|
01-30-2019, 10:57 PM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
|
Form 8606 needed?
Next question, hopefully it's the last one for this year.
Last year when the CPA did my Dad's personal taxes, they filed a Form 8606. The only entries were in part III on lines 22 and 24, which show basis in Roth IRA contributions and basis in Roth IRA conversions.
My Dad is 82 and has had his Roth IRA for more than 5 years. He took a distribution from his Roth IRA in 2018 with a distribution code of Q, which I've dutifully reported on line 4a.
He's probably not going to do any more contributions, rollovers, conversions, recharacterizations or anything like that. He may take some distributions from his Roth IRA in future years to supplement his RMDs / SS / pension, but that's about it.
I don't know of any reason to file a Form 8606 with his tax return this year. In fact, the instructions seem to imply that it shouldn't be filed. Does it need to be filed, and if so, why?
Also, I don't know of any reason to continue to track these Roth basis items. Can anyone think of any?
Thanks!
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
01-31-2019, 06:25 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
The age of your dad and the Roth IRA and the code Q mean that all distributions from the Roth are qualified so there is no need to track basis on the 8606. That Pt III is only to determine if some part of the withdrawal is taxable and those days are gone.
|
|
|
01-31-2019, 06:41 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,720
|
This seems like a good starting point for understanding Form 8606.
https://turbotax.intuit.com/tax-tips...iras/L7iVxrgTs
What you should do, I do not have a suggestion.
|
|
|
01-31-2019, 08:29 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
|
Quote:
Originally Posted by kaneohe
The age of your dad and the Roth IRA and the code Q mean that all distributions from the Roth are qualified so there is no need to track basis on the 8606. That Pt III is only to determine if some part of the withdrawal is taxable and those days are gone.
|
Thanks.
It occurred to me last night that the basis might be inheritable and possibly useful when the Roth IRA is inherited and the beneficiaries must start RMDs, but a quick Google check suggests that isn't the case.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
01-31-2019, 09:55 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
Quote:
Originally Posted by SecondCor521
Thanks.
It occurred to me last night that the basis might be inheritable and possibly useful when the Roth IRA is inherited and the beneficiaries must start RMDs, but a quick Google check suggests that isn't the case.
|
Not sure why you would need basis since the Roth is qualified already.
Pretty sure for a TIRA, the basis is inherited if you had non-deductible contributions so would be surprised if Roth were not the same if it were not yet qualified.
|
|
|
01-31-2019, 10:19 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
|
Quote:
Originally Posted by kaneohe
Not sure why you would need basis since the Roth is qualified already.
|
Right. I was agreeing with you on this point, but I was probably unclear.
Quote:
Originally Posted by kaneohe
Pretty sure for a TIRA, the basis is inherited if you had non-deductible contributions so would be surprised if Roth were not the same if it were not yet qualified.
|
Fortunately for our situation, my Dad's tIRA and Roth IRA are both qualified, and his tIRA has zero basis as far as I know.
Thanks for the replies. I've decided to not bother filing the Form 8606 or track the basis any more.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|