Instructions For Form 8606 - Nondeductible Iras

your traditional, SEP, or SIMPLE IRA

amount of $30,000 on May 1, 2005,

Line 16

to your spouse under a divorce or

unrelated to Hurricane Katrina, Rita,

If you did not complete line 8, see the

separation agreement is not taxable

or Wilma. On October 15, 2005, you

instructions for that line. Then, enter

to you or your spouse. If this transfer

received a qualified hurricane

on line 16 the amount you would

results in a change in the basis of the

distribution (as the result of Hurricane

have entered on line 8 had you

traditional IRA of either spouse, both

Rita) from your traditional IRA in the

completed it.

spouses must file Form 8606 and

amount of $10,000. You would report

show the increase or decrease in the

total distributions of $40,000 on Form

Line 17

amount of basis on line 2. Attach a

8606, line 7. You would then

If you did not complete line 11, enter

statement explaining this adjustment.

complete lines 8 through 14 as

on line 17 the amount from line 2 (or

Include in the statement the character

instructed. Form 8606, line 15a,

the amount you would have entered

of the amounts in the traditional IRA,

shows an amount of $36,000. You

on line 2 if you had completed that

such as the amount attributable to

would enter $9,000 ($36,000 x

line) plus any contributions included

nondeductible contributions. Also,

$10,000/$40,000) on line 15b. You

on line 1 that you made before the

include the name and social security

would also enter $9,000 on Form

conversion.

number of the other spouse.

8915, line 13.

•

Qualified distributions you repaid

Part III—Distributions

before March 1, 2006, if the

Line 15c

distributions were to be used to

From Roth IRAs

If you were under age 59

at the

purchase or construct a main home in

time you received distributions from

Complete Part III to figure the taxable

the Hurricane Katrina, Rita, or Wilma

your traditional, SEP, or SIMPLE IRA,

part, if any, of your 2005 Roth IRA

disaster area, but that home was not

there generally is an additional 10%

distributions.

purchased or constructed because of

tax on the portion of the distribution

Hurricane Katrina, Rita, or Wilma.

Line 19

that is included in income (25% for a

Qualified hurricane distributions.

distribution from a SIMPLE IRA

Do not include on line 19 any of the

Be sure to include on line 7, all

during the first 2 years). See the

following.

qualified hurricane distributions you

•

Instructions for Form 1040, line 60.

Distributions that you rolled over,

received, even if they were later

including distributions made in 2005

repaid.

and rolled over after December 31,

Part II—2005

2005 (outstanding rollovers).

Line 8

•

Conversions From

Recharacterizations.

If, in 2005, you converted any

•

Distributions that are a return of

Traditional, SEP, or

amounts from traditional, SEP, or

contributions under Return of IRA

SIMPLE IRAs to a Roth IRA, enter on

SIMPLE IRAs to Roth

Contributions on page 4.

line 8 the net amount you converted.

•

Distributions made on or after age

IRAs

To figure that amount, subtract from

if you made a contribution

the total amount converted in 2005

Complete Part II if you converted part

(including a conversion) for 1998,

any portion that you recharacterized

or all of your traditional, SEP, or

1999, or 2000.

back to traditional, SEP, or SIMPLE

•

SIMPLE IRAs to a Roth IRA in 2005,

Distributions made upon death or

IRAs in 2005 or 2006 (see

excluding any portion you

due to disability if you made a

Recharacterizations that begins on

contribution (including a conversion)

recharacterized. See item 1 under

page 3). Do not take into account

for 1998, 1999, or 2000.

Reporting recharacterizations on

related earnings that were transferred

•

Distributions that are incident to

page 3 for details.

with the recharacterized amount or

divorce. The transfer of part or all of

any loss that occurred while the

Limit on number of conversions. If

your Roth IRA to your spouse under a

amount was in the Roth IRA. See

you converted an amount from a

divorce or separation agreement is

item 1 under Reporting

traditional, SEP, or SIMPLE IRA to a

not taxable to you or your spouse.

recharacterizations on page 3 for

•

Roth IRA in 2005 and then

Qualified distributions you repaid

details.

recharacterized the amount back to a

before March 1, 2006, if the

traditional, SEP, or SIMPLE IRA, you

distributions were to be used to

Line 15b

cannot reconvert that amount until the

purchase or construct a main home in

If all your distributions are qualified

later of January 1, 2006, or 30 days

the Hurricane Katrina, Rita, or Wilma

hurricane distributions, enter the

after the recharacterization. See Pub.

disaster area, but that home was not

amount from line 15a on line 15b. If

590 for details.

purchased or constructed because of

you have distributions unrelated to

Hurricane Katrina, Rita, or Wilma.

Hurricanes Katrina, Rita, and Wilma,

You cannot convert any

Qualified hurricane distributions.

as well as qualified hurricane

amount to Roth IRAs in 2005

Be sure to include on line 19, all

distributions, you will need to multiply

if (a) your modified AGI for

CAUTION

qualified hurricane distributions you

the amount on line 15a by a fraction.

Roth IRA purposes (see page 2) is

received, even if they were later

The numerator of the fraction is your

more than $100,000, or (b) your filing

repaid.

total qualified hurricane distributions

status is married filing separately and

and the denominator is the amount

you lived with your spouse at any

If, after considering the items

from Form 8606, line 7. See the

time in 2005. If you erroneously made

above, you do not have an amount to

example below.

a conversion, you must

enter on line 19, do not complete Part

recharacterize the converted amount.

Example. You received a

III; your Roth IRA distribution(s) is not

See Recharacterizations that begins

distribution from your traditional IRA

taxable. Instead, include your total

on page 3.

(that you did not roll over) in the

Roth IRA distribution(s) on Form

-7-

Instructions For Form 8606 - Nondeductible Iras - 2005 Page 7

Related Articles

Related forms

Related Categories