Instructions For Form 8606 - Nondeductible Iras

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be against equity or good conscience,

Distributions that are incident to

IF the last Form

THEN enter on line

8606 you filed was 2...

such as situations where a casualty,

divorce. The transfer of part or all of

for...

disaster, or other events beyond your

your traditional, SEP, or SIMPLE IRA to

reasonable control prevented you from

your spouse under a divorce or

A year after 2000

The amount from

meeting the 60-day requirement. Also,

separation agreement is not taxable to

and before 2010

line 14 of that Form

the 60-day period may be extended if

you or your spouse. If this transfer

8606

you had a frozen deposit. See Pub. 590

results in a change in the basis of the

A year after 1992

The amount from

for details.

traditional IRA of either spouse, both

and before 2001

line 12 of that Form

spouses must file Form 8606 and show

You must reduce the amount on

8606

the increase or decrease in the amount

line 6 by any qualified charitable

of basis on line 2. Attach a statement

A year after 1988

The amount from

distributions you made in

CAUTION

explaining this adjustment. Include in

and before 1993

line 14 of that Form

January 2011 that you are electing to

8606

the statement the character of the

treat as made in 2010. See Pub. 590

amounts in the traditional IRA, such as

for more details.

1988

The total of the

the amount attributable to

amounts on lines 7

Note. Do not include a rollover from a

nondeductible contributions. Also,

and 16 of that Form

traditional, SEP, or SIMPLE IRA to a

include the name and social security

8606

qualified retirement plan even if it was

number of the other spouse.

an outstanding rollover.

1987

The total of the

amounts on lines 4

Line 8

Line 7

and 13 of that Form

8606

If, in 2010, you converted any amounts

from traditional, SEP, or SIMPLE IRAs

If you received a distribution in

to a Roth IRA, enter on line 8 the net

2010 from a traditional, SEP, or

Line 4

amount you converted. To figure that

SIMPLE IRA, and you also

CAUTION

If you made contributions to traditional

amount, subtract from the total amount

made contributions for 2010 to a

IRAs for 2010 in 2010 and 2011 and

converted in 2010 any portion that you

traditional IRA that may not be fully

you have both deductible and

recharacterized back to traditional,

deductible because of the income

nondeductible contributions, you can

limits, you must make a special

SEP, or SIMPLE IRAs in 2010 or 2011

choose to treat the contributions made

computation before completing the rest

(see Recharacterizations that begins on

in 2010 first as nondeductible

of this form. For details, including how

page 3). Do not take into account

contributions and then as deductible

to complete Form 8606, see Are

related earnings that were transferred

contributions, or vice versa.

Distributions Taxable? in chapter 1 of

with the recharacterized amount or any

Pub. 590.

loss that occurred while the amount

Example. You made contributions

was in the Roth IRA. See item 1 under

for 2010 of $2,000 in May 2010 and

Do not include any of the following

Reporting recharacterizations on

$2,000 in January 2011, of which

on line 7.

page 3 for details.

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

Distributions that you converted to a

nondeductible. You choose $1,000 of

Roth IRA.

•

Line 15

your contribution in 2010 to be

Recharacterizations.

•

nondeductible. You enter the $1,000 on

Distributions that you rolled over by

If you were under age 59

at the time

line 1, but not line 4, and it becomes

December 31, 2010, and any

you received distributions from your

part of your basis for 2010.

outstanding rollovers included on

traditional, SEP, or SIMPLE IRA, there

line 6.

Although the contributions to

generally is an additional 10% tax on

•

Distributions you rolled over to a

traditional IRAs for 2010 that you made

the portion of the distribution that is

qualified retirement plan.

from January 1, 2011, through April 18,

included in income (25% for a

•

A one-time distribution to fund an

2011, can be treated as nondeductible,

distribution from a SIMPLE IRA during

HSA. For details, see Pub. 969, Health

they are not included in figuring the

the first 2 years). See the Instructions

Savings Accounts and Other

nontaxable part of any distributions you

for Form 1040, line 58, or the

Tax-Favored Health Plans.

received in 2010.

Instructions for Form 1040NR, line 56.

•

Distributions that are treated as a

Line 6

return of contributions under Return of

Part II—2010

IRA Contributions on page 4.

Enter the total value of all your

•

Qualified charitable distributions. For

traditional, SEP, and SIMPLE IRAs as

Conversions From

details see, Pub. 590.

of December 31, 2010, plus any

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Traditional, SEP, or

Qualified charitable distributions you

outstanding rollovers. A statement

made in January 2011, that you elect to

should be sent to you by January 31,

SIMPLE IRAs to Roth

treat as made in 2010. For details, see

2011, showing the value of each IRA

Pub. 590.

IRAs

on December 31, 2010. However, if you

•

Distributions that are treated as a

recharacterized any amounts, enter on

Complete Part II if you converted part

return of excess contributions under

line 6 the total value taking into account

or all of your traditional, SEP, or

Return of Excess Traditional IRA

all recharacterizations, including

SIMPLE IRAs to a Roth IRA in 2010,

Contributions on page 4.

recharacterizations made after

•

Distributions of excess contributions

excluding any portion you

December 31, 2010.

recharacterized. See item 1 under

due to incorrect rollover information. If

For line 6, a rollover is a tax-free

an excess contribution in your

Reporting recharacterizations on

distribution from one traditional, SEP, or

traditional IRA is the result of a rollover

page 3 for details.

SIMPLE IRA that is contributed to

from a qualified retirement plan and the

another traditional, SEP, or SIMPLE

Limit on number of conversions. If

excess occurred because the

IRA. The rollover must be completed

you converted an amount from a

information the plan was required to

within 60 days of receiving the

traditional, SEP, or SIMPLE IRA to a

give you was incorrect, the distribution

distribution from the first IRA. An

Roth IRA in 2010 and then

of the excess contribution is not

outstanding rollover is any amount

recharacterized the amount back to a

taxable. Attach a statement to your

distributed in 2010 after November 1,

traditional, SEP, or SIMPLE IRA, you

return explaining the distribution and

2010, that was rolled over in 2011, but

cannot reconvert that amount until the

include the amount of the distribution

within the 60-day rollover period.

later of January 1, 2011, or 30 days

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

after the recharacterization. See Pub.

The IRS may waive the 60-day

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

requirement if failing to waive it would

See Pub. 590 for more details.

590 for details.

-6-

Instructions for Form 8606 (2010)

Instructions For Form 8606 - Nondeductible Iras - 2010 Page 6

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