Instructions For Form 8606 - Nondeductible Iras

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from January 1, 2008, through April 15,

A one-time distribution to fund an

included in income (25% for a

2008, can be treated as nondeductible,

HSA. For details, see Pub. 969.

distribution from a SIMPLE IRA during

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they are not included in figuring the

Qualified charitable distributions. For

the first 2 years). See the Instructions

nontaxable part of any distributions you

details, see the instructions for Form

for Form 1040, line 60, or the

received in 2007.

1040, lines 15a and 15b; Form 1040A,

Instructions for Form 1040NR, line 55.

lines 11a and 11b; or Form 1040NR,

Line 6

Part II—2007

lines 16a and 16b.

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Distributions that are treated as a

Enter the total value of all your

Conversions From

return of contributions under Return of

traditional, SEP, and SIMPLE IRAs as

IRA Contributions on page 4.

Traditional, SEP, or

of December 31, 2007, plus any

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Distributions that are treated as a

outstanding rollovers. A statement

SIMPLE IRAs to Roth

return of excess contributions under

should be sent to you by January 31,

Return of Excess Traditional IRA

2008, showing the value of each IRA

IRAs

Contributions on page 4.

on December 31, 2007. However, if you

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Distributions of excess contributions

Complete Part II if you converted part

recharacterized any amounts, enter on

due to incorrect rollover information. If

or all of your traditional, SEP, or

line 6 the total value taking into account

SIMPLE IRAs to a Roth IRA in 2007,

an excess contribution in your

all recharacterizations, including

traditional IRA is the result of a rollover

excluding any portion you

recharacterizations made after

from a qualified retirement plan and the

recharacterized. See item 1 under

December 31, 2007.

Reporting recharacterizations on

excess occurred because the

For line 6, a rollover is a tax-free

information the plan was required to

page 3 for details.

distribution from one traditional, SEP, or

give you was incorrect, the distribution

Limit on number of conversions. If

SIMPLE IRA that is contributed to

of the excess contribution is not

you converted an amount from a

another traditional, SEP, or SIMPLE

taxable. Attach a statement to your

traditional, SEP, or SIMPLE IRA to a

IRA. The rollover must be completed

return explaining the distribution and

Roth IRA in 2007 and then

within 60 days of receiving the

include the amount of the distribution

recharacterized the amount back to a

distribution from the first IRA. An

on Form 1040, line 15a; Form 1040A,

traditional, SEP, or SIMPLE IRA, you

outstanding rollover is any amount

line 11a; or Form 1040NR, line 16a.

cannot reconvert that amount until the

distributed after November 1, 2007, that

See Pub. 590 for more details.

later of January 1, 2008, or 30 days

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was rolled over in 2008, but within the

Distributions that are incident to

after the recharacterization. See Pub.

60-day rollover period.

divorce. The transfer of part or all of

590 for details.

your traditional, SEP, or SIMPLE IRA to

The IRS may waive the 60-day

You cannot convert any amount

your spouse under a divorce or

requirement if failing to waive it would

to Roth IRAs in 2007 if (a) your

separation agreement is not taxable to

be against equity or good conscience,

modified AGI for Roth IRA

you or your spouse. If this transfer

CAUTION

such as situations where a casualty,

purposes (see page 2) is more than

results in a change in the basis of the

disaster, or other events beyond your

$100,000, or (b) your filing status is

traditional IRA of either spouse, both

reasonable control prevented you from

married filing separately and you lived

spouses must file Form 8606 and show

meeting the 60-day requirement. Also,

with your spouse at any time in 2007. If

the increase or decrease in the amount

the 60-day period may be extended if

you erroneously made a conversion,

of basis on line 2. Attach a statement

you had a frozen deposit. See Pub. 590

you must recharacterize the converted

explaining this adjustment. Include in

for details.

amount. See Recharacterizations that

the statement the character of the

Note. Do not include a rollover from a

begins on page 3.

amounts in the traditional IRA, such as

traditional or SEP IRA to a qualified

the amount attributable to

Line 16

employer plan even if it was an

nondeductible contributions. Also,

outstanding rollover.

If you did not complete line 8, see the

include the name and social security

instructions for that line. Then, enter on

number of the other spouse.

Line 7

line 16 the amount you would have

Line 8

entered on line 8 had you completed it.

If you received a distribution in

If, in 2007, you converted any amounts

Line 17

2007 from a traditional, SEP, or

from traditional, SEP, or SIMPLE IRAs

SIMPLE IRA, and you also

CAUTION

If you did not complete line 11, enter on

to a Roth IRA, enter on line 8 the net

made contributions for 2007 to a

line 17 the amount from line 2 (or the

amount you converted. To figure that

traditional IRA that may not be fully

amount you would have entered on line

amount, subtract from the total amount

deductible because of the income

2 if you had completed that line) plus

converted in 2007 any portion that you

limits, you must make a special

any contributions included on line 1 that

recharacterized back to traditional,

computation before completing the rest

you made before the conversion.

SEP, or SIMPLE IRAs in 2007 or 2008

of this form. For details, including how

(see Recharacterizations that begins on

to complete Form 8606, see Are

Part III—Distributions

page 3). Do not take into account

Distributions Taxable? in chapter 1 of

related earnings that were transferred

From Roth IRAs

Pub. 590.

with the recharacterized amount or any

loss that occurred while the amount

Complete Part III to figure the taxable

Do not include any of the following

was in the Roth IRA. See item 1 under

part, if any, of your 2007 Roth IRA

on line 7.

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Reporting recharacterizations on

distributions.

Distributions that you converted to a

page 3 for details.

Roth IRA.

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Line 19

Recharacterizations.

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Line 15

Distributions that you rolled over by

Do not include on line 19 any of the

December 31, 2007, and any

If you were under age 59

at the time

following.

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outstanding rollovers included on

you received distributions from your

Distributions that you rolled over,

line 6.

traditional, SEP, or SIMPLE IRA, there

including distributions made in 2007

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Distributions you rolled over to a

generally is an additional 10% tax on

and rolled over after December 31,

qualified employer plan.

the portion of the distribution that is

2007 (outstanding rollovers).

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Instructions For Form 8606 - Nondeductible Iras - 2007 Page 6

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