Technically, you should amend those prior returns to apply your IRA basis and get a refund.I made non-deductible contributions to an IRA in years 2005 through 2013. Form 8606 was included in each year.
In years 2018 through 2022 I made Roth conversions from the IRA account. When I filed my taxes (using TurboTax) Form 8606 was included along with the updated non-deductible basis reflecting the reduced basis for each year.
In years 2023 and 2024 I took distributions from the IRA (not Roth Conversions). I just realized I did NOT file Form 8606 for those two years. I believe my mistake in TurboTax was misreading the following prompt: Did you have any nondeductible IRA contributions to your traditional IRA from [tax year] or prior years? (I probably thought TurboTax was asking about the current tax year AND forgot about the non-deductible contributions of previous years.)
The non-deductible basis at the end of 2022 was $12,084. That was the amount on Form 8606 filed for tax year 2022.
In December 2025, the IRA had a balance of $56,625. I took a $50,000 distribution.
(I have a 401K that I have not yet rolled over into that IRA -- not sure if relevant info or not.)
How do I correct this situation?
When I select YES to the TurboTax prompt for the 2025 tax return, I am taken to a page that asks:
If you made any nondeductible contributions in prior years, look at your most recent Form 8606. Find the box called total basis and enter the number from that box below.
If you never filed a Form 8606 just enter 0 (zero).
What was your total basis as of December 31, 2024?
If I enter the December 31, 2022 basis ($12,084) as the December 31, 2024 basis, will TurboTax simply pick up where I left off and apply a portion of the $12,084 non-deductible basis to the $50,000 distribution based on the $56,625 balance?
Or will I have to do something more sinister like correct my 2023 and 2024 tax returns?
Obviously, I don't want to pay taxes on the basis again. And yes, I'm kicking myself for not paying closer attention when filing for 2023 and 2024 tax years.
The IRS does not pay any attention to Form 8606 basis amounts, so I would just use the remaining basis to apply to future distributions. The IRS will be satisfied because they collected tax on more pre tax IRA amounts sooner.
Statistics: Posted by Alan S. — Fri Feb 13, 2026 3:22 pm — Replies 1 — Views 72