blue.onyx[at]verizon.net (John) writes:

- quote -

No. Form 8606 has *nothing* to do with 401(k) accounts.
8606 is used to document a non-deductible contribution to a
traditional IRA and to compute the taxability of traditional
IRA distributions when non-deductible contributions have
been made in the past, to document a conversion of a
traditional IRA to a Roth IRA, and to figure the taxable
portion of a premature Roth IRA distribution.

- quote -

Same answer.

- quote -

Now *here's* where you should have been using 8606, assuming
these were non-deductible contributions. If they were
deductible contributions, they would have shown up on the
front bottom of Form 1040 and not on 8606.

- quote -

It might be better to just file a separate 8606 for every
year in question.

- quote -

No.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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John wrote:

- quote -

Look at the title of the Form 8606: "Nondeductible IRAs."
This form has nothing to do with employer retirement plans.

- quote -

See above response.

- quote -

If you made nondeductible contributions to an IRA, you
should have completed Part I of a Form 8606 for each year
you made such a contribution. If you have not done that,
you should file the 8606 for each year you missed. Each
subsequent 8606 keeps a running tally of your cost basis.
When you start to take distributions and have to complete an
8606 to determine how much of the distribution is taxable,
the form is going to ask you to grab that basis off the last
8606 you filed.

- quote -

There's no problem keeping multiple retirement accounts.
However, it may not be the way to optimize your return as
you may have limited options on how the 401K assets are
invested. In addition, each 401K may have different rules
as to when you must start to take distributions.

--
Alan
http://taxtopics.net

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Having worked for a number of high tech companies over the
years I have collected a number (4) of different 401K plans.
After I left each company, I kept the 401K, and each is
doing fine. I just recently learned about the 8606 form.
My questions are:

1. do I need to fill out an 8606 for each of these 401K's?

2. I also have a retirement account from my very first job
(GE) from pre-401K days. does this need an 8606 too?

3. I have an IRA account too, and have been yearly
contributing $2K (recently $3.5k). I have never submitted
an 8606 before. I just figured out the IRA basis for the
8606. Is Uncle going to allow an 8606 to appear in my 2003
taxes for the first time with a large basis?

4. Is there any problem with having/keeping my old 401K's
as well as a personal IRA?

Lot's of questions from a confused taxpayer, I know. Thanks
for your attention!

John

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