Thanks I think I am understanding this better. I have filed one and it's years ago now. It was $5500 and since then, no deductions, no non-deductible contributions, so I guess I am still at $5500 basis. I now find this calculation, in fact, not difficult.What do you mean by the basis isn't tracked? It doesn't change. Almost anything you do to the IRA that would change the basis would have required a form 8606. If you did not need to file a form 8606 (due to no contributions to that account or withdrawals or conversions from that account), your basis did not change, and you can find the value on the last 8606 you did file, no matter how many years earlier.Well what's interesting is (a) filing a form 8606 one year, due to making non-deductible contributions for that year. Then, (b) not filling a form 8606 for several subsequent years, since there were no non-deductible contributions in those years.
Given this sequence, the basis isn't "tracked" via form 8606. I suppose it needs to be calculated somehow. I don't really understand whether form 8606 is perpetually required, whenever there is an extant basis. But would it be useful, yes it would.
There are three things that could change the basis without necessitating a form 8606: an after-tax 401(k) rollover into the IRA, a return of excess contributions after filing the previous year's form, or a transfer incident to divorce.
Good feature. My 8606 was filed manually. Suppose I need to just keep my records, remember.I use TurboTax, and you have to find the option to print the actual forms. The basis shows up there for me even though it’s been a decade since we last made a contribution.
Statistics: Posted by ladders11 — Wed Aug 21, 2024 10:25 pm