But when OP eventually starts taking RMDs, then the 8606 will need to be filed each year and additionally the pro-rata calculated. One thing I would like to add is that if there are additional IRAs, in addition to the account where the after tax contribution was made, then you can never eliminate the need for after tax tracking by simply closing that 1 account. If the amount is small in comparison with the total of all of your IRAs you could choose to just stop tracking it with the understanding that you will be required pay tax on that contribution the same as though it was a pre-tax contribution.Have you read the instructions for Form 8606? It is not clear to me if you have been making a nondeductible traditional IRA contribution every year or not. The reason is that if you made a one-time $2000 contribution from 23 years ago, then you would have only needed to file one Form 8606 for that tax year and not filed a Form 8606 again until you either made a another nondeductible contribution more or withdrew some money from your traditional IRA.
Here is a thread where I asked a related question and was thoroughly educated on the topic of non-deductible IRA contributions. It contains reference to an informative wiki as well.
Statistics: Posted by brockmari — Thu Feb 08, 2024 12:30 pm — Replies 2 — Views 70