Fillable Form 8606

What is Form 8606?

Form 8606 is an important tax form filed with the Internal Revenue Service in order to report and track transactions concerning Individual Retirement Arrangements (IRAs), including Traditional and Roth IRAs.

How do I fill out Form 8606?

A fillable copy of Form 8606 can be found here. Make sure to have all of the relevant documents prepared in order to ensure that all of the information you enter is correct and updated.

Name

Enter your full legal name. If you are married, file separate forms for yourself and your spouse (if they are required to file Form 8606 as well).

Social Security Number

Enter your Social Security Number.

Address Information

Enter the following information about your address, whenever applicable.

• Home Address OR PO Box
  • Number
  • Street
• Apartment Number
• City, Town, or Post Office
• ZIP Code
• Foreign Country Name
• Foreign Province/State/County
• Foreign Postal Code

Amended Return

If this form is an amended return, check the box provided.

Part I - Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and Simple IRAs

Complete this part only if one or more of the following conditions apply:

• You made nondeductible contributions to a traditional IRA for 2023
• You took distributions from a traditional, traditional SEP, or traditional SIMPLE IRA in 2023 and you made nondeductible contributions to a traditional IRA in 2023 or an earlier year. For this purpose, a distribution does not include a rollover (other than certain qualified disaster distribution repayments from 2023 Form(s) 8915-F), qualified charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions
• You converted part, but not all, of your traditional, traditional SEP, and traditional SIMPLE IRAs to Roth, Roth SEP, or Roth SIMPLE IRAs in 2023 and you made nondeductible contributions to a traditional IRA in 2023 or an earlier year.

Then enter the values asked for in each of the following lines.

Line 1

Enter your nondeductible contributions to traditional IRAs for 2018, including those made for 2018 from January 1, 2019, through April 15, 2019.

Line 2

Enter your total basis in Traditional IRAs.

Line 3

Add Lines 1 and 2 and enter the sum. Then, if you took a distribution from traditional, SEP, or SIMPLE IRAs, or make a Roth IRA conversion, proceed to Line 4 as normal. If not, enter the amount on this Line on Line 14, and do not complete any other section in Part I.

Line 4

Enter those contributions included on line 1 that were made from January 1, 2019, through April 15, 2019.

Line 5

Subtract Line 4 from Line 3, then enter the difference.

Line 6

Enter the value of all your traditional, traditional SEP, and traditional SIMPLE IRAs as of December 18, 2018, plus any outstanding rollovers. Subtract certain repayments of qualified 2017 disaster distributions. If the result is zero or less, enter 0.

Line 7

Enter your distributions from traditional, traditional SEP, and traditional SIMPLE IRAs in 2018, not including rollovers (other than repayments of qualified 2017 disaster distributions, if any, from 2018 Form(s) 8915B (see instructions)); qualified charitable distributions; a one-time distribution to fund an HSA; conversions to a Roth IRA; certain returned contributions; or recharacterizations of traditional IRA contributions.

Line 8

Enter the net amount you converted from traditional, SEP, and Simple IRAs to Roth IRAs in 2018. Also enter this amount on Line 16.

Line 9

Add the amounts on Lines 6, 7, and 8 and enter the sum.

Line 10

Divide Line 5 by Line 9, then enter the quotient rounded to at least 3 places. If the quotient is 1.000 or more, enter 1.000.

Line 11

Multiply Line 8 by Line 10, and enter the product.

Line 12

Multiply Line 7 by Line 10, and enter the product.

Line 13

Add Lines 11 and 12 and enter the sum.

Line 14

Subtract Line 13 from Line 3 and enter the difference.

Line 15a

Subtract Line 12 from Line 7.

Line 15b

Enter the amount on Line 15a that is attributable to qualified 2017 disaster distributions from 2018 Form 8915B. Enter this amount on 2018 Form 8915B Line 22 as well.

Line 15c

Subtract Line 15b from Line 15a, and enter the difference. If the difference is greater than zero, include this amount on Form 1040 Line 4b or Form 1040NR, Line 17b.

Part II - 2018 Conversions From Traditional, SEP, or Simple IRAs to Roth IRAs

Line 16

If you completed Part I, enter the amount from Line 8 here. Otherwise, enter the net amount converted from traditional, SEP, or Simple IRAs to Roth IRAs in 2018.

Line 17

If you completed Part I, enter the amount from Line 11 here. Otherwise, enter your basis in the amount on Line 16.

Line 18

Subtract Line 17 from Line 16. If the difference is greater than zero, include this amount on Form 1040 Line 4b or Form 1040NR line 17b.

Part III - Distributions From Roth IRAs

Only complete this part if you took a distribution from a Roth IRA in 2018

Line 19

Enter your total nonqualified distributions from Roth IRAs in 2018.

Line 20

Enter your qualified first-time homebuyer expenses. Do not enter an amount greater than $10,000.

Line 21

Subtract Line 20 from Line 19 and enter the difference. If the difference is zero or less, enter 0.

Line 22

Enter your basis in Roth IRA contributions. If Line 21 is zero, do not proceed further.

Line 23

Subtract Line 22 from Line 21 and enter the difference. If the difference is zero or less, enter 0 and skip Lines 24 and 25.

Line 24

Enter your basis in conversions from traditional, SEP, and simple IRAs and rollovers from qualified retirement plans to a Roth IRA.

Line 25a

Subtract Line 24 from Line 23 and enter the difference. If the difference is zero or less, enter 0 and skip 25b and 25c.

Line 25b

Enter the amount on Line 25a attributable to qualified 2017 disaster distributions from 2018 Form 8915B.

Line 25c

Subtract Line 25b from Line 25a and enter the difference. If the difference is greater than zero, include this amount on Form 1040 Line 4b or Form 1040NR line 17b.

Signature

Sign the form in the space provided, then enter the date you signed the form.

Paid Preparer Information

If you paid someone to prepare this form on your behalf, have them enter the following information about themselves in the spaces provided:

• Name
• Signature
• Date signed
• Self-employed (check box if yes, skip if not)
• PTIN
• Firm Name
• Firm EIN
• Firm Address
• Phone Number

Frequently Asked Questions (FAQs)

What is an IRA?

An Individual Retirement Account (IRA) is a long-term savings account that individuals with earned income can use to save for the future while availing of particular tax advantages.

Who uses IRAs?

IRAs are designed primarily for self-employed people who do not have access to workplace retirement accounts such as the 401(k), which is available only through employers.

What is a Roth IRA?

A Roth IRA is a type of tax-advantaged individual retirement account to which you can contribute after-tax dollars toward your retirement.

What is a SEP IRA?

A Simplified Employee Pension (SEP) is an IRA that an employer or a self-employed person can establish. The employer is allowed a tax deduction for contributions made to a SEP IRA and makes contributions to each eligible employee’s plan on a discretionary basis.

When should Form 8606 be filed?

Form 8606 is typically filed with your annual tax return by the due date, including extensions.

Can Form 8606 be filed electronically?

Yes, Form 8606 can be filed electronically along with your tax return.

Can Form 8606 be amended?

Yes, Form 8606 can be amended using Form 1040X if errors are discovered after filing.

Do I need to file Form 8606 if I only made deductible contributions to my Traditional IRA?

No, Form 8606 is not required for deductible contributions, as they are already reported on your tax return.

What is the penalty for not filing Form 8606 when required?

The penalty for not filing Form 8606 when required can vary but may include fines or interest on the resulting unpaid or unreported taxes, as well as legal action from the IRS.

Does Form 8606 affect my eligibility for IRA deductions?

Yes, Form 8606 can affect your eligibility for IRA deductions, particularly if you have made nondeductible contributions to a Traditional IRA.