Instructions For Form 8606 - Nondeductible Iras

Line 16

For this purpose, a qualified

If the taxpayer died during 2010 after

retirement plan includes a: qualified

making a rollover, the taxable amount

If you did not complete line 8, see the

employer plan (such as a 401(k) plan);

of the rollover may not be spread over

instructions for that line. Then, enter on

qualified employee annuity;

2 years (2011 and 2012). The tax

line 16 the amount you would have

tax-sheltered annuity (403(b) plan); and

return of the deceased taxpayer must

entered on line 8 had you completed it.

show (a) the entire taxable amount in

an eligible state or local government

section 457(b) plan. An IRA is not

2010 or (b) in the case of a rollover to a

Line 17

included for this purpose.

Roth IRA, a recharacterization (see

If you did not complete line 11, enter on

•

You made an in-plan Roth rollover

page 3) of the rollover.

line 17 the amount from line 2 (or the

after September 27, 2010, and before

Exception for surviving spouse. A

amount you would have entered on line

January 1, 2011. An in-plan Roth

surviving spouse who is the sole

2 if you had completed that line) plus

rollover is an amount from your 401(k)

beneficiary of his or her spouse’s Roth

any contributions included on line 1 that

or 403(b) plan rolled over to a

IRA or designated Roth account may

you made before the conversion.

designated Roth account within the

elect to treat the taxable amount in the

same plan.

same way as the deceased taxpayer.

Line 19

This election cannot be made or

If you have both a rollover to a

You can include the entire taxable

changed after the due date (including

Roth IRA and an in-plan Roth

amount on line 18 in your income for

extensions) for the spouse’s tax return

rollover as described above, you

2010 or spread it over 2 years (2011

CAUTION

which includes the date of death.

must complete and file a separate Form

and 2012). If you elect to include the

8606, Part III, to report each type of

entire amount in income for 2010,

Part IV—Distributions

rollover.

complete line 19. Otherwise, skip line

From Roth IRAs (and

19 and complete lines 20a and 20b.

Line 21

Any amount on line 20a must be

Certain Distributions

included in your income for 2011 and

Rollovers to a Roth IRA. Enter on

any amount on line 20b must be

from Designated Roth

line 21 the net amount you rolled over

included in your income for 2012.

from qualified retirement plans to a

Accounts)

Roth IRA in 2010. To figure the net

You cannot change your treatment

Complete Part IV, if one or both of the

of the conversion after the due date

amount, subtract from the total amount

following apply.

(including extensions) for your tax

rolled over in 2010 any portion that you

•

You need to figure the taxable part, if

return.

recharacterized to a traditional IRA in

any, of 2010 distributions from your

2010 or 2011 (see Recharacterizations

Note. If you check the box on line 19,

Roth IRA.

that begins on page 3). Do not take into

you must also check the box on line 24

•

You took a distribution in 2010 from

account related earnings that were

for a rollover to a Roth IRA.

your designated Roth account allocable

transferred with the recharacterized

to an in-plan Roth rollover. Go to

If the taxpayer died during 2010 after

amount or any loss that occurred while

Certain Distributions From Designated

the amount was in the Roth IRA. See

making a conversion, the taxable

Roth Accounts on page 8, to see if you

amount of the conversion may not be

item 4 under Reporting

need to complete the Designated Roth

recharacterizations that begins on page

spread over 2 years (2011 and 2012).

Account Income Acceleration

The tax return of the deceased

3 for details.

Worksheet on page 8. Do not complete

taxpayer must show (a) the entire

In-plan Roth rollovers. Enter on line

lines 26 through 35 of Form 8606.

taxable amount in 2010 or (b) a

21 the amount of your in-plan Roth

recharacterization (see page 3) of the

Accelerated income inclusion. If, in

rollovers. This should be the amount in

conversion.

2010, you converted amounts from

box 1 of Form 1099-R. Unlike

traditional, SEP, or SIMPLE IRAs to

Exception for surviving spouse. A

conversions or rollovers to Roth IRAs,

your Roth IRA, or you rolled over

surviving spouse who is the sole

you cannot recharacterize any amount

amounts from a qualified retirement

beneficiary of his or her spouse’s Roth

of an in-plan Roth rollover.

plan to a Roth IRA, you are allowed to

IRA may elect to treat the taxable

include the taxable amount in income in

Line 22

amount in the same way as the

equal amounts in 2011 and 2012.

deceased taxpayer. This election

Enter on line 22 any contributions that

However, if you received distributions of

cannot be made or changed after the

were taxable to you when made

conversion or rollover amounts in 2010,

due date (including extensions) for the

(after-tax contributions). This amount is

you may be required to include a

spouse’s tax return which includes the

your investment or basis in the contract

portion of the distribution allocable to

date of death.

(after-tax contributions). This amount is

the conversion or rollover in income in

usually shown in box 5 of Form 1099-R.

2010.

Part III—2010 Rollovers

Line 24

Line 26

From Qualified

You can include the entire taxable

Do not include on line 26 any of the

Retirement Plans to Roth

amount on line 23 in your income for

following.

•

2010 or spread it over 2 years (2011

IRAs and In-plan

Distributions that you rolled over,

and 2012). If you elect to include the

including distributions made in 2010

Rollovers to Designated

entire amount in income for 2010,

and rolled over after December 31,

complete line 24. Otherwise, skip line

2010 (outstanding rollovers).

Roth Accounts

•

24 and complete lines 25a and 25b.

Recharacterizations.

•

Any amount on line 25a must be

Complete Part III if you rolled over an

Distributions that are a return of

included in your income for 2011 and

amount described below. If both of the

contributions under Return of IRA

any amount on line 25b must be

following apply, you must complete and

Contributions on page 4.

•

included in your income for 2012.

file a separate Form 8606, Part III, to

Distributions made on or after age

report each type of rollover.

if you made a contribution

You cannot change your treatment

•

You rolled over part or all of your

(including a conversion) for 2005 or an

of the rollover after the due date

qualified retirement plans (other than

earlier year. However, see Certain

(including extensions) for your tax

designated Roth accounts) to a Roth

qualified distributions (other than

return.

IRA in 2010, excluding any portion you

qualified first-time homebuyer

recharacterized. See item 4 under

Note. If you checked the box on line

distributions) on page 8.

•

Reporting recharacterizations starting

19, you must also check the box on line

A one-time distribution to fund an

on page 3 for details.

24 for a rollover to a Roth IRA.

HSA. For details, see Pub. 969.

-7-

Instructions for Form 8606 (2010)

Instructions For Form 8606 - Nondeductible Iras - 2010 Page 7

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