Instructions For Form 8606 - Nondeductible Iras

from the appropriate lines of that

the excess, if any, of the amount on line

amount you would otherwise enter on

worksheet.

1 over the contributions you actually

line 6. If the result is zero or less, enter

made in 2008.

-0-.

If you did not have any deductible

Example. You made contributions

contributions, you can make

Example. You received a $30,000

for 2008 of $2,000 in May 2008 and

nondeductible contributions up to your

qualified disaster recovery assistance

$2,000 in January 2009, of which

distribution on August 18, 2008, from

contribution limit. Enter on line 1 of

$3,000 are deductible and $1,000 are

Form 8606 your nondeductible

your traditional IRA. On December 15,

nondeductible. You choose $1,000 of

contributions.

2008, you made a repayment of

your contribution in 2008 to be

$15,000 to your traditional IRA. The

Include on line 1 any repayment of a

nondeductible. You enter the $1,000 on

value of all your traditional, SEP, and

qualified reservist distribution. Also,

line 1, but not line 4, and it becomes

SIMPLE IRAs as of December 31,

include any repayment of a qualified

part of your basis for 2008.

2008, was $50,000. You had no

hurricane, disaster recovery assistance,

outstanding rollovers. You would enter

Although the contributions to

or recovery assistance distribution that

$35,000 ($50,000 minus the $15,000

traditional IRAs for 2008 that you made

is attributable to previously

repayment) on line 6.

from January 1, 2009, through April 15,

nondeductible contributions.

2009, can be treated as nondeductible,

Line 7

Do not include on line 1 contributions

they are not included in figuring the

that you had returned to you with the

nontaxable part of any distributions you

related earnings (or less any loss). See

If you received a distribution in

received in 2008.

page 4.

2008 from a traditional, SEP, or

Line 6

SIMPLE IRA, and you also

CAUTION

Line 2

made contributions for 2008 to a

Enter the total value of all your

If this is the first year you are required

traditional IRA that may not be fully

traditional, SEP, and SIMPLE IRAs as

deductible because of the income

to file Form 8606, enter -0-. Otherwise,

of December 31, 2008, plus any

limits, you must make a special

use the chart below to find the amount

outstanding rollovers. A statement

to enter on line 2.

computation before completing the rest

should be sent to you by January 31,

of this form. For details, including how

2009, showing the value of each IRA

However, you may need to enter an

to complete Form 8606, see Are

on December 31, 2008. However, if you

amount other than -0- or adjust the

Distributions Taxable? in chapter 1 of

recharacterized any amounts, enter on

amount from the chart if your basis

Pub. 590.

line 6 the total value taking into account

changed because of any of the

all recharacterizations, including

following.

Do not include any of the following

•

recharacterizations made after

You had a return of excess traditional

on line 7.

•

December 31, 2008.

IRA contributions (see page 5).

Distributions that you converted to a

•

Incident to divorce, you transferred or

For line 6, a rollover is a tax-free

Roth IRA.

•

received part or all of a traditional IRA

distribution from one traditional, SEP, or

Recharacterizations.

•

SIMPLE IRA that is contributed to

(see the next to last bulleted item under

Distributions that you rolled over by

Line 7 that begins on this page).

another traditional, SEP, or SIMPLE

December 31, 2008, and any

•

You rolled over any nontaxable

IRA. The rollover must be completed

outstanding rollovers included on

within 60 days of receiving the

portion of your qualified employer plan

line 6.

•

to a traditional or SEP IRA. Include the

distribution from the first IRA. An

Distributions you rolled over to a

nontaxable portion on line 2.

outstanding rollover is any amount

qualified employer plan.

•

distributed in 2008 after November 1,

A one-time distribution to fund an

IF the last Form

THEN enter on line

2008, that was rolled over in 2009, but

HSA. For details, see Pub. 969, Health

8606 you filed was 2...

within the 60-day rollover period.

Savings Accounts and Other

for...

Tax-Favored Health Plans.

The IRS may waive the 60-day

•

Qualified charitable distributions. For

requirement if failing to waive it would

2007, 2006, 2005,

The amount from

details, see the instructions for Form

be against equity or good conscience,

2004, 2003, 2002, or line 14 of that Form

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

such as situations where a casualty,

2001

8606

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

disaster, or other events beyond your

A year after 1992

The amount from

lines 16a and 16b.

reasonable control prevented you from

•

and before 2001

line 12 of that Form

Distributions that are treated as a

meeting the 60-day requirement. Also,

8606

return of contributions under Return of

the 60-day period may be extended if

IRA Contributions on page 4.

A year after 1988

The amount from

you had a frozen deposit. See Pub. 590

•

Distributions that are treated as a

and before 1993

line 14 of that Form

for details.

return of excess contributions under

8606

Note. Do not include a rollover from a

Return of Excess Traditional IRA

traditional or SEP IRA to a qualified

1988

The total of the

Contributions on page 5.

employer plan even if it was an

•

amounts on lines 7

Distributions of excess contributions

outstanding rollover.

and 16 of that Form

due to incorrect rollover information. If

8606

Also include on line 6, any qualified

an excess contribution in your

distributions you repaid before March 4,

traditional IRA is the result of a rollover

1987

The total of the

2009, if the distributions were to be

amounts on lines 4

from a qualified retirement plan and the

used to purchase or construct a main

and 13 of that Form

excess occurred because the

home in a Midwestern disaster area,

8606

information the plan was required to

but the home was not purchased or

give you was incorrect, the distribution

constructed because of the severe

of the excess contribution is not

Line 4

storms, tornadoes, or flooding. See

taxable. Attach a statement to your

Pub. 4492-B for more information.

If you made contributions to traditional

return explaining the distribution and

IRAs for 2008 in 2008 and 2009 and

Repayments of qualified disaster

include the amount of the distribution

you have both deductible and

recovery assistance distributions

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

nondeductible contributions, you can

and recovery assistance

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

choose to treat the contributions made

distributions. Subtract the total

See Pub. 590 for more details.

•

in 2008 first as nondeductible

amount of repayments of qualified

Distributions that are incident to

contributions and then as deductible

disaster recovery assistance

divorce. The transfer of part or all of

contributions, or vice versa. But the

distributions or recovery assistance

your traditional, SEP, or SIMPLE IRA to

amount on line 4 cannot be less than

distributions you made in 2008 from the

your spouse under a divorce or

-6-

Instructions For Form 8606 - Nondeductible Iras - 2008 Page 6

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