• Applicants who make non-deductible IRA contributions use IRS Form 8606.
  • Any taxpayer with a cost base greater than zero for IRA assets must use Form 8606 to apportion taxable and non-taxable distribution amounts.
  • File Form 8606 with Form 1040 or 1040NR by the due date, including renewal deadlines.
  • If taxpayers do not file Form 8606 in the distribution year, they may be required to pay income tax (and possibly penalties) on tax-free money.