IRS Form 8606 completed correctly?

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Topic Author
afr
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IRS Form 8606 completed correctly?

Post by afr »

[Note that OP has a previous thread discussing some background on this situation viewtopic.php?t=393186. Moderator Pops1860]

Hi,
I'm just interested in whether my 8606 appears to be completed correctly. In May,2024 I rolled over $101,058.22 from my tIRA to my 401k and converted $83,555.86($80,000 in basis) from my tIRA to RothIRA.
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Thanks
Last edited by afr on Mon Feb 03, 2025 8:52 am, edited 1 time in total.
rkhusky
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Re: IRS Form 8606

Post by rkhusky »

Part I is only if you had nondeducted contributions to the tIRA. And the basis in part II is the nondeducted contribution basis (not the amount of contributions, which is another usage of basis). And if you weren’t deducting your tIRA contributions through the years, you should have been filing 8606’s each year and line 1 should not be zero.
Last edited by rkhusky on Mon Feb 03, 2025 9:08 am, edited 2 times in total.
Topic Author
afr
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Re: IRS Form 8606

Post by afr »

rkhusky wrote: Mon Feb 03, 2025 8:51 am Part I is only if you had nondeducted contributions. And the basis in part II is for nondeducted contribution basis (not the amount of contributions, which is another usage of basis).
I did not make any non-deductible contributions in 2024(last time was in 2021 and discontinued after that). All of my prior tIRA contributions were non-deductible and an f8606 was submitted with my returns. So then am I to assume the only portion of the f8606 that I need to complete and forward with my tax return is Part II?
rkhusky
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Re: IRS Form 8606

Post by rkhusky »

afr wrote: Mon Feb 03, 2025 9:02 am
rkhusky wrote: Mon Feb 03, 2025 8:51 am Part I is only if you had nondeducted contributions. And the basis in part II is for nondeducted contribution basis (not the amount of contributions, which is another usage of basis).
I did not make any non-deductible contributions in 2024(last time was in 2021 and discontinued after that). All of my prior tIRA contributions were non-deductible and an f8606 was submitted with my returns. So then am I to assume the only portion of the f8606 that I need to complete and forward with my tax return is Part II?
In that case you would have to fill out Part I.
Last edited by rkhusky on Mon Feb 03, 2025 9:30 am, edited 1 time in total.
Topic Author
afr
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Re: IRS Form 8606

Post by afr »

rkhusky wrote: Mon Feb 03, 2025 9:11 am
afr wrote: Mon Feb 03, 2025 9:02 am

I did not make any non-deductible contributions in 2024(last time was in 2021 and discontinued after that). All of my prior tIRA contributions were non-deductible and an f8606 was submitted with my returns. So then am I to assume the only portion of the f8606 that I need to complete and forward with my tax return is Part II?
In that case you would have to fill out Part I.
So the f8606 I posted is correct?
rkhusky
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Re: IRS Form 8606

Post by rkhusky »

afr wrote: Mon Feb 03, 2025 9:13 am
rkhusky wrote: Mon Feb 03, 2025 9:11 am
In that case you would have to fill out Part I.
So the f8606 I posted is correct?
I’m not sure. From the instructions for Part I, it appears that you might not have to fill it out because you didn’t make a nondeductible contribution in 2024 and you rolled over and converted the whole tIRA.
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retiredjg
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Re: IRS Form 8606 completed correctly?

Post by retiredjg »

Look at the instructions for Part I on the form itself. It seems that none of the 3 bullet points apply to you. In that case, Part I is not needed and only Part II needs to be filled out.

In reality, it will not matter in the end. In general, nobody ever looks at these forms. The form is only used (in this case) to generate the number on line 18 which is then transferred to your 1040. It appears to me that Part II is correct from what you have told us.
rkhusky
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Re: IRS Form 8606 completed correctly?

Post by rkhusky »

Just to clarify, you had $184,614.08 in the tIRA with $80,000 nondeductible contributions?
Topic Author
afr
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Re: IRS Form 8606 completed correctly?

Post by afr »

retiredjg wrote: Mon Feb 03, 2025 9:24 am Look at the instructions for Part I on the form itself. It seems that none of the 3 bullet points apply to you. In that case, Part I is not needed and only Part II needs to be filled out.

In reality, it will not matter in the end. In general, nobody ever looks at these forms. The form is only used (in this case) to generate the number on line 18 which is then transferred to your 1040. It appears to me that Part II is correct from what you have told us.
Thank you for your reply
Topic Author
afr
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Re: IRS Form 8606 completed correctly?

Post by afr »

rkhusky wrote: Mon Feb 03, 2025 9:32 am Just to clarify, you had $184,614.08 in the tIRA with $80,000 nondeductible contributions?
That's correct.
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Epsilon Delta
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Re: IRS Form 8606 completed correctly?

Post by Epsilon Delta »

I agree with retiredjg only part II is required.

But if you are going to fill out part I I'd also follow the instructions for lines 9, 10, and 11. You will get to the same answer on line 14, but if a person looks at the form there will be no "what the heck?" moments.
rkhusky
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Re: IRS Form 8606 completed correctly?

Post by rkhusky »

Note that the rollover amount goes on 1040 Line 4a, but not on 4b, with Rollover written to the left of 4b. 8606 Lines 16 and 18 go on 1040 Lines 4a and 4b respectively.
Last edited by rkhusky on Mon Feb 03, 2025 10:49 am, edited 1 time in total.
Topic Author
afr
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Re: IRS Form 8606 completed correctly?

Post by afr »

rkhusky wrote: Mon Feb 03, 2025 10:47 am Note that the rollover amount goes on 1040 Line 4a, but not on 4b, with Rollover written to the left of 4b.
Got it. Thanks
Navillus1968
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Re: IRS Form 8606 completed correctly?

Post by Navillus1968 »

afr wrote: Mon Feb 03, 2025 9:35 am
rkhusky wrote: Mon Feb 03, 2025 9:32 am Just to clarify, you had $184,614.08 in the tIRA with $80,000 nondeductible contributions?
That's correct.
Once you completed the rollover of the majority of pre-tax assets to your 401k, you were left with $83,555.86 in TIRA.

I think the math is correct WRT to the taxable amount of your conversion vs your basis.
Strictly speaking, after looking at Part I more closely, you would have been OK just filling out Part II, since you converted your entire TIRA & you know your basis. If you had done a partial Roth conversion, Part I is mandatory, since you would be leaving basis behind in the TIRA & Part I tells you that amount for future reference.

Not a Form 8606 expert, but I don't think the IRS needs you to "show your work," as long as they get the correct amount of taxes paid.
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afr
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Re: IRS Form 8606 completed correctly?

Post by afr »

Navillus1968 wrote: Mon Feb 03, 2025 10:51 am
afr wrote: Mon Feb 03, 2025 9:35 am

That's correct.
Once you completed the rollover of the majority of pre-tax assets to your 401k, you were left with $83,555.86 in TIRA.

I think the math is correct WRT to the taxable amount of your conversion vs your basis.
Strictly speaking, after looking at Part I more closely, you would have been OK just filling out Part II, since you converted your entire TIRA & you know your basis. If you had done a partial Roth conversion, Part I is mandatory, since you would be leaving basis behind in the TIRA & Part I tells you that amount for future reference.

Not a Form 8606 expert, but I don't think the IRS needs you to "show your work," as long as they get the correct amount of taxes paid.
Thanks. I haven’t submitted my tax returns yet.
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