Instructions For Form 8606 - Nondeductible Iras

income over 4 years. See 1998 Roth

Ed IRA Worksheet (keep for your records)

IRA Conversions on page 1 and

If line 28 is more than line 29 on Form 8606, use this worksheet to figure the amount of

Pub. 590 for details.

taxable distributions you received from Ed IRAs in 2000. Also use this worksheet to figure

Line 23

your year-end basis in each Ed IRA.

Enter the excess, if any, of the sum

You should complete this worksheet to figure your basis, even if you are not

of the amounts from your 1998 Form

required to complete it. You may need to know your basis to figure the

8606, line 14c, and your 1999 Form

nontaxable part of future distributions.

8606, line 14c, over the total of the

following amounts.

Complete lines 1 through 17 separately for each of your Ed IRAs.

The amount, if any, of your 1998

Enter the amount contributed to this Ed IRA in 2000

Form 8606, line 22.

Enter your basis in this Ed IRA as of December 31, 1999. See

instructions

The smaller of line 23 or line 24 of

your 1998 Form 8606.

Add lines 1 and 2

Did you receive any distributions in 2000 from this Ed IRA?

The amount, if any, on your 1999

Form 8606, line 21.

Yes. Go to line 5.

No. Enter the amount from line 3 on line 17 and do not complete

The smaller of line 22 or line 25 of

the rest of this worksheet for this Ed IRA.

your 1999 Form 8606.

Enter the total amount of all distributions you received from this Ed

This is your basis in Roth IRA

IRA in 2000. Do not include rollovers

conversions for 1998 and 1999.

Enter the amount of qualified higher education expenses from Form

If you completed all of Part III of

8606, line 29, attributable to distributions from this Ed IRA

Form 8606 for 1999, you can find the

Subtract line 6 from line 5

amount to enter on line 23 by figuring

Enter the total value of this Ed IRA as of December 31, 2000, plus

the excess of line 25 of that Form

any outstanding rollovers. See instructions

8606 over line 22 of that Form 8606.

Add lines 5 and 8

This amount can also be found on

Divide line 3 by line 9 and enter the result as a decimal (rounded to

line 12 of the Roth IRA Basis

at least 3 places). Do not enter more than “1.000”

Worksheet on page 6 of your 1999

Multiply line 5 by line 10. This is the nontaxable portion of your

Instructions for Form 8606.

distributions from this Ed IRA

Note: If line 7 is zero, skip lines 12 through 15, enter -0- on line 16,

Additional 10% Tax

and go to line 17.

There generally is an additional 10%

Subtract line 11 from line 5

tax on 2000 distributions from a Roth

Did you check Yes on line 29 of the form?

IRA that are shown on line 19 if you

Yes. Enter the amount from line 12 on line 16 and go to line 17.

were under 59

at the time of the

No. Go to line 14.

distribution. The additional tax is

Divide line 6 by line 5 and enter the result as a decimal (rounded to

figured in Part I of Form 5329.

at least 3 places). Do not enter more than “1.000”

Multiply line 12 by line 14

Part IV—Distributions

Subtract line 15 from line 12. This is the amount of taxable

From Education (Ed) IRAs

distributions you received from this Ed IRA in 2000. Enter the

result here and include it on line 30 of Form 8606

If the total Ed IRA contributions

Subtract line 11 from line 3. This is your basis in this Ed IRA as of

made in 2000 on behalf of the

December 31, 2000

beneficiary are more than $500

CAUTION

(or more than the total amount

If the beneficiary reaches age 30

during any 12-month period). Also,

allowed to be contributed by all

or dies, the account balance generally

do not include contributions that were

contributors to the account, if less),

must be distributed to the beneficiary

distributed with the related earnings

the excess contributions (plus related

(or to the estate of the beneficiary)

(or less any loss) by the due date of

earnings) must be distributed by the

within 30 days. However, any balance

the beneficiary's tax return, including

due date (including extensions) of the

in an Ed IRA generally may be rolled

extensions (or by April 16, 2001, if the

beneficiary's tax return (or by April 16,

over to an Ed IRA of a family member

beneficiary is not required to file a tax

2001, if the beneficiary is not required

under age 30. (The same result

return). Do not deduct any loss that

to file a return). Otherwise, the

generally may be accomplished by

occurred. Report the total amount

beneficiary is subject to the excess

changing the beneficiary of the

withdrawn on line 15a and any related

contributions penalty. See Pub. 590

existing Ed IRA.) If a rollover is made

earnings on line 15b if filing Form

and Form 5329 for details, including

from one family member's Ed IRA to

1040; lines 11a and 11b if filing Form

how to figure the penalty.

another's, attach a statement to the

1040A; or lines 16a and 16b if filing

tax return of the beneficiary of the Ed

Form 1040NR. Withdrawn

Line 28

IRA from which the rollover was

contributions are treated as if they

Enter the total Ed IRA distributions

made. Indicate on the statement the

were never contributed for purposes

(withdrawals) received in 2000. Do

amount and date of the rollover, and

of figuring basis and therefore are not

not include amounts rolled over within

the name and SSN of the family

reported on Form 8606.

60 days (only one rollover is allowed

member to whose Ed IRA the rollover

Page 7

Instructions For Form 8606 - Nondeductible Iras - 2000 Page 7

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