Get 2009 Form 8606. Nondeductible IRAs

Also use Form 8606 to figure the basis in your IRA(s) and the taxable part of any distributions you received in 1995 if you have ever made nondeductible contributions. Your basis is the total of all your nondeductible IRA contributions minus the total of all nontaxable IRA distributions received.

Any money you contribute to a traditional IRA that you do not deduct on your tax return is a “nondeductible contribution.” You still must report these contributions on your return, and you use Form 8606 to do so.

Penalty for Not Filing If you are required to file Form 8606 to report a nondeductible contribution to a traditional IRA for 2022, but don't do so, you must pay a $50 penalty, unless you can show reasonable cause.

Penalty for Not Filing If you are required to file Form 8606 to report a nondeductible contribution to a traditional IRA for 2022, but don't do so, you must pay a $50 penalty, unless you can show reasonable cause.

Someone who makes nondeductible (after-tax) contributions into an individual retirement account is required to fill out Form 8606.

The name gives it away: A nondeductible IRA is a traditional IRA for which you don't get an immediate tax deduction for your contributions. While there's no tax benefit for these contributions, any investment returns earned in the account will be tax-deferred until you take distributions in retirement.

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.

We need it to ensure that taxpayers are complying with these laws and to allow us to figure and collect the right amount of tax. You are required to give us this information. Who Must File. —You must file Form 8606 for 1987 if you make nondeductible contributions to your IRA(s).