Instructions For Form 8606 - 2016 (Page 7 of 13) in pdf

(line 10 for Form 1040A) of the

(see the last bulleted item under

Line

recharacterized any amounts originally

worksheet (or the amount you chose to

later).

contributed, converted, or rolled over

deduct on Form 1040 or Form 1040NR,

You rolled over any nontaxable

from a qualified plan in 2016, enter on

line 32, or Form 1040A, line 17, if less)

portion of your qualified retirement plan

line 6 the total value, taking into account

from the smaller of line 10 or line 11

to a traditional or SEP IRA that wasn’t

all recharacterizations of those

(line 8 or line 9 for Form 1040A) of the

previously reported on Form 8606,

amounts, including recharacterizations

worksheet. Enter the result on line 1 of

line 2. Include the nontaxable portion on

made after December 31, 2016.

Form 8606. You can’t deduct the

line 2.

For purposes of line 6, a rollover is a

amount included on line 1.

Line 4

tax-free distribution from one traditional,

If you used the worksheet Figuring

SEP, or SIMPLE IRA that is contributed

If you made contributions to traditional

Your Reduced IRA Deduction for 2016

to another traditional, SEP, or SIMPLE

IRAs for 2016 in 2016 and 2017 and you

IRA. The rollover must be completed

in Pub. 590-A, enter on line 1 of Form

have both deductible and nondeductible

within 60 days after receiving the

8606 any nondeductible contributions

contributions, you can choose to treat

distribution from the first IRA. An

from the appropriate lines of that

the contributions made in 2016 first as

outstanding rollover is generally the

worksheet.

nondeductible contributions and then as

amount of any distribution received in

deductible contributions, or vice versa.

If you didn’t have any deductible

2016 after November 1, 2016, that was

contributions, you can make

Example. You made contributions

rolled over in 2017, but within the

nondeductible contributions up to your

for 2016 of $2,000 in May 2016 and

60-day rollover period. A rollover

contribution limit (see

Overall

$2,000 in January 2017, of which

between a SIMPLE IRA and a qualified

Contribution Limit for Traditional and

$3,000 are deductible and $1,000 are

retirement plan or an IRA (other than a

Roth

IRAs, earlier). Enter on line 1 of

nondeductible. You choose $1,000 of

SIMPLE IRA) can only take place after

Form 8606 your nondeductible

your contribution in 2016 to be

your first 2 years of participation in the

contributions.

nondeductible. You enter the $1,000 on

SIMPLE IRA. See Pub. 590-A for more

line 1, but not line 4, and it becomes

details.

Include on line 1 any repayment of a

part of your basis for 2016.

qualified reservist distribution.

The IRS may waive the 60-day

Although the contributions to

requirement if failing to waive it would

Don’t include on line 1 contributions

traditional IRAs for 2016 that you made

be against equity or good conscience,

that you had returned to you with the

from January 1, 2017, through April 18,

such as situations where a casualty,

related earnings (or less any loss). See

2017, can be treated as nondeductible,

disaster, or other events beyond your

Return of IRA

Contributions, earlier.

they aren’t included in figuring the

reasonable control prevented you from

Line 2

nontaxable part of any distributions you

meeting the 60-day requirement. Also,

received in 2016.

Generally, if this is the first year you are

the 60-day period will be extended for

required to file Form 8606, enter -0-.

certain frozen deposits. See Can You

Line 6

Otherwise, use the

Total Basis

Chart,

Move Retirement Plan Assets? in

Enter the total value of all your

later, to find the amount to enter on

chapter 1 of Pub. 590-A for details.

traditional, SEP, and SIMPLE IRAs as of

line 2.

December 31, 2016, plus any

Note. Don’t include a rollover from a

However, you may need to enter an

outstanding rollovers. A statement

traditional, SEP, or SIMPLE IRA to a

amount that is more than -0- (even if this

should be sent to you by January 31,

qualified retirement plan even if it was

is the first year you are required to file

2017, showing the value of each IRA on

an outstanding rollover.

Form 8606) or increase or decrease the

December 31, 2016. However, if you

amount from the chart if your basis

changed because of any of the

following.

You had a return of excess traditional

IRA contributions (see

Return of Excess

Traditional IRA

Contributions, earlier).

Incident to divorce, you transferred or

received part or all of a traditional IRA

Total Basis Chart

IF the last Form 8606 you filed was

THEN enter on line 2 . . .

for . . .

A year after 2000 and before 2016

The amount from line 14 of that Form 8606

A year after 1992 and before 2001

The amount from line 12 of that Form 8606

A year after 1988 and before 1993

The amount from line 14 of that Form 8606

1988

The total of the amounts on lines 7 and 16

of that Form 8606

1987

The total of the amounts on lines 4 and 13

of that Form 8606

Instructions for Form 8606 (2016)

Instructions For Form 8606 - 2016 Page 7

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