Instructions For Form 8606 - Nondeductible Iras - 2005 Page 2
ADVERTISEMENT
1
2
3
4
5
6
7
8
9the same manner as traditional IRA
with the first year for which you made
Modified AGI for Roth IRA
distributions.
a Roth IRA contribution or conversion
purposes. First, figure your AGI
is not a qualified distribution, and may
(Form 1040, line 38; Form 1040A,
SIMPLE IRAs
be taxable.
line 22; or Form 1040NR, line 36).
Then, refigure it by:
Your participation in your employer’s
SIMPLE IRA plan does not prevent
Contributions. You can contribute to
1. Subtracting the following.
you from making contributions to a
a Roth IRA for 2005 only if your 2005
a. Roth IRA conversions included
traditional, SEP, or Roth IRA.
modified adjusted gross income (AGI)
on Form 1040, line 15b; Form 1040A,
for Roth IRA purposes is less than:
line 11b; or Form 1040NR, line 16b.
Roth IRAs
•
$10,000 if married filing separately
b. Minimum required distributions
A Roth IRA is similar to a traditional
and you lived with your spouse at any
from qualified retirement plans
IRA, but has the following features.
time in 2005,
(including IRAs) (for conversions
•
•
Contributions are never deductible.
$160,000 if married filing jointly or
only).
•
Contributions can be made after
qualifying widow(er), or
2. Adding the following.
•
the owner reaches age 70
1
/
.
$110,000 if single, head of
2
•
a. IRA deduction from Form 1040,
No minimum distributions are
household, or if married filing
line 32; Form 1040A, line 17; or Form
required during the Roth IRA owner’s
separately and you did not live with
1040NR, line 31.
lifetime.
your spouse at any time in 2005.
•
b. Student loan interest deduction
Qualified distributions are not
from Form 1040, line 33; Form
includible in income.
Use the Maximum Roth IRA
1040A, line 18; or Form 1040NR,
Qualified distribution. Generally, a
Contribution Worksheet below to
line 32.
qualified distribution is any
figure the maximum amount you can
c. Tuition and fees deduction from
distribution made:
contribute to a Roth IRA for 2005. If
Form 1040, line 34, or Form 1040A,
•
you are married filing jointly, complete
line 19.
On or after age 59
1
/
,
2
•
the worksheet separately for you and
d. Domestic production activities
Upon death,
•
your spouse.
deduction from Form 1040, line 35, or
Due to disability, or
•
Form 1040NR, line 33.
For qualified first-time homebuyer
e. Exclusion of interest from Form
expenses.
If you contributed too much,
!
8815, Exclusion of Interest From
see Recharacterizations on
Exception. Any distribution made
Series EE and I U.S. Savings Bonds
page 3.
CAUTION
during the 5-year period beginning
Issued After 1989.
f. Exclusion of employer-provided
Maximum Roth IRA Contribution Worksheet (keep for your records)
adoption benefits from Form 8839,
Qualified Adoption Expenses.
Caution: If married filing jointly and the combined taxable compensation (defined on
g. Foreign earned income
page 3) for you and your spouse is less than $8,000 ($8,500 if one spouse is 50 or
exclusion from Form 2555, Foreign
older at the end of 2005; $9,000 if both spouses are 50 or older at the end of 2005),
Earned Income, or Form 2555-EZ,
do not use this worksheet. Instead, see Pub. 590 for special rules.
Foreign Earned Income Exclusion.
1 If married filing jointly, enter $4,000 ($4,500 if age 50 or
h. Foreign housing exclusion or
older at the end of 2005). All others, enter the smaller of
deduction from Form 2555.
$4,000 ($4,500 if age 50 or older at the end of 2005) or your
taxable compensation (defined on page 3) . . . . . . . . . . . .
1
When figuring modified AGI
2 Enter your total contributions to traditional IRAs for 2005 . .
2
!
for Roth IRA purposes, you
3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
3
may have to refigure items
CAUTION
4 Enter: $160,000 if married filing jointly or qualifying
based on modified AGI, such as
widow(er); $10,000 if married filing separately and you lived
taxable social security benefits and
with your spouse at any time in 2005. All others, enter
passive activity losses allowed under
$110,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
the special allowance for rental real
5 Enter your modified AGI for Roth IRA purposes (see this
estate activities. See Can You
page) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Contribute to a Roth IRA? in Pub. 590
6 Subtract line 5 from line 4. If zero or less, stop here; you
for details.
may not contribute to a Roth IRA for 2005. See
Recharacterizations on page 3 if you made Roth IRA
Distributions. See the instructions
contributions for 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
for Part III that begin on page 7.
7 If line 4 above is $110,000, enter $15,000; otherwise, enter
$10,000. If line 6 is more than or equal to line 7, skip lines 8
Overall Contribution Limit for
and 9 and enter the amount from line 3 on line 10 . . . . . . .
7
Traditional and Roth IRAs
8 Divide line 6 by line 7 and enter the result as a decimal
If you are not married filing jointly,
(rounded to at least 3 places). If the result is 1.000 or more,
your limit on contributions to
enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
traditional and Roth IRAs is the
9 Multiply line 1 by line 8. If the result is not a multiple of $10,
smaller of $4,000 ($4,500 if age 50 or
increase it to the next multiple of $10 (for example, increase
older at the end of 2005) or your
$490.30 to $500). Enter the result, but not less than $200 . .
9
taxable compensation (defined on
10 Maximum 2005 Roth IRA Contribution. Enter the smaller
page 3). If you are married filing
of line 3 or line 9. See Recharacterizations on page 3 if
jointly, your contribution limit is
you contributed more than this amount to Roth IRAs for
generally $4,000 ($4,500 if age 50 or
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
older at the end of 2005) and your
-2-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial