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Retirement learning center · reviewed October 10, 2026

Form 8606 explained

Form 8606 is the IRS form associated with nondeductible IRA contributions and certain IRA distributions and conversions. Use the version for the relevant tax year.

2025 standard rules · 2026 form projections

1. Collect and reconcile source documents

Mark a document ready after you have checked it. For an item that does not apply, confirm why and mark it reviewed.

Required when prior basis exists; reconcile the carryforward.

Reconcile conversions and other distributions.

Form 5498 may arrive later; preserve tax-year contribution confirmations.

Gather all applicable personal accounts across custodians.

Relevant when money was transferred to or from another plan.

Verify compensation, annual limits and other IRA contributions.

0 of 6 categories reviewed.

Missing or unreviewed documents

  • Prior Forms 8606 and basis history
  • Forms 1099-R / distribution transaction records
  • Forms 5498 / contribution confirmations
  • December 31 traditional, SEP and SIMPLE IRA statements
  • Rollover confirmations and administrator acceptance
  • Income, age and contribution eligibility records

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2. Reconcile basis and preview form lines

Use prior filed Form 8606 line 14, then verify contribution designations and all relevant IRA transactions. This preparation worksheet does not submit an IRS form. For 2026, the preview uses the 2025 form structure as an estimate.

Open basis reconciliation tracker
  1. 1. Enter IRA details
  2. 2. Review tax exposure
  3. 3. Explore and export

Your IRA & conversion inputs

One IRA owner per calculation. All amounts are USD. Initial values are a sample; replace them with your records.

?Total net traditional IRA-to-Roth conversions in this calendar year; conversions have no annual contribution limit.
?Entire value of your own traditional and rollover IRAs, including basis. SEP/SIMPLE values go below.
?Reconcile prior Form 8606 line 14. Do not count the same contribution here and below.
?Regular IRA limit: $7,500 / $8,600 at age 50+; shared with regular Roth contributions and subject to taxable compensation.
?Traditional SEP IRA value; employer contributions are not regular nondeductible contributions.
?Traditional SIMPLE IRA value. Transactions within its first two years need review.
?Portion of current-year contributions made the following year. Excluded from this year's allocation basis on line 5.
Explore a different year-end balance

Additional transactions and tax assumptions

?Eligible non-conversion IRA distributions. Exclude rolled-over amounts and flag special transactions below.
?Qualifying outstanding rollovers included on line 6. Do not double count year-end assets.
?Used only for the contribution guardrail; verify spousal contribution eligibility separately.
?Regular Roth/deductible traditional contributions using the same annual contribution limit.
Multiple Roth conversions

Adding rows replaces the total conversion amount above with their sum.

Special transactions requiring review

Select any that apply. Results are withheld because these require additional IRS worksheets or information.

User-supplied assumption; state and local taxes excluded.
Step 2 · explainable allocation

Your conversion breakdown

2026 estimate using the 2025 Form 8606 structure. Final 2026 form instructions have not been verified.

Taxable conversion
$5,250.00
Tax-free conversion
$1,750.00
Remaining basis
$5,250.00
Estimated incremental federal tax
$1,260.00
Total relevant basis
$7,000.00
Year-end applicable IRA value
$21,000.00
Other taxable distributions
$0.00
Total distributions and conversions
$7,000.00

This is a planning estimate, not a complete tax return. Credits, deductions, capital gains stacking, NIIT, Medicare IRMAA, Social Security taxation, state/local taxes and early distribution penalties are excluded. Spouses calculate separately.

  • 2026 Form 8606 projection uses the finalized 2025 structure; final 2026 instructions were not verified.

Saving is optional. It stores financial values locally, unencrypted, and lets related tools reuse them. Reset clears your saved scenario.

Step 3 · explore your options

Compare conversion and reverse rollover strategies →Plan conversions over multiple years →Check your tax documents →
Preparation worksheet · 2026

Form 8606 line-by-line preview

Official 2025 form

Standard Part I/II allocation only. No IRS approval or filing submission is implied. No-distribution years skip allocation lines on the actual form; basis is retained. Reconcile with Forms 1099-R, 5498 and prior Forms 8606.

Supported Form 8606 calculations (provisional structure)
LineMeaning / calculationAmount
1Current-year nondeductible contributions$0.00
2Prior-year basis$7,000.00
3Combined basis$7,000.00
4Contributions made after December 31$0.00
5Basis available for allocation$7,000.00
6December 31 IRA values + outstanding rollovers$21,000.00
7Other eligible IRA distributions$0.00
8Net Roth conversions$7,000.00
9Allocation denominator (6 + 7 + 8)$28,000.00
10Nontaxable ratio (5 ÷ 9, capped at 1)0.250000000000000000
11Nontaxable conversion (8 × 10)$1,750.00
12Nontaxable other distributions (7 × 10)$0.00
13Total basis used (11 + 12)$1,750.00
14Remaining basis (3 − 13)$5,250.00
15aOther taxable distributions (7 − 12)$0.00
15bQualified disaster amount (unsupported)$0.00
15cOther taxable distributions, standard case$0.00
16Conversions$7,000.00
17Nontaxable conversions$1,750.00
18Taxable conversion (16 − 17)$5,250.00

IRS Form 8606 instructions · Calculation assumptions · Supported and review-only scenarios

3. Review with your preparer

Compare the worksheet with Forms 1099-R, 5498 and IRA statements. Resolve missing records and special situations before filing. Download the calculator report or print this page for your preparer.

Reviewed October 10, 2026. IRS reference. 2026 Form 8606 output is a planning estimate based on the 2025 structure.

Read the worksheet with your records

Compare the tool's line labels with the official form. Resolve any unfamiliar distribution or adjustment before relying on a result.

  • Prior basis: reconcile your historical records.
  • Contribution timing: distinguish the designated tax year from the payment date.
  • Year-end value: gather every relevant custodian statement.
  • Conversion: reconcile the annual transaction total.

Filing requires more than a simulation

The downloadable worksheet is a planning aid. It omits identifying information and cannot be submitted as an official tax return. Missing historical forms need case-specific review; do not assume one mailing procedure fits every situation.

Sources and next steps

Reviewed October 10, 2026. This independent educational website is not affiliated with the IRS. Special transactions need professional review.

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