{"id":9833,"date":"2017-09-13T08:00:57","date_gmt":"2017-09-13T13:00:57","guid":{"rendered":"http:\/\/taxprocenter.proconnect.intuit.com\/?p=9833"},"modified":"2019-07-30T11:39:16","modified_gmt":"2019-07-30T16:39:16","slug":"nondeductible-ira-contributions-and-completing-form-8606","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/","title":{"rendered":"Nondeductible IRA Contributions and Completing Form 8606"},"content":{"rendered":"

Increasingly, individuals bear more of the responsibility for accumulating the resources needed for consumption in retirement. As employer-sponsored defined benefit plans decline in popularity, a greater emphasis is placed on employees to save at levels that are sufficient enough to maintain an optimal lifestyle in retirement.<\/p>\n

To ensure a comfortable retirement, individuals may need to contribute sums over and above the contribution limits stated for their employer-sponsored defined contribution plans. When considering the ideal location for these additional retirement savings, people sensibly choose to take advantage of all the tax-sheltered accounts available before saving and investing assets in taxable accounts. Even though it does not allow a current year income tax deduction, a nondeductible IRA contribution proves valuable because the contributed funds benefit from growth without the friction of an annual tax drag. Over time, the benefit of tax-deferred compounding growth becomes a dominant force for accumulating a respectable retirement nest egg.<\/p>\n

Given this confluence of events, tax practitioners need to be diligent and ascertain whether clients are making any nondeductible IRA contributions for two reasons. First, it\u2019s always important to remind clients to give some thought surrounding their retirement plan. Second, it\u2019s imperative to make sure any nondeductible IRA contributions are tracked and reported.<\/p>\n

Often, clients assume that since a nondeductible IRA contribution does not affect their taxes at the time of contribution, they do not need to report or mention it. However, tax practitioners understand that this view is faulty. In an employer-sponsored qualified retirement plan, the plan administrator or custodian is responsible for keeping track of pre- and after-tax amounts. However, that is not the case with an IRA; the responsibility for tracking the tax basis falls exclusively on the account owner. Failing to keep good records may result in double taxation when the funds are ultimately withdrawn.<\/p>\n

The commonly overlooked IRS Form 8606<\/a>, Nondeductible IRAs<\/em>, is filed with the individual\u2019s tax return and functions to track after-tax contributions made to traditional IRAs. Nondeductible IRA contributions need to be reported each year on Part I of Form 8606. Tax practitioners should advise clients that filing this form will save additional tax dollars and reduce complexities when funds are eventually distributed from the IRA account during retirement.<\/p>\n

The taxation of an IRA distribution depends on whether the original contributions to the IRA account were made with pre- or after-tax dollars. When nondeductible contributions are made, a tax basis is created in the account since the dollars contributed have already been taxed. Once an IRA contains after-tax funds, a portion of any withdrawal is excluded from taxable income. For this important calculation to be accurate, the taxpayer needs to exercise diligence in reporting and tracking nondeductible contributions on Form 8606.<\/p>\n

The nontaxable portion of an IRA distribution is determined by the “pro-rata” rule. The calculation, computed on Form 8606, compares the cumulative nondeductible contributions to the balance of all IRA accounts in an individual\u2019s name. For example, let\u2019s say a client made $50,000 of nondeductible contributions to an IRA that has a current value of $100,000. Assume this individual also has a second IRA with only pre-tax contributions and a current market value of $25,000. If the individual takes a $10,000 distribution, 40 percent of that distribution represents a recovery of basis ($50,000\/$125,000 = 40 percent) and is excluded from taxable income. Therefore, the $10,000 withdrawal will result in just $6,000 of taxable income because $4,000 ($10,000 X 40 percent) is excluded.<\/p>\n

As a tax practitioner serving clients in the retirement accumulation phase of the lifecycle, it is crucial to inquire about any nondeductible IRA contributions. Since retirement distributions may not occur until decades into the future, it is quite easy to lose track of the after-tax amounts. Be sure to help your clients keep immaculate records! The account beneficiaries will also be able to exclude the basis portion of taxable income upon inheritance. A little diligence, while ensuring the proper forms are filed and retained, will save your clients from overpaying their tax liability on distributions in retirement.<\/p>\n

LEGAL,<\/strong>\u00a0INVESTMENT<\/strong>\u00a0AND<\/strong>\u00a0TAX<\/strong>\u00a0NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel.<\/strong><\/h5>\n
OTHER IMPORTANT INFORMATION<\/strong>:\u00a0Opinions expressed and information contained herein are current only as of the date appearing in this material and are subject to change without notice.<\/strong><\/h5>\n","protected":false},"excerpt":{"rendered":"

Hear from Robert Westley, CPA\/PFS, CFP, about nondeductible IRA contributions and completing Form 8606 to help you better serve clients in the retirement accumulation phase of the lifecycle.<\/p>\n","protected":false},"author":113474730,"featured_media":10663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rkv_browse_by_id":0,"rkv_cta_id":0,"rkv_optimize_for_pagespeed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"useModifiedDate":false,"customPublishDate":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[509474089],"tags":[7649],"intuit_collection":[],"intuit_series":[],"coauthors":[509474252],"class_list":["post-9833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-law-and-news","tag-irs"],"header_image":"","yoast_head":"\nNondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit\" \/>\n<meta property=\"og:description\" content=\"Hear from Robert Westley, CPA\/PFS, CFP, about nondeductible IRA contributions and completing Form 8606 to help you better serve clients in the retirement accumulation phase of the lifecycle.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/\" \/>\n<meta property=\"og:site_name\" content=\"Tax Pro Center | Intuit\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/IntuitAccountants\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-13T13:00:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-30T16:39:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"655\" \/>\n\t<meta property=\"og:image:height\" content=\"363\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Robert Westley, CPA\/PFS, CFP\u00ae\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@IntuitAccts\" \/>\n<meta name=\"twitter:site\" content=\"@IntuitAccts\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Westley, CPA\/PFS, CFP\u00ae\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/\"},\"author\":{\"name\":\"Robert Westley, CPA\\\/PFS, CFP\u00ae\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/person\\\/2c758caeecb07beaf6c6603f8dc4ec8d\"},\"headline\":\"Nondeductible IRA Contributions and Completing Form 8606\",\"datePublished\":\"2017-09-13T13:00:57+00:00\",\"dateModified\":\"2019-07-30T16:39:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/\"},\"wordCount\":746,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/10\\\/couple-with-tax-accountant-e1535552596416.jpg\",\"keywords\":[\"IRS News\"],\"articleSection\":[\"Tax Law and News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/\",\"name\":\"Nondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/10\\\/couple-with-tax-accountant-e1535552596416.jpg\",\"datePublished\":\"2017-09-13T13:00:57+00:00\",\"dateModified\":\"2019-07-30T16:39:16+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#primaryimage\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/10\\\/couple-with-tax-accountant-e1535552596416.jpg\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/10\\\/couple-with-tax-accountant-e1535552596416.jpg\",\"width\":655,\"height\":363,\"caption\":\"Mature couple sitting at table with financial advisor\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/nondeductible-ira-contributions-and-completing-form-8606\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Nondeductible IRA Contributions and Completing Form 8606\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#website\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\",\"name\":\"Tax Pro Center | Intuit\",\"description\":\"Tax Pro Center\",\"publisher\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\",\"name\":\"Tax Pro Center | Intuit\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/Tax_Pro_Center_Logo_Final_large.webp\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/Tax_Pro_Center_Logo_Final_large.webp\",\"width\":872,\"height\":160,\"caption\":\"Tax Pro Center | Intuit\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/IntuitAccountants\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/IntuitAccts\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/intuitaccountants\\\/?hl=en\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/company\\\/intuit-accountants\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/person\\\/2c758caeecb07beaf6c6603f8dc4ec8d\",\"name\":\"Robert Westley, CPA\\\/PFS, CFP\u00ae\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g\",\"caption\":\"Robert Westley, CPA\\\/PFS, CFP\u00ae\"},\"description\":\"Robert is a second vice president and financial planner at The Northern Trust Company in New York City. He specializes in the development, implementation and oversight of financial, estate and tax plans for high-net-worth individuals, senior executives and Manhattan\u2019s most affluent families. Robert is an active member of the AICPA and the New York State Society of CPAs, and currently serves on the AICPA\u2019s Personal Financial Specialist Credential Committee.\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/author\\\/robertwestleytax\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Nondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/","og_locale":"en_US","og_type":"article","og_title":"Nondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit","og_description":"Hear from Robert Westley, CPA\/PFS, CFP, about nondeductible IRA contributions and completing Form 8606 to help you better serve clients in the retirement accumulation phase of the lifecycle.","og_url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/","og_site_name":"Tax Pro Center | Intuit","article_publisher":"https:\/\/www.facebook.com\/IntuitAccountants","article_published_time":"2017-09-13T13:00:57+00:00","article_modified_time":"2019-07-30T16:39:16+00:00","og_image":[{"width":655,"height":363,"url":"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","type":"image\/jpeg"}],"author":"Robert Westley, CPA\/PFS, CFP\u00ae","twitter_card":"summary_large_image","twitter_creator":"@IntuitAccts","twitter_site":"@IntuitAccts","twitter_misc":{"Written by":"Robert Westley, CPA\/PFS, CFP\u00ae","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#article","isPartOf":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/"},"author":{"name":"Robert Westley, CPA\/PFS, CFP\u00ae","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/person\/2c758caeecb07beaf6c6603f8dc4ec8d"},"headline":"Nondeductible IRA Contributions and Completing Form 8606","datePublished":"2017-09-13T13:00:57+00:00","dateModified":"2019-07-30T16:39:16+00:00","mainEntityOfPage":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/"},"wordCount":746,"commentCount":0,"publisher":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#primaryimage"},"thumbnailUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","keywords":["IRS News"],"articleSection":["Tax Law and News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/","url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/","name":"Nondeductible IRA Contributions and Completing Form 8606 - Tax Pro Center | Intuit","isPartOf":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#website"},"primaryImageOfPage":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#primaryimage"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#primaryimage"},"thumbnailUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","datePublished":"2017-09-13T13:00:57+00:00","dateModified":"2019-07-30T16:39:16+00:00","breadcrumb":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#primaryimage","url":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","width":655,"height":363,"caption":"Mature couple sitting at table with financial advisor"},{"@type":"BreadcrumbList","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/nondeductible-ira-contributions-and-completing-form-8606\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/accountants.intuit.com\/taxprocenter\/"},{"@type":"ListItem","position":2,"name":"Nondeductible IRA Contributions and Completing Form 8606"}]},{"@type":"WebSite","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#website","url":"https:\/\/accountants.intuit.com\/taxprocenter\/","name":"Tax Pro Center | Intuit","description":"Tax Pro Center","publisher":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/accountants.intuit.com\/taxprocenter\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization","name":"Tax Pro Center | Intuit","url":"https:\/\/accountants.intuit.com\/taxprocenter\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/logo\/image\/","url":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2022\/10\/Tax_Pro_Center_Logo_Final_large.webp","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2022\/10\/Tax_Pro_Center_Logo_Final_large.webp","width":872,"height":160,"caption":"Tax Pro Center | Intuit"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/accountants.intuit.com\/taxprocenter\/IntuitAccountants","https:\/\/accountants.intuit.com\/taxprocenter\/IntuitAccts","https:\/\/accountants.intuit.com\/taxprocenter\/intuitaccountants\/?hl=en","https:\/\/accountants.intuit.com\/taxprocenter\/company\/intuit-accountants\/"]},{"@type":"Person","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/person\/2c758caeecb07beaf6c6603f8dc4ec8d","name":"Robert Westley, CPA\/PFS, CFP\u00ae","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g","url":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/6925ea5bfef5e99a536230001ab0f1d83a4db06ad3159c1bb180cb5d7dd7be37?s=96&d=identicon&r=g","caption":"Robert Westley, CPA\/PFS, CFP\u00ae"},"description":"Robert is a second vice president and financial planner at The Northern Trust Company in New York City. He specializes in the development, implementation and oversight of financial, estate and tax plans for high-net-worth individuals, senior executives and Manhattan\u2019s most affluent families. Robert is an active member of the AICPA and the New York State Society of CPAs, and currently serves on the AICPA\u2019s Personal Financial Specialist Credential Committee.","url":"https:\/\/accountants.intuit.com\/taxprocenter\/author\/robertwestleytax\/"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg","jetpack_shortlink":"https:\/\/wp.me\/pazjGh-2yB","jetpack-related-posts":[{"id":16724,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/avoid-future-taxes-by-filing-form-8606-for-nondeductible-ira-contributions\/","url_meta":{"origin":9833,"position":0},"title":"Avoid Future Taxes by Filing Form 8606 for Nondeductible IRA Contributions","author":"Liz Farr, CPA","date":"July 30, 2019","format":false,"excerpt":"Help your tax clients properly report their IRA contributions on IRS Form 8606 to avoid future taxes.","rel":"","context":"In "Tax Law and News"","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"talk about money","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/12\/money-conversation-e1535552434150.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/12\/money-conversation-e1535552434150.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/12\/money-conversation-e1535552434150.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":28502,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/retirement-plans-for-businesses\/","url_meta":{"origin":9833,"position":1},"title":"Retirement plans for businesses","author":"Intuit Accountants Team","date":"April 26, 2023","format":false,"excerpt":"Be your clients' trusted advisor and help them with business retirement plans. In this article, find out more about plan options.","rel":"","context":"In "Tax Law and News"","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"Retirement plans","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":22661,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/practice-management\/roth-ira-and-roth-401k-planning-strategies\/","url_meta":{"origin":9833,"position":2},"title":"Roth IRA and Roth 401(K) planning strategies","author":"Jim Buffington, CPA","date":"March 23, 2021","format":false,"excerpt":"Explore the advantages of tax-free Roth plan strategies, and how to incorporate them as part of wealth management.","rel":"","context":"In "Practice Management"","block_context":{"text":"Practice Management","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/practice-management\/"},"img":{"alt_text":"Roth IRA","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/03\/Roth-IRA.jpeg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/03\/Roth-IRA.jpeg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/03\/Roth-IRA.jpeg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/03\/Roth-IRA.jpeg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":11399,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/retirement-planning-for-a-small-business-doesnt-have-to-be-complicated-or-expensive\/","url_meta":{"origin":9833,"position":3},"title":"Retirement Planning for a Small Business Doesn\u2019t Have to Be Complicated or Expensive","author":"Mike D'Avolio, CPA, JD","date":"January 9, 2018","format":false,"excerpt":"Information for tax professionals to send to small business and self-employed clients to help them understand the retirement plan options available to them.","rel":"","context":"In "Tax Law and News"","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"Couple With Financial Advisor","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/10\/couple-with-tax-accountant-e1535552596416.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":24510,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/irs-announces-changes-to-retirement-plans-for-2022\/","url_meta":{"origin":9833,"position":4},"title":"IRS announces changes to retirement plans for 2022","author":"Intuit Accountants Team","date":"December 22, 2021","format":false,"excerpt":"Get an updated list of retirement contribution limits for 2022.","rel":"","context":"In "Tax Law and News"","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"Retirement Savings","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/11\/Retirement-Savings.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/11\/Retirement-Savings.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/11\/Retirement-Savings.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2021\/11\/Retirement-Savings.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":18720,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/new-secure-act-expands-retirement-savings-opportunities\/","url_meta":{"origin":9833,"position":5},"title":"New SECURE Act Expands Retirement Savings Opportunities","author":"Mike D'Avolio, CPA, JD","date":"February 27, 2020","format":false,"excerpt":"Get a comprehensive summary of the SECURE Act from Mike D'Avolio, CPA, JD.","rel":"","context":"In "Tax Law and News"","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"Tax Savings for Retirement","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2020\/02\/Retirement.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/9833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/users\/113474730"}],"replies":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/comments?post=9833"}],"version-history":[{"count":8,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/9833\/revisions"}],"predecessor-version":[{"id":17056,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/9833\/revisions\/17056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/media\/10663"}],"wp:attachment":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/media?parent=9833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/categories?post=9833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/tags?post=9833"},{"taxonomy":"intuit_collection","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/intuit_collection?post=9833"},{"taxonomy":"intuit_series","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/intuit_series?post=9833"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/coauthors?post=9833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}