Non-Deductible IRAs Unlike a traditional IRA, which is tax-deductible, non-deductible IRA contributions are made with after-tax dollars and provide no immediate tax benefit. In a given tax year, as long as you or your spouse have enough earned or self-employment income, you can each contribute to an IRA.

Is there a penalty for filing form 8606 late?

There can be a penalty of $50 for not filing Form 8606 on a timely basis, but the penalty can be waived if you can show reasonable cause for not filing. File these delinquent forms separately from your tax return.

How to file Form 8606, nondeductible IRAS?

Information about Form 8606, Nondeductible IRAs, including recent updates, related forms, and instructions on how to file. Form 8606 is used to report certain contributions and distributions to/from specific types of IRAs. Use Form 8606 to report: About Form 8606, Nondeductible IRAs | Internal Revenue Service Skip to main content

What do you need to know about form 8606?

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.

What is the penalty for not filing Form 8606?

Either way, the statement must be submitted along with the tax return. An individual who fails to file Form 8606 to report a non-deductible contribution will owe the IRS a $50 penalty. Additionally, if the non-deductible contribution amount is overstated on the form, a penalty of $100 will apply.

Do you have to file IRS Form 8606 for both spouses?

If both you and your spouse are required to file Form 8606, file a separate Form 8606 for each of you. If you are required to file Form 8606 for IRAs inherited from more than one decedent, file a separate Form 8606 for the IRA from each decedent.