[quote=ucodegen]Oh yes, a nit to pick –
[quote=SK in CV]Those cumulative non-deductible contributions are supposed to be reported on tax returns every year (on form 8606), even if no new non-deductible contributions have been made for the tax year.[/quote]
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Pick away. You’re wrong, irrespective of your limited reading of the instructions. Basis of non-deductible IRA’s, net of prior year cost recovery, is reported on line 2 of form 8606. It is practically the only proof that the IRS will accept that you’ve maintained the records. They (The form 8606) can, in fact, be filed as a stand alone form. You can file them late all the way back to 1995, though it’s conceivably possible for failure to file penalties to be assessed. I’ve never seen that penalty assessed for a late filed 8606. I have prepared dozens for clients, in order to fix their improperly prepared returns.
