Form 8606 is the form used for:
- 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, Simplified Employee Pension Plan (SEP), or Savings Incentive Match PLan for Employees (SIMPLE IRAs) to Roth IRAs; and
Distributions from Roth IRAs
You’ll use form 8606 if all of the following apply:
- You made nondeductible contributions to a traditional IRA for 2017, including a repayment of a qualified reservist distribution.
- You received distributions from a traditional, SEP, or SIMPLE IRA in 2017 and your basis in traditional IRAs is more than zero. For this purpose, a distribution doesn’t include a rollover, qualified charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.
- You converted an amount from a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2017 (unless you recharacterized the entire conversion)
You received distributions from a Roth IRA in 2017 (other than a rollover, recharacterization, or return of certain contributions).
- You received a distribution from an inherited traditional IRA that has basis, you transferred an inherited plan account to a Roth IRA, or you received a distribution from an inherited Roth IRA that wasn’t a qualified distribution.
You may need to file more than one Form 8606.