Instructions For Form 8606 - Nondeductible Iras

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 8606

Nondeductible IRAs

•

Section references are to the Internal

Nondeductible contributions you

recharacterized the entire

made to traditional IRAs,

rollover — see page 3).

Revenue Code unless otherwise noted.

•

Distributions from traditional, SEP, or

You received distributions from a

General Instructions

SIMPLE IRAs, if you have ever made

Roth IRA in 2010 (other than a rollover,

nondeductible contributions to

recharacterization, or return of certain

What’s New

traditional IRAs,

contributions — see page 7).

•

Distributions from Roth IRAs,

You rolled over an amount from your

•

Modified AGI limit for Roth IRA

Conversions from traditional, SEP, or

401(k) or 403(b) plan to a designated

contributions increased. You can

SIMPLE IRAs to Roth IRAs,

Roth account within the same plan

•

contribute to a Roth IRA for 2010 only if

Rollovers from qualified retirement

(in-plan Roth rollover) after September

your 2010 modified adjusted gross

plans (other than designated Roth

27, 2010. See the instructions for Part

income (AGI) for Roth IRA purposes is

accounts) to Roth IRAs,

III on page 7.

•

less than:

In-plan Roth rollovers, and

You received a distribution from your

•

$177,000 if married filing jointly or

Certain distributions from designated

designated Roth account after

qualifying widow(er),

Roth accounts allocable to in-plan Roth

September 27, 2010, that is allocable to

•

$120,000 if single, head of

rollovers.

an in-plan Roth rollover (only if the

household, or married filing separately

in-plan Roth rollover is included in

Additional information. See Pub.

and you did not live with your spouse at

income in 2011 and 2012). See the

590 for more details on IRAs. See Pub.

any time in 2010, or

instructions for Part IV on page 7.

575 for more details on in-plan Roth

•

$10,000 if married filing separately

You made a repayment of a qualified

rollovers and qualified retirement plans.

and you lived with your spouse at any

disaster recovery assistance, or

time in 2010.

qualified recovery assistance

If you received distributions from

See Roth IRAs on page 2.

distribution that is attributable to

a traditional, SEP, or SIMPLE

TIP

previously nondeductible contributions.

IRA in 2010 and you have never

New rules for rollovers and

•

You received a distribution from an

made nondeductible contributions

conversions from eligible retirement

inherited Roth IRA that was not a

(including nontaxable amounts you

plans to Roth IRAs. Starting in 2010,

qualified distribution or from an

rolled over from a qualified retirement

the $100,000 modified AGI limit on

inherited traditional IRA that has basis

plan) to traditional IRAs, do not report

rollovers and conversions from eligible

or you rolled over an inherited plan

the distributions on Form 8606. Instead,

retirement plans to Roth IRAs is

account to a Roth IRA.

see the instructions for Form 1040,

eliminated and married taxpayers filing

lines 15a and 15b; Form 1040A, lines

a separate return can now roll over or

Note. If you recharacterized a 2010

11a and 11b; or Form 1040NR, lines

convert amounts to a Roth IRA. Unless

Roth IRA contribution as a traditional

16a and 16b. Also, to find out if any of

you elect otherwise, half of the income

IRA contribution, or vice versa, treat the

your contributions to traditional IRAs

as the result of a rollover or conversion

contribution as having been made to

are deductible, see the instructions for

in 2010 is included in income in 2011

the second IRA, not the first IRA. See

Form 1040, line 32; Form 1040A, line

and the other half in 2012. Conversions

page 3.

17; or Form 1040NR, line 32.

from IRAs are reported in Part II and

rollovers from qualified retirement plans

You do not have to file Form

Who Must File

are reported in Part III. For more

TIP

8606 solely to report regular

details, see Pub. 590 or Pub. 575.

contributions to Roth IRAs. But

File Form 8606 if any of the following

see What Records Must I Keep? on

In-plan rollovers to designated Roth

apply.

page 5.

•

accounts. After September 27, 2010,

You made nondeductible

contributions to a traditional IRA for

if you are a plan participant in a 401(k)

When and Where To File

or 403(b) plan, your plan may permit

2010, including a repayment of a

qualified reservist distribution.

you to roll over amounts in those plans

File Form 8606 with your 2010 Form

•

to a designated Roth account within the

You received distributions from a

1040, 1040A, or 1040NR. If you are not

traditional, SEP, or SIMPLE IRA in

same plan (in-plan Roth rollover). The

required to file an income tax return but

rollover of any untaxed amounts must

2010 and your basis in traditional IRAs

are required to file Form 8606, sign

is more than zero. For this purpose, a

be included in income. Unless you elect

Form 8606 and send it to the Internal

otherwise, half of the income as the

distribution does not include a rollover,

Revenue Service at the same time and

qualified charitable distribution

result of a rollover in 2010 is included in

place you would otherwise file Form

income in 2011 and the other half in

(including a qualified charitable

1040, 1040A, or 1040NR.

distribution made in January 2011, that

2012. These rollovers are reported in

Part III. For more details, see Pub. 575.

you elect to treat as made in 2010),

Definitions

one-time distribution to fund an HSA,

Qualified charitable distributions.

conversion, recharacterization, or return

Deemed IRAs

The provision that excludes up to

of certain contributions.

$100,000 of qualified charitable

•

You converted an amount from a

A qualified employer plan (retirement

distributions from income has been

traditional, SEP, or SIMPLE IRA to a

plan) can maintain a separate account

extended. If you elect, a qualified

Roth IRA in 2010 (unless you

or annuity under the plan (a deemed

charitable distribution made in January

recharacterized the entire

IRA) to receive voluntary employee

2011, will be treated as made in 2010.

conversion — see page 3).

contributions. If in 2010 you had a

For more details, see Pub. 590.

•

You rolled over an amount from a

deemed IRA, use the rules for either a

qualified retirement plan (other than a

traditional IRA or a Roth IRA depending

Purpose of Form

designated Roth account) to a Roth

on which type it was. See Pub. 590 for

Use Form 8606 to report:

IRA in 2010 (unless you

more details.

Cat. No. 25399E

Instructions For Form 8606 - Nondeductible Iras - 2010

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