Question

Q- Complete this sentence with the correct response. Form 8606 is NOT required when the taxpayer:

Makes a partially-deductible traditional IRA contribution.

Takes a qualified Roth IRA distribution.

Converts a SEP IRA to a Roth IRA.

Is over age 59½ and converts a traditional IRA to a Roth IRA

Answer 1

The form 8606 is a tax form distributed by the Internal Revenue Service (IRS) and used by filers who make nondeductible contributions to an IRA.

There are several types of IRAs, including traditional IRAs, Roth IRAs and SEP IRAs. A separate form should be filed for each tax year that nondeductible contributions are made.

Form 8606 is also required whenever: 1) a taxpayer converts a Traditional or SEP IRA into a Roth IRA or 2) receives an IRA distribution that is attributable to previous nondeductible contributions.

Hence Form 8606 is not required to be filed when there are deductible IRA contributions.

So, the complete sentence is Form 8606 is NOT required when the taxpayer Makes a partially-deductible traditional IRA contribution.