Instructions For Form 8606 - Nondeductible Iras

•

Due to disability, or

If you contributed too much,

Foreign earned income

•

see Recharacterizations on

exclusion from Form 2555, Foreign

For qualified first-time homebuyer

page 3.

Earned Income, or Form 2555-EZ,

expenses.

CAUTION

Foreign Earned Income Exclusion.

•

Modified AGI for Roth IRA

Exception. Any distribution made

Foreign housing exclusion or

purposes. First, figure your AGI

during the 5-year period beginning

deduction from Form 2555.

(Form 1040, line 35; Form 1040A,

with the first year for which you made

line 22; or Form 1040NR, line 34).

a Roth IRA contribution or conversion

When figuring modified AGI

Then, refigure it by:

is not a qualified distribution, and

for Roth IRA purposes, you

1. Subtracting any amount due to

may be taxable.

may have to refigure items

CAUTION

Roth IRA conversions included on

based on modified AGI, such as

Contributions. You can contribute to

Form 1040, line 15b; Form 1040A,

taxable social security benefits and

a Roth IRA for 2003 only if your 2003

line 11b; or Form 1040NR, line 16b;

passive activity losses allowed under

modified adjusted gross income (AGI)

and

the special allowance for rental real

for Roth IRA purposes is less than:

2. Adding the total of the following.

estate activities. See Can You

•

IRA deduction from Form 1040,

$10,000 if married filing separately

Contribute to a Roth IRA? in Pub.

line 24; Form 1040A, line 17; or Form

and you lived with your spouse at any

590 for details.

1040NR, line 25.

time in 2003,

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Distributions. See the instructions

•

Student loan interest deduction

$160,000 if married filing jointly or

for Part III beginning on page 7.

from Form 1040, line 25; Form

qualifying widow(er), or

1040A, line 18; or Form 1040NR, line

•

$110,000 if single, head of

Overall Contribution Limit for

26.

household, or if married filing

•

Traditional and Roth IRAs

Tuition and fees deduction from

separately and you did not live with

Form 1040, line 26, or Form 1040A,

If you are not married filing jointly,

your spouse at any time in 2003.

line 19.

your limit on contributions to

•

Use the Maximum Roth IRA

Exclusion of interest from Form

traditional and Roth IRAs is the

Contribution Worksheet below to

8815, Exclusion of Interest From

smaller of $3,000 ($3,500 if age 50

figure the maximum amount you can

Series EE and I U.S. Savings Bonds

or older at the end of 2003) or your

contribute to a Roth IRA for 2003. If

Issued After 1989.

taxable compensation (defined

•

you are married filing jointly, complete

Exclusion of employer-provided

below). If you are married filing jointly,

the worksheet separately for you and

adoption benefits from Form 8839,

your contribution limit is generally

your spouse.

Qualified Adoption Expenses.

$3,000 ($3,500 if age 50 or older at

the end of 2003) and your spouse’s

Maximum Roth IRA Contribution Worksheet (keep for your records)

contribution limit is $3,000 ($3,500 if

age 50 or older at the end of 2003) as

Caution: If married filing jointly and the combined taxable compensation (defined on

well. But if the combined taxable

this page) for you and your spouse is less than $6,000 ($6,500 if one spouse is 50 or

compensation of both you and your

older at the end of 2003; $7,000 if both spouses are 50 or older at the end of 2003),

spouse is less than $6,000 ($6,500 if

do not use this worksheet. Instead, see Pub. 590 for special rules.

one spouse is 50 or older at the end

1 If married filing jointly, enter $3,000 ($3,500 if age 50 or

of 2003; $7,000 if both spouses are

older at the end of 2003). All others, enter the smaller of

50 or older at the end of 2003), see

$3,000 ($3,500 if age 50 or older at the end of 2003) or your

Pub. 590 for special rules. This limit

taxable compensation (defined on this page) . . . . . . . . . . .

does not apply to employer

2 Enter your total contributions to traditional IRAs for 2003 . .

contributions to a SEP or SIMPLE

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .

IRA.

4 Enter: $160,000 if married filing jointly or qualifying

widow(er); $10,000 if married filing separately and you lived

The amount you may

with your spouse at any time in 2003. All others, enter

contribute to a Roth IRA may

$110,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

also be limited by your

CAUTION

5 Enter your modified AGI for Roth IRA purposes (see above)

modified AGI (see Contributions and

6 Subtract line 5 from line 4. If zero or less, stop here; you

the Maximum Roth IRA

may not contribute to a Roth IRA for 2003. See

Contribution Worksheet on this

Recharacterizations on page 3 if you made Roth IRA

page).

contributions for 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxable compensation includes

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

the following.

•

and 9 and enter the amount from line 3 on line 10 . . . . . . .

Wages, salaries, tips, etc. If you

8 Divide line 6 by line 7 and enter the result as a decimal

received a distribution from a

(rounded to at least 3 places). If the result is 1.000 or more,

nonqualified deferred compensation

enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

plan or nongovernmental section 457

9 Multiply line 1 by line 8. If the result is not a multiple of $10,

plan that is included in box 1 of your

increase it to the next multiple of $10 (for example, increase

Form W-2, do not include that

$490.30 to $500). Enter the result, but not less than $200 . .

distribution in taxable compensation.

10 Maximum 2003 Roth IRA Contribution. Enter the smaller

The distribution should be shown in

of line 3 or line 9. See Recharacterizations on page 3 if

box 11 of your Form W-2. If it is not,

you contributed more than this amount to Roth IRAs for

contact your employer for the amount

2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

of the distribution.

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Instructions For Form 8606 - Nondeductible Iras - 2003 Page 2

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