Instructions For Form 8606 - Nondeductible Iras

2 0 09

Department of the Treasury

Internal Revenue Service

Instructions for Form 8606

Nondeductible IRAs

Section references are to the Internal

traditional IRAs, do not report the

When and Where To File

distributions on Form 8606. Instead,

Revenue Code unless otherwise noted.

File Form 8606 with your 2009 Form

see the instructions for Form 1040,

General Instructions

1040, 1040A, or 1040NR. If you are not

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

required to file an income tax return but

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

are required to file Form 8606, sign

What’s New for 2009

16a and 16b. Also, to find out if any of

Form 8606 and send it to the Internal

your contributions to traditional IRAs

Modified AGI limit for Roth IRA

Revenue Service at the same time and

are deductible, see the instructions for

contributions increased. You can

place you would otherwise file Form

Form 1040, line 32; Form 1040A, line

contribute to a Roth IRA for 2009 only if

1040, 1040A, or 1040NR.

17; or Form 1040NR, line 31.

your 2009 modified adjusted gross

income (AGI) for Roth IRA purposes is

Definitions

Who Must File

less than:

•

$176,000 if married filing jointly or

File Form 8606 if any of the following

Deemed IRAs

qualifying widow(er),

apply.

•

A qualified employer plan (retirement

•

$120,000 if single, head of

You made nondeductible

plan) can maintain a separate account

household, or married filing separately

contributions to a traditional IRA for

or annuity under the plan (a deemed

and you did not live with your spouse at

2009, including a repayment of a

IRA) to receive voluntary employee

any time in 2009, or

qualified reservist distribution.

•

contributions. If in 2009 you had a

$10,000 if married filing separately

•

You received distributions from a

deemed IRA, use the rules for either a

and you lived with your spouse at any

traditional, SEP, or SIMPLE IRA in

traditional IRA or a Roth IRA depending

time in 2009.

2009 and your basis in traditional IRAs

on which type it was. See Pub. 590 for

See Roth IRAs on page 2.

is more than zero. For this purpose, a

more details.

Required minimum distributions for

distribution does not include a rollover

2009. For 2009, you are not required

(other than a repayment of a qualified

Traditional IRAs

to take a minimum distribution from

disaster recovery assistance

For purposes of Form 8606, a

your IRA. For more information, see

distribution), qualified charitable

traditional IRA is an individual

Pub. 590.

distribution, a one-time distribution to

retirement account or an individual

fund an HSA, conversion,

retirement annuity other than a SEP,

What’s New for 2010

recharacterization, or return of certain

SIMPLE, or Roth IRA.

contributions.

New rules for rollovers and

•

Contributions. An overall contribution

You converted an amount from a

conversions from eligible retirement

limit applies to traditional IRAs and

traditional, SEP, or SIMPLE IRA to a

plans to Roth IRAs. For tax years

Roth IRAs. See Overall Contribution

Roth IRA in 2009 (unless you

starting in 2010, the $100,000 modified

Limit for Traditional and Roth IRAs on

recharacterized the entire

AGI limit on rollovers and conversions

page 2. Contributions to a traditional

conversion — see page 3).

from eligible retirement plans to Roth

•

IRA may be fully deductible, partially

IRAs is eliminated and married

You received distributions from a

deductible, or completely

Roth IRA in 2009 (other than a rollover,

taxpayers filing a separate return can

nondeductible.

now rollover or convert amounts to a

recharacterization, or return of certain

Roth IRA. Unless you elect otherwise,

contributions — see page 7).

Basis. Your basis in traditional IRAs is

•

the total of all your nondeductible

half of the income as the result of a

You made a repayment of a qualified

contributions and nontaxable amounts

rollover or conversion in 2010 is

hurricane, disaster recovery assistance,

included in income in 2011, and the

included in rollovers made to traditional

or recovery assistance distribution that

other half in 2012. For more

IRAs minus the total of all your

is attributable to previously

nontaxable distributions, adjusted if

information, see Pub. 590 or Pub. 575.

nondeductible contributions.

necessary (see the instructions for line

Note. If you recharacterized a 2009

Purpose of Form

2 on page 5). Keep track of your basis

Roth IRA contribution as a traditional

to figure the nontaxable part of your

IRA contribution, or vice versa, treat the

Use Form 8606 to report:

•

future distributions.

contribution as having been made to

Nondeductible contributions you

the second IRA, not the first IRA. See

made to traditional IRAs,

SEP IRAs

•

page 3.

Distributions from traditional, SEP, or

A simplified employee pension (SEP) is

SIMPLE IRAs, if you have ever made

an employer-sponsored plan under

If you received any qualified

nondeductible contributions to

which an employer can make

disaster recovery assistance

traditional IRAs,

•

contributions to traditional IRAs for its

distributions, complete Part I of

Distributions from Roth IRAs, and

CAUTION

•

employees. If you make contributions to

Form 8930 before you complete Form

Conversions from traditional, SEP, or

that IRA (excluding employer

8606.

SIMPLE IRAs to Roth IRAs.

contributions you make if you are

Additional information. See Pub.

You do not have to file Form

self-employed), they are treated as

590, for more details.

TIP

8606 solely to report regular

contributions to a traditional IRA and

If you received distributions from

contributions to Roth IRAs or

may be deductible or nondeductible.

TIP

a traditional, SEP, or SIMPLE

rollovers from qualified retirement plans

SEP IRA distributions are reported in

IRA in 2009 and you have never

to Roth IRAs. But see What Records

the same manner as traditional IRA

made nondeductible contributions to

Must I Keep? on page 5.

distributions.

Cat. No. 25399E

Instructions For Form 8606 - Nondeductible Iras - 2009

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