Form 8606: Nondeductible IRAs and Roth Conversions

“Use Form 8606 to report:
Nondeductible contributions you made to traditional IRAs.
Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs.
Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
Distributions from Roth IRAs.”

“Use Form 8606 to report:
Nondeductible contributions you made to traditional IRAs;
Distributions from traditional IRAs, if you have a basis in these IRAs;
Conversions from traditional IRAs to Roth IRAs; and
Distributions from Roth IRAs.”

“If you received distributions from a traditional IRA in 2025 and you have never made nondeductible contributions (including nontaxable amounts you rolled over from a qualified retirement plan) to these IRAs, don’t report the distributions on 2025 Form 8606.”

“File 2025 Form 8606 if any of the following apply.
You made nondeductible contributions to a traditional IRA for 2025. Nondeductible contributions to a traditional IRA do not include employer contributions (including contributions made pursuant to a salary reduction arrangement) made to a SEP IRA under a SEP arrangement or to a SIMPLE IRA under a SIMPLE IRA plan.
You received distributions from a traditional IRA in 2025; your basis in these IRAs is more than zero; and you made a repayment to an IRA of a qualified reservist distribution or a repayment of “any 2025 retirement plan distributions whose repayments are treated as rollovers” (see Definitions, later). However, you do not need to file 2025 Form 8606 if your only distributions made in 2025 were qualified birth or adoption distributions, emergency personal expense distributions, domestic abuse distributions, and/or terminal illness distributions, and you repaid them in full in 2025.
You received distributions from a traditional IRA in 2025 and your basis in these IRAs is more than zero. For this purpose, a distribution doesn’t include a distribution that is rolled over (other than a repayment of certain 2025 retirement plan distribution repayments treated as rollovers (see Special Terms under Definitions, later)), qualified charitable distribution, one-time distribution to
[…]
fund an HSA, conversion, recharacterization, or return of certain contributions.
You or your spouse transferred all or part of their traditional IRA in 2025 to the other spouse under a divorce or separation agreement where the transfer resulted in a change in the basis of the IRA of either spouse.
You converted an amount from a traditional IRA to a Roth IRA in 2025.
You received distributions from a Roth IRA in 2025 (other than a rollover, recharacterization, or return of certain contributions—see the instructions for Part III, later).
You received a distribution from an inherited traditional IRA that has a basis, or you received a distribution from an inherited Roth IRA that wasn’t a qualified distribution. You may need to file more than one Form 8606. See IRA with basis under What if You Inherit an IRA? in Pub. 590-B for more information.”

“You don’t have to file Form 8606 solely to report regular contributions to Roth IRAs. But see What Records Must I Keep, later.”

“Complete this part only if one or more of the following apply.
You made nondeductible contributions to a traditional IRA for 2025. Nondeductible contributions to a traditional IRA do not include employer contributions made to a SEP IRA pursuant to a SEP arrangement or to a SIMPLE IRA pursuant to a SIMPLE IRA plan.
You took distributions from a traditional IRA in 2025 and you made nondeductible contributions to a traditional IRA in 2025 or an earlier year. For this purpose, “distributions” does not include rollovers (but does include certain 2025 retirement plan distribution repayments treated as rollovers (see instructions)). Also, it does not include qualified charitable distributions, one-time distributions to fund an HSA, conversions, recharacterizations, or returns of certain contributions.
You converted part, but not all, of your traditional IRAs to Roth IRAs in 2025 and you made nondeductible contributions to a traditional IRA in 2025 or an earlier year.”

“If you didn’t have any deductible contributions, you can make nondeductible contributions up to your contribution limit (see Overall Contribution Limit for Traditional and Roth IRAs, earlier). Enter on line 1 of Form 8606 your nondeductible contributions.”

“Generally, if this is the first year you are required to file Form 8606, enter -0-. Otherwise, use the Total Basis Chart to find the amount to enter on line 2.”

“Enter the total value of all your traditional IRAs as of December 31, 2025, plus any outstanding rollovers. A statement should be sent to you by January 31, 2026, showing the value of each IRA on December 31, 2025.”

“Complete Part II if you converted part or all of your traditional IRAs to a Roth IRA in 2025.”

“If your entry on line 18 is zero or less, don’t include the result on 2025 Form 1040, 1040-SR, or 1040-NR, line 4b. Include the full amount of the distribution on 2025 Form 1040, 1040-SR, or 1040-NR, line 4a.”

“Complete Part III to figure the taxable part, if any, of your 2025 Roth IRA distributions.”

“If, after considering the items above, you don’t have an amount to enter on line 19, don’t complete Part III; your Roth IRA distribution(s) isn’t taxable. Instead, include your total Roth IRA distribution(s) on 2025 Form 1040, 1040-SR, or 1040-NR, line 4a.”

“Penalty for Not Filing
If you are required to file Form 8606 to report a nondeductible contribution to a traditional IRA for 2025 but don’t do so, you must pay a $50 penalty, unless you can show reasonable cause.
Overstatement Penalty
If you overstate your nondeductible contributions, you must pay a $100 penalty, unless you can show reasonable cause.”

“File 2025 Form 8606 with your 2025 Form 1040, 1040-SR, or 1040-NR by the due date, including extensions, of your return.
If you aren’t required to file an income tax return but are required to file 2025 Form 8606, sign 2025 Form 8606 and send it to the IRS at the same time and place you would otherwise file 2025 Form 1040, 1040-SR, or 1040-NR. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form.”

“Due date for contributions. The due date for making contributions for 2025 to your IRA for most people is Wednesday, April 15, 2026.”

“To verify the nontaxable part of distributions from your IRAs, including Roth IRAs, keep a copy of the following forms and records until all distributions are made.
Page 1 of Forms 1040 or 1040-SR (or Forms 1040A, 1040-NR, or 1040-T) filed for each year you made a nondeductible contribution to a traditional IRA.
Forms 8606 and any supporting statements, attachments, and worksheets for all applicable years.
Forms 5498, IRA Contribution Information, or similar statements you received each year showing contributions you made to a traditional IRA or Roth IRA.
Forms 5498 or similar statements you received showing the value of your traditional IRAs for each year you received a distribution.
Forms 1099-R or W-2P you received for each year you received a distribution.”

“Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.”

“Trump accounts. For purposes of these instructions, traditional IRAs do not include Trump accounts, a type of traditional IRA introduced in PL-119-21, the One Big Beautiful Bill Act.”