Line 6 of Form 8606 is where you report the value of all traditional, SEP, and SIMPLE IRAs you own as of December 31, entered as one combined year-end fair market value plus any outstanding rollovers. This single number is the denominator that decides how much of a Roth conversion or IRA distribution is taxable, which is why backdoor Roth filers watch it so closely.
On Line 6 of Form 8606 you enter the total December 31 fair market value of every traditional, SEP, and SIMPLE IRA you own, added together as one figure, plus any outstanding rollovers. You exclude Roth IRAs, 401(k) and other workplace plans, and inherited IRAs. Source your number from the December 31 statement or Form 5498, Box 5 (Source: Instructions for Form 8606 (2025)).
What do you enter on Line 6 of Form 8606?
On Line 6 you enter the total value of all traditional, SEP, and SIMPLE IRAs you own as of December 31 of the tax year, combined into a single dollar figure, plus any outstanding rollovers not yet in an account at year end. The Form 8606 line label reads “value of all your traditional, SEP, and SIMPLE IRAs as of December 31” (Source: Instructions for Form 8606 (2025), Line 6).
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The word “all” is the operative instruction. This is the aggregation rule: the IRS treats every traditional, SEP, and SIMPLE IRA you own as one pooled account, no matter how many custodians hold them, so you add up all their December 31 balances into the Line 6 figure. You only complete Line 6 in a year you also took a distribution or a Roth conversion, because Line 6 sits inside the pro-rata calculation (Source: IRS Publication 590-B (2025)).
Where do you find your year-end IRA value?
Your Line 6 value comes from two reliable places: the December 31 statement each IRA custodian sends, or Box 5 of Form 5498, titled “Fair market value of account.” Each custodian issues one Form 5498 per IRA, so add Box 5 across every traditional, SEP, and SIMPLE IRA you own to build the combined Line 6 figure (Source: IRS, Instructions for Forms 1099-R and 5498 (2025)).
Form 5498 has a timing quirk: custodians are not required to send it until May 31, after the filing deadline, so most people use the December 31 account statement to file and reconcile against Box 5 later (Source: IRS, Instructions for Forms 1099-R and 5498).
What counts as an “outstanding rollover” on Line 6?
An outstanding rollover is money that left one traditional, SEP, or SIMPLE IRA (or an eligible workplace plan) and was rolling over into a traditional, SEP, or SIMPLE IRA but had not landed in any account on December 31. Because it was in transit at year end, the Line 6 instructions tell you to add it back so the pro-rata math is not understated (Source: Instructions for Form 8606 (2025), Line 6).
A common example is a 60-day rollover started in late December and completed in early January: the distributed dollars appear on no December 31 statement, yet they are still your pre-tax IRA money, so you include them on Line 6. Direct transfers already reflected in a year-end balance are not outstanding rollovers.
What Line 6 includes and excludes
Line 6 includes only the December 31 value of accounts the IRS treats as traditional IRAs for aggregation: traditional IRAs, SEP IRAs, and SIMPLE IRAs, plus outstanding rollovers into those accounts. It excludes Roth IRAs, employer plans such as 401(k) and 403(b) accounts, and IRAs you inherited (Source: Instructions for Form 8606 (2025)).
| Account or item | In the Line 6 figure? |
|---|---|
| Traditional IRA (December 31 value) | Yes |
| SEP IRA (December 31 value) | Yes |
| SIMPLE IRA (December 31 value) | Yes |
| Outstanding rollover in transit at year end | Yes, add it back |
| Roth IRA | No |
| 401(k), 403(b), 457, TSP, other workplace plan | No |
| Inherited IRA (traditional or Roth) | No, tracked separately |
Source: Instructions for Form 8606 (2025); IRS Publication 590-B (2025).
Does Line 6 include Roth IRAs or 401(k)s?
No. Line 6 counts only traditional, SEP, and SIMPLE IRA balances, so both Roth IRAs and workplace plans stay out. Roth IRAs are excluded because their distributions follow separate ordering rules in Part III of Form 8606, and 401(k), 403(b), and similar employer plans are excluded because they are not IRAs and the pro-rata rule only aggregates IRAs (Source: Instructions for Form 8606 (2025)).
Keeping pre-tax money inside a 401(k) rather than an IRA is exactly why some savers can run a clean backdoor Roth: money in the employer plan never touches the Line 6 denominator. For the mechanics of the conversion itself, see the Q3 Advisors Roth conversion resource.
Do you include an inherited IRA on Line 6?
No. An IRA you inherited is not part of your own Line 6 figure and does not enter your own pro-rata calculation. Inherited IRA basis and value are tracked on a separate Form 8606, so a large inherited traditional IRA does not increase the taxable share of a conversion from your own IRAs (Source: IRS Publication 590-B (2025), “Distributions to beneficiaries”).
The one exception a spouse should know: a surviving spouse who elects to treat an inherited IRA as their own folds it into their own accounts, at which point its December 31 value does count on their Line 6. A non-spouse beneficiary keeps the inherited account fully separate.
Why Line 6 is the pro-rata denominator
Line 6 matters because it is the denominator of the pro-rata rule, the calculation that sets how much of a conversion or distribution is taxable. The nontaxable share equals your total after-tax basis divided by the combined December 31 value of all traditional, SEP, and SIMPLE IRAs on Line 6. A larger Line 6 figure shrinks the nontaxable fraction and pushes more of the conversion into ordinary income (Source: Instructions for Form 8606 (2025)).
This is the Line 6 trap in backdoor Roth planning: a saver expects a fresh $7,500 nondeductible contribution to convert tax-free, but an existing pre-tax rollover IRA sits in the Line 6 denominator and makes most of the conversion taxable. How much to convert in a year is its own question, covered in the Q3 Advisors how much to convert to Roth guide.
A worked pro-rata example (2026 figures)
Assume a hypothetical taxpayer makes a $7,500 nondeductible contribution for 2026 (the 2026 IRA limit under IRS Notice 2025-67), converts that $7,500 to a Roth, and also holds a rollover traditional IRA worth $67,500 on December 31. Because Line 6 aggregates every traditional IRA, the pro-rata rule splits the conversion as follows. This example is illustrative only.
- After-tax basis (Line 1 through Line 5): $7,500.
- Line 6, December 31 value of all traditional IRAs: $67,500 rollover plus the $7,500 just converted, which is added back, equals $75,000.
- Nontaxable ratio: $7,500 basis divided by $75,000 equals 10 percent.
- Nontaxable part of the conversion: 10 percent of $7,500 equals $750.
- Taxable part added to ordinary income: $7,500 minus $750 equals $6,750.
- Remaining basis carried forward on Line 14: $6,750.
The result: only $750 of a supposedly tax-free backdoor Roth escapes tax, and $6,750 becomes taxable income. Weighing that cost against the long-run benefit is what the Q3 Advisors Roth conversion break-even analysis is built for (Source: IRS Publication 590-B (2025)).
The December 31 timing trap for a backdoor Roth
Line 6 is measured on December 31, not on the day you convert, so a pre-tax balance that lands in a traditional IRA before year end poisons a backdoor Roth even if the account was empty at conversion. A pre-tax 401(k) rolled into an IRA in November shows up on Line 6 that December 31 and pulls most of the conversion into taxable income (Source: Instructions for Form 8606 (2025), Line 6).
The common fix is to keep pre-tax dollars out of an IRA by December 31. Many savers whose workplace plan accepts roll-ins move pre-tax IRA money back into the 401(k) before year end, which drops the Line 6 figure toward zero and restores a clean conversion. Whether a plan accepts roll-ins depends on the plan document. The year-end deadline is covered in the Q3 Advisors Roth conversion deadline guide.
What to do if Line 6 doesn’t populate in your tax software
If Line 6 stays blank when you enter a backdoor Roth, the usual cause is order of entry: many programs only build Part I once you record both the nondeductible contribution and the Form 1099-R for the conversion. Enter the contribution first, then the 1099-R showing the conversion, and answer the year-end value prompt so the software can complete Line 6 (Source: Instructions for Form 8606 (2025), Part I).
A blank Line 6 alongside a real December 31 balance is a red flag that the pro-rata rule was skipped and the conversion is being understated as tax-free, so review the generated Form 8606 before filing.
The three parts of Form 8606 and where Line 6 fits
Form 8606 has three parts, and Line 6 lives in Part I. Part I covers nondeductible contributions, basis, and the pro-rata split for distributions and conversions from traditional, SEP, and SIMPLE IRAs, with Line 6 as its year-end value input. Part II reports conversions to a Roth IRA. Part III reports certain Roth IRA distributions (Source: Instructions for Form 8606 (2025)).
Inside Part I, Line 6 is one link in a chain: your basis flows down from Lines 1 through 5, Line 6 supplies the total year-end IRA value, and Lines 8 through 14 combine them to split the taxable amount and carry your remaining basis into the next year (Source: Instructions for Form 8606 (2025), Part I).
Who must file Form 8606
You file Form 8606 for a tax year when after-tax IRA money is in play: you made a nondeductible traditional IRA contribution, converted traditional, SEP, or SIMPLE IRA money to a Roth, took a distribution while your basis was above zero, or took certain Roth IRA distributions. Fully deductible contributions with no distribution do not trigger the form. Each spouse files a separate Form 8606, even on a joint return (Source: Instructions for Form 8606 (2025)).
Line-by-line: reporting a backdoor Roth on Form 8606
A backdoor Roth touches Part I and Part II of Form 8606: a nondeductible contribution on Line 1, the year-end IRA value on Line 6, the conversion amount on Line 8, and the taxable result flowing through Lines 9 through 18. The line map below reflects the 2025 form; confirm current-year numbers against the form you file (Source: Instructions for Form 8606 (2025)).
| Line | What it captures |
|---|---|
| Line 1 | Nondeductible contributions to traditional IRAs for the year |
| Lines 2 to 5 | Prior-year basis added to the current year to reach total basis |
| Line 6 | Total December 31 value of ALL traditional, SEP, and SIMPLE IRAs, plus outstanding rollovers |
| Line 7 | Distributions taken during the year, not counting conversions |
| Line 8 | Net amount converted to a Roth during the year |
| Lines 9 to 13 | Pro-rata split producing the nontaxable portion |
| Line 14 | Remaining total basis carried to future years |
| Lines 16 to 18 | Conversion amount, its basis, and the taxable portion of the conversion |
Source: Instructions for Form 8606 (2025). In a clean backdoor Roth with no other pre-tax IRA money, Line 6 is zero and the whole conversion is nontaxable. The moment Line 6 is above zero, the pro-rata rule changes the outcome.
Contribution limits and deduction phase-outs (2025 and 2026)
Nondeductible contributions, the reason many people file Form 8606, usually appear when income phases out the traditional IRA deduction. The 2026 IRA contribution limit is $7,500, with a $1,100 catch-up at age 50 and older for $8,600 total (Source: IRS Notice 2025-67 and IRS newsroom release, Nov. 13, 2025).
| Item | 2025 | 2026 |
|---|---|---|
| IRA contribution limit (under 50) | $7,000 | $7,500 |
| Catch-up (age 50+) | $1,000 ($8,000 total) | $1,100 ($8,600 total) |
| Deduction phase-out, single/HoH (covered by workplace plan) | $79,000 to $89,000 | $81,000 to $91,000 |
| Deduction phase-out, MFJ (contributor covered) | $126,000 to $146,000 | $129,000 to $149,000 |
| Roth contribution phase-out, single/HoH | $150,000 to $165,000 | $153,000 to $168,000 |
| Roth contribution phase-out, MFJ | $236,000 to $246,000 | $242,000 to $252,000 |
Sources: IRS Publication 590-A (2025); IRS newsroom release and Notice 2025-67 for 2026 figures. A Roth conversion, unlike a contribution, has no income limit and no dollar cap, which is why the backdoor route works. Conversion income can raise net investment income tax exposure and later interact with required minimum distributions.
How to fix a missing or never-filed Form 8606
If you never filed Form 8606 for past nondeductible contributions, the fix is to file the missing forms and rebuild your basis record. Prepare a separate Form 8606 for each year a nondeductible contribution was made using that year’s version of the form. A standalone Form 8606 is allowed when a return is not otherwise required, and the $50 late-filing penalty can be waived for reasonable cause (Source: Instructions for Form 8606 (2025)).
- Gather the records the IRS lists: Forms 5498, prior tax returns, and IRA statements for each nondeductible contribution year.
- Prepare a separate Form 8606 for each affected year using that year’s form.
- If no return was required for a year, sign and send that Form 8606 on its own to the IRS at the same address you would file Form 1040.
- If the omission changed your tax, file the corrected Form 8606 with Form 1040-X for that year.
- Attach a brief reasonable-cause statement explaining why the form was missed and confirming that basis is now recorded.
Keeping a running record of your Line 14 basis year to year prevents the double taxation the form exists to stop. Because reasonable-cause relief depends on individual facts, many people confirm the specifics with a tax professional (Source: Instructions for Form 8606 (2025)).
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This page is educational and is not advice; consult a qualified professional.
Frequently asked questions
What do I put on line 6 of Form 8606?
On Line 6 you put the total fair market value of all traditional, SEP, and SIMPLE IRAs you own as of December 31, combined into one figure, plus any outstanding rollovers not yet in an account at year end. You exclude Roth IRAs, workplace plans, and inherited IRAs. This figure drives the pro-rata rule (Source: Instructions for Form 8606 (2025)).
Does line 6 of Form 8606 include Roth IRAs?
No. Line 6 counts only traditional, SEP, and SIMPLE IRA values, so Roth IRAs are excluded entirely. Roth accounts follow their own ordering rules in Part III of Form 8606 and never enter the pro-rata denominator for a traditional IRA conversion or distribution (Source: Instructions for Form 8606 (2025)).
Do I include an inherited IRA on Form 8606 line 6?
No. An IRA you inherited is kept separate from your own accounts and does not belong in your Line 6 figure or your own pro-rata math. Its basis and value are tracked on a separate Form 8606. The exception is a surviving spouse who elects to treat the inherited IRA as their own (Source: IRS Publication 590-B (2025)).
What are outstanding rollovers on Form 8606 line 6?
An outstanding rollover is IRA or plan money that was in transit on December 31, distributed from one account but not yet deposited in the receiving traditional, SEP, or SIMPLE IRA. Because no year-end statement reflects it, the Line 6 instructions tell you to add it back so the pro-rata calculation is complete (Source: Instructions for Form 8606 (2025)).
Where do I find the value of my IRAs for Form 8606 line 6?
Use your December 31 account statement from each IRA custodian, or Box 5 of Form 5498, labeled “Fair market value of account.” Add the December 31 value across every traditional, SEP, and SIMPLE IRA you own. Custodians may not send Form 5498 until May 31, so most filers rely on the year-end statement first (Source: IRS, Instructions for Forms 1099-R and 5498).
Does a 401(k) count toward Form 8606 line 6?
No. A 401(k) and other workplace plans, including 403(b), 457, and the TSP, are not IRAs, so they are excluded from Line 6. Keeping pre-tax money inside a 401(k) instead of an IRA is what lets some savers run a clean backdoor Roth, because that balance never enters the pro-rata denominator (Source: Instructions for Form 8606 (2025)).
What if line 6 doesn’t populate for my backdoor Roth?
A blank Line 6 usually means the tax software has not yet linked your nondeductible contribution to the conversion. Enter the contribution, then enter the Form 1099-R for the conversion, and answer the year-end value prompt. A blank Line 6 with a real December 31 balance signals the pro-rata rule was skipped, so review Form 8606 before filing (Source: Instructions for Form 8606 (2025)).
Sources
Instructions for Form 8606 (2025): https://www.irs.gov/instructions/i8606
IRS, About Form 8606: https://www.irs.gov/forms-pubs/about-form-8606
IRS Publication 590-A (2025): https://www.irs.gov/publications/p590a
IRS Publication 590-B (2025): https://www.irs.gov/publications/p590b
IRS, Instructions for Forms 1099-R and 5498 (2025): https://www.irs.gov/instructions/i1099r
IRS newsroom release (Nov. 13, 2025) and Notice 2025-67: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
About the author
Craig Wear, CFP®, is the founder of Q3 Advisors, a registered investment adviser focused on retirement tax planning, including Roth conversion analysis and IRA distribution strategy. This article reflects IRS rules and figures published as of the last-reviewed date.
