Instructions For Form 8606 - Nondeductible Iras

separation agreement is not taxable to

tornadoes, or flooding in the

2 if you had completed that line) plus

you or your spouse. If this transfer

Midwestern disaster areas. On August

any contributions included on line 1 that

results in a change in the basis of the

18, 2008, your received a qualified

you made before the conversion.

traditional IRA of either spouse, both

disaster recovery assistance

spouses must file Form 8606 and show

distribution (as a result of the severe

Part III—Distributions

the increase or decrease in the amount

storms, tornadoes, or flooding in a

From Roth IRAs

of basis on line 2. Attach a statement

Midwestern disaster area) from your

explaining this adjustment. Include in

traditional IRA in the amount of

Complete Part III to figure the taxable

the statement the character of the

$10,000. You would report $40,000 on

part, if any, of your 2008 Roth IRA

amounts in the traditional IRA, such as

Form 8606, line 7. You would then

distributions.

the amount attributable to

complete lines 8 through 14 as

nondeductible contributions. Also,

instructed. Form 8606, line 15a shows

Line 19

include the name and social security

an amount of $36,000. You would enter

Do not include on line 19 any of the

number of the other spouse.

$9,000 ($36,000 x $10,000/$40,000) on

following.

•

Qualified distributions you repaid

line 15b. You would also enter $9,000

•

Distributions that you rolled over,

before March 4, 2009, if the

on Form 8930, line 13.

including distributions made in 2008

distributions were to be used to

and rolled over after December 31,

Line 15c

purchase or construct a main home in a

2008 (outstanding rollovers).

Midwestern disaster area, but the home

If you were under age 59

at the time

•

Recharacterizations.

was not purchased or constructed

you received distributions from your

•

Distributions that are a return of

because of the severe storms,

traditional, SEP, or SIMPLE IRA, there

contributions under Return of IRA

tornadoes, or flooding. See Pub.

generally is an additional 10% tax on

Contributions on page 4.

4492-B for more information.

the portion of the distribution that is

•

Distributions made on or after age

included in income (25% for a

Qualified disaster recovery

if you made a contribution

distribution from a SIMPLE IRA during

assistance distributions and

(including a conversion) for 2003 or an

the first 2 years). See the Instructions

qualified recovery assistance

earlier year.

for Form 1040, line 59, or the

•

distributions. Be sure to include on

A one-time distribution to fund an

Instructions for Form 1040NR, line 54.

line 7, all qualified disaster recovery

HSA. For details, see Pub. 969.

•

assistance distributions and all recovery

Qualified charitable contributions. For

Part II—2008

assistance distributions you received,

details, see the instructions for Form

even if they were later repaid.

Conversions From

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

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

Line 8

Traditional, SEP, or

lines 16a and 16b.

•

If, in 2008, you converted any amounts

Distributions made upon death or

SIMPLE IRAs to Roth

from traditional, SEP, or SIMPLE IRAs

due to disability if you made a

to a Roth IRA, enter on line 8 the net

IRAs

contribution (including a conversion) for

amount you converted. To figure that

2003 or an earlier year.

Complete Part II if you converted part

•

amount, subtract from the total amount

Distributions that are incident to

or all of your traditional, SEP, or

converted in 2008 any portion that you

divorce. The transfer of part or all of

SIMPLE IRAs to a Roth IRA in 2008,

recharacterized back to traditional,

your Roth IRA to your spouse under a

excluding any portion you

SEP, or SIMPLE IRAs in 2008 or 2009

divorce or separation agreement is not

recharacterized. See item 1 under

(see Recharacterizations that begins on

taxable to you or your spouse.

Reporting recharacterizations on

•

page 3). Do not take into account

Qualified distributions you repaid

page 3 for details.

related earnings that were transferred

before March 4, 2009, if the

Limit on number of conversions. If

with the recharacterized amount or any

distributions were to be used to

you converted an amount from a

loss that occurred while the amount

purchase or construct a main home in a

traditional, SEP, or SIMPLE IRA to a

was in the Roth IRA. See item 1 under

Midwestern disaster area, but the home

Roth IRA in 2008 and then

Reporting recharacterizations on

was not purchased or constructed

recharacterized the amount back to a

page 3 for details.

because of the severe storms,

traditional, SEP, or SIMPLE IRA, you

tornadoes, or flooding. See Pub.

Line 15b

cannot reconvert that amount until the

4492-B for more information.

later of January 1, 2009, or 30 days

If all your distributions are either

Qualified disaster recovery

after the recharacterization. See Pub.

qualified disaster recovery assistance

assistance distributions and

590 for details.

distributions or qualified recovery

qualified recovery assistance

assistance distributions, enter the

You cannot convert any amount

distributions. Be sure to include on

amount from line 15a on line 15b. If you

to Roth IRAs in 2008 if (a) your

line 19, all qualified disaster recovery

have distributions unrelated to either

modified AGI for Roth IRA

CAUTION

assistance distributions and all recovery

the Midwestern severe storms,

purposes (see page 2) is more than

disaster distributions you received,

tornadoes, or flooding; or the Kansas

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

even if they were later repaid.

storms and tornadoes, as well as

married filing separately and you lived

qualified disaster recovery assistance

If, after considering the items above,

with your spouse at any time in 2008. If

distributions or qualified recovery

you do not have an amount to enter on

you erroneously made a conversion,

assistance distributions, you will need

line 19, do not complete Part III; your

you must recharacterize the converted

to multiply the amount on line 15a by a

Roth IRA distribution(s) is not taxable.

amount. See Recharacterizations that

fraction. The numerator of the fraction

Instead, include your total Roth IRA

begins on page 3.

is your total disaster recovery

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

Line 16

assistance distributions or recovery

Form 1040A, line 11a; or Form

assistance distributions. The

1040NR, line 16a.

If you did not complete line 8, see the

denominator of the fraction is the

instructions for that line. Then, enter on

Line 20

amount from Form 8606, line 7. See

line 16 the amount you would have

the example below.

entered on line 8 had you completed it.

If you had a qualified first-time

Example. You received a

homebuyer distribution from your Roth

Line 17

distribution from your traditional IRA

IRA and you made a contribution

(that you did not roll over) in the

If you did not complete line 11, enter on

(including a conversion) to a Roth IRA

amount of $30,000 on April 1, 2008,

line 17 the amount from line 2 (or the

for 2003 or an earlier year, enter the

unrelated to the severe storms,

amount you would have entered on line

amount of your qualified expenses on

-7-

Instructions For Form 8606 - Nondeductible Iras - 2008 Page 7

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