Ready
Thinks s/he gets paid by the post
I have been contributing the max each year to my IRA ($5,500 up until age 50, then $6,500) for quite a few years now. The contributions have never been tax deductible because I have always exceeded the income threshold.
I was just reading that apparently I was supposed to file a form 8606 with my Federal tax returns to let the IRS know I am adding after tax contributions to an IRA, so that it won't be taxed again when I withdraw it. I've used either Turbotax or H&R Block every year and don't ever remember being asked the question about whether my IRA contribution came from pre-tax or after tax funds.
Is it too late at this point to do anything about it? I'm guessing I have about seven years worth of funds that I should have filed this form on. I don't understand how something so obvious doesn't show up with a big warning sign in the tax software programs. Am I missing something?
I was just reading that apparently I was supposed to file a form 8606 with my Federal tax returns to let the IRS know I am adding after tax contributions to an IRA, so that it won't be taxed again when I withdraw it. I've used either Turbotax or H&R Block every year and don't ever remember being asked the question about whether my IRA contribution came from pre-tax or after tax funds.
Is it too late at this point to do anything about it? I'm guessing I have about seven years worth of funds that I should have filed this form on. I don't understand how something so obvious doesn't show up with a big warning sign in the tax software programs. Am I missing something?