Instructions For Form 8606 - 2016 (Page 2 of 13) in pdf

IRAs minus the total of all your

from your Roth IRA that meets the

a. Roth IRA conversions included

nontaxable distributions, adjusted if

following requirements.

on Form 1040, line 15b; Form 1040A,

necessary (see the instructions for

line 11b; or Form 1040NR, line 16b.

1. It is made after the 5-year period

line

2, later).

beginning with the first year for which a

b. Roth IRA rollovers from qualified

contribution was made to a Roth IRA

retirement plans included on Form

Keep track of your basis to

(including a conversion or a rollover

1040, line 16b; Form 1040A, line 12b; or

figure the nontaxable part of

from a qualified retirement plan) set up

Form 1040NR, line 17b.

your future distributions.

CAUTION

for your benefit, and

2. Adding the following.

SEP IRAs

2. The distribution is made:

a. IRA deduction from Form 1040,

A simplified employee pension (SEP) is

a. On or after the date you reach

line 32; Form 1040A, line 17; or Form

an employer-sponsored plan under

age 59

1040NR, line 32.

which an employer can make

b. After your death,

b. Student loan interest deduction

contributions to traditional IRAs for its

from Form 1040, line 33; Form 1040A,

c. Due to your disability, or

employees. If you make contributions to

line 18; or Form 1040NR, line 33.

d. For qualified first-time homebuyer

that IRA (excluding employer

c. Tuition and fees deduction from

expenses.

contributions you make if you are

Form 1040, line 34; or Form 1040A,

self-employed), they are treated as

line 19.

Contributions. You can contribute to a

contributions to a traditional IRA and

Roth IRA for 2016 only if your 2016

d. Domestic production activities

may be deductible or nondeductible.

modified AGI for Roth IRA purposes is

deduction from Form 1040, line 35; or

SEP IRA distributions are reported in

less than:

Form 1040NR, line 34.

the same manner as traditional IRA

$194,000 if married filing jointly or

distributions.

e. Exclusion of interest from Form

qualifying widow(er);

8815, Exclusion of Interest From Series

SIMPLE IRAs

$132,000 if single, head of

EE and I U.S. Savings Bonds Issued

household, or if married filing separately

A SIMPLE IRA plan is a tax-favored

After 1989.

and you didn’t live with your spouse at

retirement plan that certain small

f. Exclusion of employer-provided

any time in 2016; or

employers (including self-employed

adoption benefits from Form 8839,

$10,000 if married filing separately

individuals) can set up for the benefit of

Qualified Adoption Expenses.

and you lived with your spouse at any

their employees. Your participation in

time in 2016.

g. Foreign earned income exclusion

your employer's SIMPLE IRA plan

from Form 2555, Foreign Earned

doesn’t prevent you from making

Use the

Maximum Roth IRA

Income, or Form 2555-EZ, Foreign

contributions to a traditional or Roth

Contribution Worksheet

later to figure

Earned Income Exclusion.

IRA.

the maximum amount you can

contribute to a Roth IRA for 2016. If you

h. Foreign housing exclusion or

Roth IRAs

are married filing jointly, complete the

deduction from Form 2555.

A Roth IRA is similar to a traditional IRA,

worksheet separately for you and your

When figuring modified AGI for

but has the following features.

spouse.

Roth IRA purposes, you may

Contributions are never deductible.

If you contributed too much to

have to refigure items based on

Contributions can be made after the

CAUTION

your Roth IRA, see

modified AGI, such as taxable social

owner reaches age 70

Recharacterizations, later.

security benefits and passive activity

No minimum distributions are

CAUTION

losses allowed under the special

required during the Roth IRA owner's

Modified AGI for Roth IRA purposes.

allowance for rental real estate

lifetime.

First, figure your AGI (Form 1040,

activities. See Can You Contribute to a

Qualified distributions aren’t

line 38; Form 1040A, line 22; or Form

Roth IRA? in Pub. 590-A for details.

includible in income.

1040NR, line 37). Then, refigure it by:

Qualified distribution. Generally, a

Distributions. See the instructions for

1. Subtracting the following.

qualified distribution is any distribution

Part

III, later.

Instructions for Form 8606 (2016)

Instructions For Form 8606 - 2016 Page 2

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