27 Feb Are Roth IRAs included in totals on tax forms?

Q. When it comes to Form 8606, the form asks for the value of all your IRAs. Does that include Roth IRAs also? I have $10,000 in non-deductible IRAs for which I’m getting a small write-off.
— Taxpayer

A. IRA recordkeeping is important for your tax future.

Here’s some background to start.

IRS Form 8606 Part I is used to figure out what portion of a taxpayer’s traditional IRA distribution is taxable if the taxpayer has made non-deductible IRA contributions to an IRA, said Michael Maye, a certified financial planner and certified public accountant with MJM Financial in Gillette.

Part II and III of Form 8606 are specifically related to Roth IRAs, he said.

Maye said Part II of the form deals with conversions to a Roth IRA during the current year while Part III of the form deals with taxable distributions from a Roth IRA.

Now to your question.

Maye said it sounds like you’re asking about Line 6 of IRS Form 8606 Part I. It asks for “….the value of all of your traditional, SEP, and Simple IRAs as of 12/31/2018.”

Based on IRS instructions, Part I line 6 is only traditional, SEP, or Simple IRAs and excludes Roth IRAs.

Instructions for Form 8606 can be found here. 

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