Instructions For Form 8606 - Nondeductible Iras

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contribution (including a conversion) for

received incident to divorce. Also attach

Increase or decrease the amount on

2005 or an earlier year. However, see

a statement similar to the one

line 31 by any basis transferred or

Certain qualified distributions on page

explained in the last bulleted item under

received incident to divorce. Also attach

Line 7 on page 6.

a statement similar to the one

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Distributions that are incident to

explained in the last bulleted item under

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Increase the amount on line 29 by

divorce. The transfer of part or all of

Line 7 on page 6.

the amounts received as a military

your Roth IRA to your spouse under a

gratuity or SGLI payment that was

divorce or separation agreement is not

Line 33

rolled over to your Roth IRA.

taxable to you or your spouse.

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Enter on line 33, the smaller of line 32

Increase the amount on line 29 by

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

If, after considering the items above,

any amount received as qualified

you do not have an amount to enter on

25b. If any amounts on lines 25a and

settlement income in connection with

line 26, do not complete Part IV; your

25b are attributable to an in-plan Roth

the Exxon Valdez litigation and rolled

Roth IRA distribution(s) is not taxable.

rollover, do not include those amounts

over to your Roth IRA.

Instead, include your total Roth IRA

on line 33, unless you rolled over

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Increase the amount on line 29 by

distribution(s) on Form 1040, line 15a;

amounts from your designated Roth

any airline payments you rolled over to

Form 1040A, line 11a; or Form

account to your Roth IRA after the

your Roth IRA.

1040NR, line 16a.

in-plan Roth rollover.

Line 27

Line 30

Certain Distributions From

If you had a qualified first-time

Generally, there is an additional 10%

Designated Roth Accounts

homebuyer distribution from your Roth

tax on 2010 distributions from a Roth

If you received a distribution from your

IRA and you made a contribution

IRA that are shown on line 30. The

designated Roth account after making

(including a conversion) to a Roth IRA

additional tax is figured on Form 5329,

for 2005 or an earlier year, enter the

an in-plan Roth rollover (reported on

Part I. See the instructions for Form

amount of your qualified expenses on

Form 8606, Part III), you may have to

5329, line 1, for details and exceptions.

line 27, but do not enter more than

include the part of the distribution

$10,000.

allocable to the in-plan Roth rollover in

Line 31

income for 2010. See Accelerated

Note. If the rules under Certain

income inclusion below.

Figure the amount to enter on line 31

qualified distributions on page 7 apply,

as follows.

reduce the amount you enter on line 27

Exception. If you checked the box on

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

If you have never made a Roth IRA

line 24 and you are including the

25b. Do not enter an amount less than

conversion or rolled over an amount

in-plan Roth rollover in income in 2010,

zero.

from a qualified retirement plan to a

do not complete the worksheet below.

Roth IRA, enter -0- on line 31.

Line 29

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Accelerated income inclusion. If,

If you took a Roth IRA distribution

(other than an amount rolled over or

after September 27, 2010, you make an

Figure the amount to enter on line 29

as follows.

recharacterized or a returned

in-plan Roth rollover, you are allowed to

•

contribution) before 2010 in excess of

include the taxable amount in income in

If you did not take a Roth IRA

equal amounts in 2011 and 2012.

your basis in regular Roth IRA

distribution before 2010 (other than an

However, if you received distributions of

amount rolled over or recharacterized

contributions, use the chart on page 10

or a returned contribution), enter on line

any in-plan Roth rollover amounts, you

to figure the amount to enter on line 31.

29 the total of all your regular

may be required to include a portion of

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If you did not take such a distribution

contributions to Roth IRAs for 1998

the distribution allocable to the in-plan

before 2010, enter on line 31 the total

through 2010 (excluding rollovers from

Roth rollover in income in 2010.

of all your conversions to Roth IRAs

other Roth IRAs and any contributions

Complete the worksheet below only if

(other than amounts recharacterized).

that you had returned to you), adjusted

you completed lines 25a and 25b of

These amounts are shown on line 14c

for any recharacterizations.

Form 8606 for your in-plan Roth

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of your 1998, 1999, and 2000 Forms

If you did take such a distribution

rollover. Do not include any amounts

8606, line 16 of your 2001 through

before 2010, use the chart on page 9 to

you rolled over to your Roth IRA.

2009 Forms 8606, and line16 of your

figure the amount to enter.

2010 Form 8606 (only if you checked

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Increase the amount on line 29 by

Note. The amount of the distribution

the box on line 19). Also include on line

any amount rolled in from a designated

from your designated Roth account

31 any amounts rolled over from a

Roth account that is treated as

may be subject to an additional 10%

qualified retirement plan to a Roth IRA

investment in the contract. Do not

tax on early distributions. The additional

include any in-plan Roth rollovers

for 2008 and 2009 reported on your

tax is figured on Form 5329, Part I. See

entered on lines 25a and 25b.

Form 1040, 1040A, or Form 1040NR,

the instructions for Form 5329, line 1,

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and line 21 of your 2010 Form 8606

Increase or decrease the amount on

for details.

(only if you checked the box on line 24).

line 29 by any basis transferred or

Designated Roth Account Income Acceleration Worksheet

Keep for Your Records

Enter the amount from the box to the left of box 10 from your 2010 Form 1099-R . . . . . . . . . . . . . . . . . . . . . 1.

Enter the total of lines 25a and 25b of Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

Taxable amount. Enter the smaller of line 1 or line 2. Also include this amount on Form 8606, line 36, and on

Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

If you also have a taxable distribution from a Roth IRA reported on Form 8606, line 36, combine that amount with line 3 of this worksheet.

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Instructions for Form 8606 (2010)

Instructions For Form 8606 - Nondeductible Iras - 2010 Page 8

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