{"id":20645,"date":"2017-06-14T12:00:00","date_gmt":"2017-06-14T12:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2023-08-29T08:35:44","modified_gmt":"2023-08-29T13:35:44","slug":"nondeductible-ira-contributions","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/nondeductible-ira-contributions\/","title":{"rendered":"Nondeductible IRA Contributions &#8211; Form 8606"},"content":{"rendered":"<p>Form 8606 is a critical tax form to fill out if you have Individual Retirement Accounts, or IRAs. It reports and tracks the rollover eligibility of after-tax assets from these retirement plans.<\/p>\n<h2>When to File Form 8606<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-51643 alignright\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/retirement-contributions-300x200.jpg\" alt=\"retirement contributions\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/retirement-contributions-300x200.jpg 300w, https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/retirement-contributions.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>File an IRS Form 8606 for every year you contribute after-tax amounts (non-deductible IRA contribution) to your traditional IRA, and every year you receive a distribution from your IRA as long as you have after-tax amounts, including after-tax rollover amounts from traditional, SEP, or SIMPLE IRA plans.<\/p>\n<p><strong>(Extra resource:<\/strong> Get a refresher on <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/ira-terminology\/\">retirement account terms<\/a>!)<\/p>\n<h2>Use IRS Form 8606 to Deduct IRA Contributions<\/h2>\n<p>You might not be able to deduct your traditional IRA contribution. However, you can make nondeductible IRA contributions. If you make nondeductible contributions to a traditional IRA, complete Form 8606 and file it with your return.<\/p>\n<p>Form 8606 is also used to track IRA-related transactions like:<\/p>\n<ul>\n<li>Taking distributions from a Roth IRA<\/li>\n<li>Taking distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions<\/li>\n<li>Converting a traditional, SEP or SIMPLE IRA into a Roth IRA<\/li>\n<\/ul>\n<p>IRS Form 8606 helps you keep track of your basis in the account. <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/cost-basis\/\">Basis<\/a> includes the total amount of nondeductible contributions that you make. This is important since it\u2019ll keep you from paying tax on the money a second time when you withdraw it.<\/p>\n<h2>What Are Non-Deductible IRA Contribution Limits?<\/h2>\n<p>For a traditional IRA, you\u2019re allowed to contribute up to a maximum of $6,000. If you\u2019re age 50 or older, the maximum is $7,000.<\/p>\n<p>However, if you\u2019re an active participant in a company plan, your traditional IRA deduction:<\/p>\n<ul>\n<li>Begins to phase out when your modified adjusted gross income (AGI) reaches $64,000 \u2014 or $103,000 if\u00a0<a href=\"https:\/\/www.hrblock.com\/tax-center\/around-block\/offers\/tax-filing-status-guide\/\">married filing jointly<\/a> or $65,000 or $104,000 for your 2020 tax return<\/li>\n<li>Is phased out completely when your modified AGI is more than $74,000 ($75,000 for 2020)\u2014 or $123,000 or ($104,000 for 2020 returns) if married\u00a0<a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/personal-tax-planning\/how-filing-jointly-came-to-be\/\">filing jointly<\/a>. So, you can\u2019t deduct your traditional IRA contribution.<\/li>\n<\/ul>\n<p>If you\u2019re not an active participant but your spouse is, different AGI ranges apply.<\/p>\n<p>View the <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/traditional-and-roth-ira\/\">full list of rules related to IRA contributions<\/a>.<\/p>\n<h2>How To Fill Out Form 8606<\/h2>\n<p>Find a download of the <a href=\"https:\/\/www.irs.gov\/pub\/irs-prior\/f8606--2019.pdf\">IRS form 8606 from the IRS website<\/a>. Follow the steps listed on the form. Attach this form to your Form 1040.<\/p>\n<h2>Want More Help With Nondeductible Contributions?<\/h2>\n<p>If you\u2019re looking for more help with tax reporting using Form 8606 and nondeductible contributions, get the help of H&amp;R Block. <a href=\"https:\/\/www.hrblock.com\/tax-offices\/\">Drop off<\/a>, <a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">file online<\/a>, or work with a tax pro remotely\u2014it\u2019s up to you!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form 8606 is a critical tax form to fill out if you have Individual Retirement Accounts, or IRAs. It reports and tracks the rollover eligibility of after-tax assets from these retirement plans. When to File Form 8606 File an IRS Form 8606 for every year you contribute after-tax amounts (non-deductible IRA contribution) to your traditional [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":51643,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,55],"tags":[],"class_list":["post-20645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-irs","category-forms"],"acf":[],"yoast_head":"<title>Nondeductible IRA Contributions Form 8606 | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Learn more about nondeductible IRA Contributions and how to file them on Form 8606 from the tax experts at H&amp;R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/nondeductible-ira-contributions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nondeductible IRA Contributions - Form 8606\" \/>\n<meta property=\"og:description\" content=\"Learn more about nondeductible IRA Contributions and how to file them on Form 8606 from the tax experts at H&amp;R Block.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/nondeductible-ira-contributions\/\" \/>\n<meta property=\"og:site_name\" content=\"H&amp;R Block\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-14T12:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-29T13:35:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/retirement-contributions.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"334\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"H&amp;R Block\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@HRBlock\" \/>\n<meta name=\"twitter:site\" content=\"@hrblock\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"H&amp;R Block\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/forms\\\/nondeductible-ira-contributions\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/forms\\\/nondeductible-ira-contributions\\\/\"},\"author\":{\"name\":\"H&amp;R Block\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/0451551be86ad17708cdd08a71391fcf\"},\"headline\":\"Nondeductible IRA Contributions &#8211; 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