IRS Updates 2018 Instructions for Form 8606—Nondeductible IRAs

The IRS has updated the 2018 instructions for Form 8606—Nondeductible IRAs.

The IRS updated the Form 8606 to reflect tax relief for qualified 2018 disaster distributions.
 

The IRS notes that recent legislation provides special rules that may apply to a 2018 return if one received a distribution from an IRA or other retirement plan and suffered an economic loss as a result of a major disaster that occurred in 2018.
 

The qualified disaster distributions to which this applies are enumerated in the instructions for the 2018 Form 8915-C, Qualified 2018 Disaster Retirement Plan Distributions and Repayments.

Special rules may also apply to a 2018 return if one received a distribution to purchase or construct a main home in a 2018 disaster area, but that home was not purchased or constructed because of the 2018 disaster.

The Form 8606 is used to report:
 

• nondeductible contributions made to traditional IRAs;
• distributions from traditional, SEP or SIMPLE IRAs, if one has a basis in such IRAs;
• conversions from traditional, SEP or SIMPLE IRAs to Roth IRAs; and
• distributions from Roth IRAs.