Instructions For Form 8606 - Nondeductible Iras

Basis in Roth IRA Conversions — Line 24

Paperwork Reduction Act Notice.

IF the most recent year

THEN enter on Form 8606, line PLUS the sum of the

We ask for the information on this

prior to 2005 in which

24, this amount...

amounts on the

form to carry out the Internal

you had a distribution*

following lines...

Revenue laws of the United States.

in excess of your basis

You are required to give us the

in contributions was...

information. We need it to ensure that

you are complying with these laws

2004

The excess, if any, of your 2004

Line 16 of your 2005

and to allow us to figure and collect

(your 2004 Form 8606,

Form 8606, line 24, over line 23**

Form 8606

the right amount of tax.

line 22, was less than line

of that Form 8606.

19 of that Form 8606)

You are not required to provide the

information requested on a form that

2003

The excess, if any, of your 2003

Line 16 of your 2004

is subject to the paperwork reduction

(you had an amount on

Form 8606, line 22, over line 21

and 2005 Form 8606

act unless the form displays a valid

your 2003 Form 8606, line

of that Form 8606.

OMB control number. Books or

21)

records relating to a form or its

2002

instructions must be retained as long

The excess, if any, of your 2002

Line 16 of your 2003

(you had an amount on

as their contents may become

Form 8606, line 22, over

through 2005

your 2002 Form 8606, line

material in the administration of any

line 21 of that Form 8606

Forms 8606

21)

Internal Revenue law. Generally, tax

returns and return information are

2001

The excess, if any, of your 2001

Line 16 of your 2002

confidential, as required by section

(you had an amount on

Form 8606, line 22, over

through 2005

6103.

your 2001 Form 8606, line

line 21 of that Form 8606

Forms 8606

21)

The average time and expenses

required to complete and file this form

2000

The excess, if any, of your 2000

Line 16 of your 2001

will vary depending on individual

(you had an amount on

Form 8606, line 25, over

through 2005 Forms

circumstances. For the estimated

your 2000 Form 8606,

line 19 of that Form 8606

8606

averages, see the instructions for

line 19)

your income tax return.

Line 14c of your 2000

1999

If you have suggestions for making

The excess, if any, of your 1999

Form 8606 and line

(you had an amount on

this form simpler, we would be happy

Form 8606, line 25, over

16 of your 2001

your 1999 Form 8606,

to hear from you. See the instructions

line 19 of that Form 8606

through 2005

line 19)

for your income tax return.

Forms 8606

Line 14c of your 1999

1998

The excess, if any, of your 1998 and 2000 Forms 8606

(you had an amount on

Form 8606, line 14c, over

and line 16 of your

your 1998 Form 8606,

line 20 of that Form 8606

2001 through 2005

line 20)

Forms 8606

Line 14c of your 1998,

1999, and 2000

Did not have such a

The amount from your 2005 Form Forms 8606 and line

distribution in excess of

8606, line 16

16 of your 2001

your basis in contributions

through 2004 Forms

8606

*Excluding rollovers, recharacterizations, and contributions that you had returned to

you.

**Refigure line 23 without taking into account any amount entered on Form 8606,

line 20.

Example. You received a

have no first-time homebuyer

distribution from your Roth IRA (that

expenses reported on line 20, so you

you did not roll over) in the amount of

would also enter $40,000 on line 21.

$30,000 on May 1, 2005, unrelated to

You would then complete lines 22

Hurricane Katrina, Rita, or Wilma. On

through 24 as instructed. Form 8606,

October 30, 2005, you received a

line 25a, shows an amount of

qualified hurricane distribution (as the

$20,000. You would enter $5,000

result of Hurricane Wilma) from your

($20,000 x $10,000/$40,000) on line

Roth IRA in the amount of $10,000.

25b. You would also enter $5,000 on

You would report total distributions of

Form 8915, line 14.

$40,000 on Form 8606, line 19. You

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Instructions For Form 8606 - Nondeductible Iras - 2005 Page 9

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