To make matters worse, you will have to file an IRS Form 8606 every year in which you make a nondeductible contribution or withdraw money from an IRA to which nondeductible contributions have been made. Hang on to the 8606 forms until you completely remove the money from all of your traditional IRAs, a process that could take decades. Hey, we didn't write the rules. 19- Penalty for noncompliance. 20- IRAs and estate taxes.
Confusion abounds about the interplay of income taxes and estate taxes.
Fortunately, the ceiling on the amount of money you can pass on to your beneficiaries before these taxes kick in is rising. Institute for Econometric Research Reproduction in whole or in part without permission is prohibited. Our Privacy Policy .