Get Form 8606 - Internal Revenue Service - Irs

You can't take any deduction for IRA contributions if you have a retirement plan at work and your income is more than: $78,000 if you're single. $129,000 if married filing jointly.

Failure to file Form 8606 for a distribution could result in the IRA owner (or beneficiary) paying income tax and the additional 10% early distribution penalty tax on amounts that should be tax free.

—You must file Form 8606 for 1987 if you make nondeductible contributions to your IRA(s). If you and your spouse each choose to make nondeductible IRA contributions, you each must file a Form 8606.

Failure to file Form 8606 for a distribution could result in the IRA owner (or beneficiary) paying income tax and the additional 10% early distribution penalty tax on amounts that should be tax free.

In 2023, if you are a single filer and you are covered by a retirement plan at work, you're no longer eligible to deduct contributions to a traditional IRA at incomes of $83,000 or more. If you're married filing jointly and you have a retirement plan at work, that income threshold is $136,000 or more.

Use Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.

The contribution limits for a non-deductible IRA are the same as for traditional IRAs. For 2023, the maximum allowable contribution is $6,500, and the catch-up contribution is $1,000 if you are age 50 or older.

You don't have to file Form 8606 solely to report regular contributions to Roth IRAs. But see What Records Must I Keep, later. File 2022 Form 8606 with your 2022 Form 1040, 1040-SR, or 1040-NR by the due date, including extensions, of your return.