form 8606 for a Roth IRA?

Factual Questions
1

I’m confused
My wife and I contribute to a Roth IRA (maximum), do I need to fill out a Form 8606?

My accountant neighbor says I should, but he may think I have a traditional IRA. He claims I will be stung for taxes when I try to withdraw from the IRA when I retire unless I’ve tracked my contributions with form 8606.

I don’t think I’ve seen such a thing on TurboTax, and I’m not convinced I have to do it for a ROTH IRA.

Help? advice? confused:confused:

2

All that I can think of is that your neighbor is confusing making a contribution to a Roth IRA with making a non-deductible contribution to a traditional IRA. If you make a non-deductible contribution to a traditional IRA, then, yes, you will have trouble when it comes to take it out.

Form 8606 is for contributions to non-deductible traditional IRAs and for a variety of distributions and transfers. Not for contributions to Roth IRAs. Have a look at the form and see for yourself.

Having said that, you should keep track of your contributions on your own. Save the Form 5498 that your financial institution sends you in May each year. If you have to make an early withdrawal or prove that your Roth IRA has been open for 5 years, they will come in handy.