Instructions For Form 8606 - Nondeductible Iras

any contributions included on line 1 that

designated Roth account within the

This election cannot be made or

you made before the conversion.

same plan.

changed after the due date (including

extensions) for the spouse’s tax return

Line 19

If you have both a rollover to a

which includes the date of death.

Roth IRA and an in-plan Roth

You can include the entire taxable

rollover as described above, you

Part IV—Distributions

CAUTION

amount on line 18 in your income for

must complete and file a separate Form

2010 or spread it over 2 years (2011

From Roth IRAs (and

8606, Part III, to report each rollover.

and 2012). If you elect to include the

Certain Distributions

entire amount in income for 2010,

Line 21

complete line 19. Otherwise, skip line

from Designated Roth

Rollovers to a Roth IRA. Enter on

19 and complete lines 20a and 20b.

line 21 the net amount you rolled over

Any amount on line 20a must be

Accounts)

from qualified retirement plans to a

included in your income for 2011 and

Roth IRA in 2010. To figure the net

any amount on line 20b must be

Complete Part IV, if one or both of the

amount, subtract from the total amount

included in your income for 2012.

following apply.

•

rolled over in 2010 any portion that you

Figure the taxable part, if any, of your

You cannot change your treatment

recharacterized to a traditional IRA in

2010 Roth IRA distributions.

of the conversion after the due date

•

2010 or 2011 (see Recharacterizations

Figure the taxable part, if any, of your

(including extensions) for your tax

that begins on page 3). Do not take into

2010 designated Roth account

return.

account related earnings that were

distributions allocable to an in-plan

Note. If you check the box on line 19,

transferred with the recharacterized

Roth rollover. Go to Certain

you must also check the box on line 24

amount or any loss that occurred while

Distributions from Designated Roth

for a rollover to a Roth IRA.

the amount was in the Roth IRA. See

Accounts on page 8, to see if you need

If the taxpayer died during 2010 after

item 4 under Reporting

to complete the Designated Roth

making a conversion, the taxable

recharacterizations that begins on page

Account Income Acceleration

amount of the conversion may not be

3 for details.

Worksheet on page 8. Do not complete

spread over 2 years (2011 and 2012).

lines 26 through 35 of Form 8606.

In-plan Roth rollovers. Enter on line

The tax return of the deceased

21 the amount of your in-plan Roth

Accelerated income inclusion. If, in

taxpayer must show (a) the entire

rollovers. This should be the amount in

2010, you converted amounts from

taxable amount in 2010, or (b) a

box 1 of Form 1099-R. Unlike

traditional, SEP, or SIMPLE IRAs to

recharacterization (see page 3) of the

conversions or rollovers to Roth IRAs,

your Roth IRA, or you rolled over

conversion.

you cannot recharacterize any amount

amounts from a qualified retirement

Exception for surviving spouse. A

of an in-plan Roth rollover.

plan to a Roth IRA, you are allowed to

surviving spouse who is the sole

include the taxable amount in income in

Line 22

beneficiary of his or her spouse’s Roth

equal amounts in 2011 and 2012.

IRA may elect to treat the taxable

However, if you received distributions of

Enter on line 22 any contributions that

amount in the same way as the

conversion or rollover amounts in 2010,

were taxable to you when made. This

deceased taxpayer. This election

you may be required to include a

amount is your investment or basis in

cannot be made or changed after the

portion of the distribution allocable to

the contract (after-tax contributions).

due date (including extensions) for the

the conversion or rollover in income in

This amount is usually shown in box 5

spouse’s tax return which includes the

2010.

of Form 1099-R.

date of death.

Line 26

Line 24

Part III—2010 Rollovers

You can include the entire taxable

Certain qualified distributions. You

From Qualified

amount on line 23 in your income for

have to include part or all of your

2010 or spread it over 2 years (2011

qualified distributions on line 26 if you

Retirement Plans to Roth

and 2012). If you elect to include the

converted or rolled over amounts to a

entire amount in income for 2010,

IRAs and In-plan

Roth IRA in 2010, and you are

complete line 24. Otherwise, skip line

including the taxable amount in income

Rollovers to Designated

24 and complete lines 25a and 25b.

in 2011 and 2012. Enter on line 26 the

Any amount on line 25a must be

lesser of your qualified distributions or

Roth Accounts

included in your income for 2011 and

the total of lines 20a, 20b, 25a, and

any amount on line 25b must be

25b. This also includes an in-plan Roth

Complete Part III if you rolled over an

included in your income for 2012.

rollover reported on lines 25a and 25b,

amount described below. If both of the

following apply, you must complete

that you subsequently rolled over to a

You cannot change your treatment

Roth IRA in 2010. See bulleted items 4

and file a separate Form 8606, Part III,

of the rollover after the due date

and 6 below for qualified distributions.

to report each rollover.

(including extensions) for your tax

•

You rolled over part or all of your

return.

Do not include on line 26 any of the

qualified retirement plans (other than

following.

Note. If you checked the box on line

•

designated Roth accounts) to a Roth

Distributions that you rolled over,

19, you must also check the box on line

IRA in 2010, excluding any portion you

including distributions made in 2010

24 for a rollover to a Roth IRA.

recharacterized. See item 4 under

and rolled over after December 31,

If the taxpayer died during 2010 after

Reporting recharacterizations starting

2010 (outstanding rollovers).

making a rollover, the taxable amount

on page 3 for details.

•

Recharacterizations.

of the rollover may not be spread over

•

For this purpose, a qualified

Distributions that are a return of

2 years (2011 and 2012). The tax

retirement plan includes a: qualified

contributions under Return of IRA

return of the deceased taxpayer must

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

Contributions on page 4.

show (a) the entire taxable amount in

•

qualified employee annuity;

Distributions made on or after age

2010, or (b) a recharacterization (see

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

if you made a contribution

page 3) of the rollover.

an eligible state or local government

(including a conversion) for 2005 or an

section 457 plan.

Exception for surviving spouse. A

earlier year. However, see Certain

•

You made an in-plan Roth rollover

surviving spouse who is the sole

qualified distributions above.

•

after September 27, 2010, and before

beneficiary of his or her spouse’s Roth

A one-time distribution to fund an

January 1, 2011. An in-plan Roth

IRA or designated Roth account may

HSA. For details, see Pub. 969.

•

rollover is an amount from your 401(k)

elect to treat the taxable amount in the

Distributions made upon death or

or 403(b) plan rolled over to a

same way as the deceased taxpayer.

due to disability if you made a

-7-

Instructions for Form 8606 (2010)

Instructions For Form 8606 - Nondeductible Iras - 2010 Page 7

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