Instructions For Form 8606 - 2016 (Page 3 of 13) in pdf

Maximum Roth IRA Contribution Worksheet

Keep for Your Records

Caution: If married filing jointly and the combined taxable compensation (defined earlier) for you and your spouse is

less than $11,000 ($12,000 if one spouse is 50 or older at the end of 2016; $13,000 if both spouses are 50 or older at

the end of 2016), don’t use this worksheet. Instead, see Pub. 590-A for special rules.

1. If married filing jointly, enter $5,500 ($6,500 if age 50 or older at the end of 2016). All

others, enter the smaller of $5,500 ($6,500 if age 50 or older at the end of 2016) or

your

taxable compensation

(defined below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter your total contributions to traditional IRAs for 2016 . . . . . . . . . . . . . . . . . . . . . . . . .

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter: $194,000 if married filing jointly or qualifying widow(er); $10,000 if married

filing separately and you lived with your spouse at any time in 2016. All others, enter

$132,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter your

modified AGI for Roth IRA purposes

(discussed earlier) . . . . . . . . . . . . . . .

6. Subtract line 5 from line 4. If zero or less, stop here; you may not contribute to a

Roth IRA for 2016. See

Recharacterizations

below if you made Roth IRA

contributions for 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. If line 4 above is $132,000, enter $15,000; otherwise, enter $10,000. If line 6 is more

than or equal to line 7, skip lines 8 and 9 and enter the amount from line 3 on

line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Divide line 6 by line 7 and enter the result as a decimal (rounded to at least 3

places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Multiply line 1 by line 8. If the result isn’t a multiple of $10, increase it to the next

multiple of $10 (for example, increase $490.30 to $500). Enter the result, but not

less than $200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Maximum 2016 Roth IRA Contribution. Enter the smaller of line 3 or line 9. See

Recharacterizations

below if you contributed more than this amount to Roth IRAs

for 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

Overall Contribution Limit for

distributions don’t affect your

partner), taxable compensation is your

contribution limit.

net earnings from your trade or business

Traditional and Roth IRAs

(provided your personal services are a

The amount you can contribute

If you aren’t married filing jointly, your

material income-producing factor)

to a Roth IRA may also be

limit on contributions to traditional and

reduced by your deduction for

limited by your modified AGI

Roth IRAs is generally the smaller of

contributions made on your behalf to

CAUTION

(see Contributions, earlier, and the

$5,500 ($6,500 if age 50 or older at the

retirement plans and the deductible part

Maximum Roth IRA Contribution

end of 2016) or your

taxable

of your self-employment tax.

Worksheet

later).

compensation

(defined below).

Alimony and separate maintenance.

If you are married filing jointly, your

Taxable compensation. Taxable

See What Is Compensation? under

contribution limit is generally $5,500

compensation includes the following.

Who Can Open a Traditional IRA? in

($6,500 if age 50 or older at the end of

Wages, salaries, tips, etc. If you

chapter 1 of Pub. 590-A for details.

2016) and your spouse's contribution

received a distribution from a

limit is $5,500 ($6,500 if age 50 or older

nonqualified deferred compensation

Recharacterizations

at the end of 2016) as well. But if the

plan or nongovernmental section 457

combined taxable compensation of both

Generally, you can recharacterize

plan that is included in Form W-2, box 1,

you and your spouse is less than

(correct) an IRA contribution, Roth IRA

or in Form 1099-MISC, box 7, don’t

$11,000 ($12,000 if one spouse is 50 or

conversion, or a Roth IRA rollover from

include that distribution in taxable

older at the end of 2016; $13,000 if both

a qualified retirement plan by making a

compensation. The distribution should

spouses are 50 or older at the end of

trustee-to-trustee transfer from one IRA

be shown in (a) Form W-2, box 11; (b)

2016), see Kay Bailey Hutchison

to another type of IRA.

Form W-2, box 12, with code Z; or (c)

Spousal IRA Limit in Pub. 590-A for

Trustee-to-trustee transfers are made

Form 1099-MISC, box 15b. If it isn’t,

special rules.

directly between financial institutions or

contact your employer for the amount of

within the same financial institution. You

This limit doesn’t apply to employer

the distribution.

generally must make the transfer by the

Nontaxable combat pay if you were a

contributions to a SEP or SIMPLE IRA.

due date of your return (including

member of the U.S. Armed Forces.

extensions) and reflect it on your return.

Note. Rollovers, Roth IRA conversions,

Self-employment income. If you are

However, if you timely filed your return

Roth IRA rollovers from qualified

self-employed (a sole proprietor or a

without making the transfer, you can

retirement plans and qualified reservist

Instructions for Form 8606 (2016)

Instructions For Form 8606 - 2016 Page 3

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