A tax form distributed by the Internal Revenue Service (IRS) and used by filers who make nondeductible contributions to an IRA. Another form needs to be submitted for every tax year that nondeductible contributions are created. Form 8606 is additionally needed whenever: 1) a citizen converts a Traditional or SEP IRA into a Roth IRA, or 2) receives an IRA distribution which is attributable to preceding nondeductible contributions. If 8606 isn"t filed in a distribution year, the citizen will probably be made to cover income taxes (and perhaps fees) on what could be tax free cash.