> and it is asking me about those forms. It sounds as if I
> should have been filing 8606 each year?!?
> So, my questions are:
> 1. Do I need to file form 8606 for 2003?

Not unless you took a distribution from that IRA or made
nondeductible contribution for 2003.

- quote -

> 2. *Should* I have filed 8606 for 2000, 2001, and 2002?

Not unless you took a distribution from that IRA or made
nondeductible contributions in those years.

- quote -

> 3. Do I need to file 8606 in future years?

Only if you take a distribution from that IRA or made
nondeductible contributions in any year.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 02-10-2004, 04:47 AM

I'm preparing my own return this year, and I'm not sure if I
need a form 8606 or not.

In 1998, I had AGI > 150k. Both my wife and I contributed
$2000 to our Roth IRAs. Because of the high AGI, a portion
was disallowed. We "re-characterized" the excess by putting
it in our traditional IRAs as "non-deductible"
contributions, and we filed an 8606. That was the only year
with an AGI over 150k.

To complicate matters (I think) in 1999, I converted some of
my traditional IRA to a Roth, and again, we filed 8606s. (I
don't know if this has any affect.)

I have not filed form 8606 since then.

Now, for 2003, I'm preparing my own return using TurboTax,
and it is asking me about those forms. It sounds as if I
should have been filing 8606 each year?!?

So, my questions are:

1. Do I need to file form 8606 for 2003?

2. *Should* I have filed 8606 for 2000, 2001, and 2002?

3. Do I need to file 8606 in future years?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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