Instructions for IRS Form 8606 Nondeductible Iras

This document contains official instructions for IRS Form 8606 , Nondeductible Iras - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury.

FAQ

Q: What is IRS Form 8606?
A: IRS Form 8606 is a tax form used to report contributions and conversions to nondeductible IRAs.

Q: What are nondeductible IRAs?
A: Nondeductible IRAs are individual retirement accounts where contributions are made with after-tax dollars.

Q: Why do I need to file Form 8606?
A: You need to file Form 8606 to document any contributions or conversions made to nondeductible IRAs for tax purposes.

Q: Is there a deadline for filing Form 8606?
A: Form 8606 is generally filed with your annual tax return by the standard tax filing deadline, usually April 15th.

Q: Can I deduct contributions to a nondeductible IRA?
A: No, contributions to a nondeductible IRA are made with after-tax dollars and are not deductible.

Q: Are earnings on a nondeductible IRA taxed?
A: Earnings on a nondeductible IRA are tax-deferred until withdrawn, at which point they may be subject to taxation.

Q: What happens if I fail to file Form 8606?
A: Failing to file Form 8606 when required may result in penalties or interest on any tax owed.

Q: Can I e-file Form 8606?
A: Yes, you can e-file Form 8606 if you are using tax software that supports this form.

Q: Do I need to file Form 8606 every year?
A: You generally only need to file Form 8606 in the years when you make contributions or conversions to nondeductible IRAs.