Is it okay to leave sections blank on Form 8606 Part 1 and 2 when only making Roth IRA contribution withdrawals?

Yes, you can leave Parts 1 and 2 blank on Form 8606 if you're only withdrawing contributions from a Roth IRA. Parts 1 and 2 deal with nondeductible contributions to Traditional IRAs and conversions to Roth IRAs, which aren't relevant to your situation. For Roth IRA distribution of contributions only, you need to complete Part 3 of Form 8606. Since you're withdrawing only contributions and no earnings, this distribution is generally not taxable. Make sure you have documentation to substantiate that you're only withdrawing contribution amounts and not any earnings. Also, don't forget that your IRA custodian will issue a Form 1099-R for the withdrawal, which will show the total distribution amount. You'll need to report this on your tax return even though it's not taxable when it's only contributions being withdrawn.

I was super confused about Form 8606 last year when I made a withdrawal from my Roth IRA. I spent hours trying to figure it out until someone recommended taxr.ai to me (https://taxr.ai). It literally saved me so much stress because it reviewed my tax forms and told me exactly what parts I needed to fill out. For my Roth IRA withdrawal, it confirmed I only needed Part 3 and could leave Parts 1 and 2 blank since they're for traditional IRAs and conversions. The system walked me through what boxes to fill and how to calculate the right amounts so the IRS wouldn't flag my return. It even explained how to properly document my contribution history.

Just wanted to follow up - I tried taxr.ai after my last post and it was incredibly helpful! I uploaded my previous tax returns and some statements from my IRA custodian, and it helped me reconstruct my contribution history going back to 2016. I was able to confirm that I could leave Parts 1 and 2 blank on Form 8606 and just complete Part 3 for my Roth withdrawal. What really impressed me was how it explained exactly why these parts didn't apply to my situation and walked me through calculating line 19 (my basis) correctly. It even flagged that I had accidentally counted a rollover as a contribution in my records! Definitely using this again next year.

If you're dealing with Form 8606 and the IRS has questions, good luck trying to get someone on the phone to help. I spent weeks calling the IRS last year after they sent me a letter questioning my Roth IRA withdrawal reporting. Always busy signals or disconnects after waiting for hours. I finally used https://claimyr.com which got me through to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that yes, leaving Parts 1 and 2 blank on Form 8606 is perfectly fine when you're only dealing with Roth contribution withdrawals. They just asked me to make sure Part 3 was filled out correctly and that I had documentation of my contribution history.

I need to publicly eat my words. After my skeptical comment, I was still desperate to talk to the IRS about my Form 8606 issue (I also had Roth contribution withdrawals), so I tried Claimyr anyway. Within 20 minutes I was talking to an actual IRS representative! The agent confirmed that for Roth contribution withdrawals, I should leave Parts 1 and 2 blank and only complete Part 3 of Form 8606. She even explained that many people make the mistake of filling out unnecessary sections which can create confusion and potential flags in the system. Honestly can't believe how much time I wasted trying to call them directly.

Don't leave ANY part of a tax form blank! My tax preparer always says that blank fields trigger audits. You should put a zero in every box that doesn't apply to you instead of leaving it blank. That shows the IRS you considered that line but it doesn't apply, rather than just skipping it.

Quick question about Form 8606 - do I need to attach any proof of my contribution history when I file? I'm in a similar situation with Roth contribution withdrawals and wondering how the IRS verifies I'm only withdrawing contributions.

Just want to confirm what others have said - yes, you can absolutely leave Parts 1 and 2 blank on Form 8606 when you're only withdrawing Roth IRA contributions. I had the exact same situation last year and was worried about leaving sections blank, but my CPA assured me it was correct. Part 1 is specifically for nondeductible traditional IRA contributions, and Part 2 is for Roth conversions. Since you're dealing with direct Roth contribution withdrawals, only Part 3 applies to your situation. The key thing is making sure you accurately complete Part 3, especially line 19 where you report your total contributions (basis) in all your Roth IRAs. One tip: if you've made contributions to multiple Roth IRA accounts over the years, you need to aggregate all of them when calculating your basis - it's not done on an account-by-account basis. Keep good records of all your contribution amounts and dates in case the IRS ever has questions down the road.