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2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 8606

Nondeductible IRAs

•

Nondeductible contributions you

recharacterized the entire

Section references are to the Internal

Revenue Code unless otherwise noted.

made to traditional IRAs,

rollover — see page 3).

•

General Instructions

Distributions from traditional, SEP, or

You received distributions from a

SIMPLE IRAs, if you have ever made

Roth IRA in 2010 (other than a rollover,

nondeductible contributions to

recharacterization, or return of certain

What’s New

traditional IRAs,

contributions — see page 7).

•

Distributions from Roth IRAs,

You rolled over an amount from your

•

Modified AGI limit for Roth IRA

Conversions from traditional, SEP, or

401(k) or 403(b) plan to a designated

contributions increased. You can

SIMPLE IRAs to Roth IRAs,

Roth account within the same plan

•

contribute to a Roth IRA for 2010 only if

Rollovers from qualified retirement

(in-plan Roth rollover) after September

your 2010 modified adjusted gross

plans (other than designated Roth

27, 2010. See the instructions for Part

income (AGI) for Roth IRA purposes is

accounts) to Roth IRAs.

III on page 7.

•

less than:

In-plan Roth rollovers, and

You received a distribution from your

•

$177,000 if married filing jointly or

Certain distributions from designated

designated Roth account after

qualifying widow(er),

Roth accounts allocable to in-plan Roth

September 27, 2010, that is allocable to

•

$120,000 if single, head of

rollovers.

an in-plan Roth rollover (only if the

details

household, or married filing separately

in-plan Roth rollover is included in

Additional information. See Pub.

and you did not live with your spouse at

income in 2011 and 2012). See the

590 for more information on IRAs. See

any time in 2010, or

instructions for Part IV on page 7.

•

Pub. 575 for more details on in-plan

•

$10,000 if married filing separately

You made a repayment of a qualified

Roth rollovers.

and qualified retirement plans

and you lived with your spouse at any

disaster recovery assistance, or

time in 2010.

If you received distributions from

qualified recovery assistance

Deleted

TIP

See Roth IRAs on page 2.

WN on

a traditional, SEP, or SIMPLE

distribution that is attributable to

2009

IRA in 2010 and you have never

New rules for rollovers and

previously nondeductible contributions.

RMD

•

made nondeductible contributions

conversions from eligible retirement

You received a distribution from an

waiver

(including nontaxable amounts you

plans to Roth IRAs. Starting in 2010,

inherited Roth IRA that was not a

rolled over from a qualified retirement

qualified distribution or from a

the $100,000 modified AGI limit on

plan) to traditional IRAs, do not report

traditional IRA that has basis or you

rollovers and conversions from eligible

the distributions on Form 8606. Instead,

rolled over an inherited plan account to

retirement plans to Roth IRAs is

see the instructions for Form 1040,

a Roth IRA. File a separate Form 8606

eliminated and married taxpayers filing

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

for each inherited IRA.

a separate return can now roll over or

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

convert amounts to a Roth IRA. Unless

Note. If you recharacterized a 2010

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

you elect otherwise, half of the income

your contributions to traditional IRAs

Roth IRA contribution as a traditional

as the result of a rollover or conversion

are deductible, see the instructions for

IRA contribution, or vice versa, treat the

in 2010 is included in income in 2011

Form 1040, line 32; Form 1040A, line

contribution as having been made to

and the other half in 2012. Conversions

17; or Form 1040NR, line 32.

the second IRA, not the first IRA. See

from IRAs are reported in Part II and

page 3.

rollovers from qualified retirement plans

Who Must File

Deleted caution related to QDRA distribs

are reported in Part III. For more

You do not have to file Form

details, see Pub. 590 or Pub. 575.

File Form 8606 if any of the following

TIP

8606 solely to report regular

In-plan rollovers to designated Roth

apply.

•

contributions to Roth IRAs. But

accounts. After September 27, 2010,

You made nondeductible

see What Records Must I Keep? on

contributions to a traditional IRA for

if you are a plan participant in a 401(k)

page 5.

Deleted text

2010, including a repayment of a

or 403(b) plan, your plan may permit

Deleted ref to QDRA distrib.

related to

qualified reservist distribution.

When and Where To File

you to roll over amounts in those plans

rollovers

•

You received distributions from a

from qual

to a designated Roth account within the

traditional, SEP, or SIMPLE IRA in

ret plans to

File Form 8606 with your 2010 Form

same plan (in-plan Roth rollover). The

Roth IRAs

2010 and your basis in traditional IRA

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

rollover of any untaxed amounts must

is more than zero. For this purpose, a

required to file an income tax return but

be included in income. Unless you elect

distribution does not include a rollover

are required to file Form 8606, sign

otherwise, half of the income as the

qualified charitable distribution

Form 8606 and send it to the Internal

result of a rollover in 2010 is included in

(including a qualified charitable

Revenue Service at the same time and

income in 2011 and the other half in

distribution made in January 2011, tha

place you would otherwise file Form

2012. These rollovers are reported in

you elect to treat as made in 2010),

1040, 1040A, or 1040NR.

Part III. For more details, see Pub. 575.

one-time distribution to fund an HSA,

Qualified charitable distributions.

Definitions

conversion, recharacterization, or retu

The provision that excludes up to

of certain contributions.

•

$100,000 of qualified charitable

You converted an amount from a

Deemed IRAs

distributions from income has been

traditional, SEP, or SIMPLE IRA to a

extended. If you elect, a qualified

Roth IRA in 2010 (unless you

A qualified employer plan (retirement

charitable distribution made in January

recharacterized the entire

plan) can maintain a separate account

2011, will be treated as made in 2010.

conversion — see page 3).

or annuity under the plan (a deemed

•

For more details, see Pub. 590.

You rolled over an amount from a

IRA) to receive voluntary employee

Purpose of Form

qualified retirement plan (other than a

contributions. If in 2010 you had a

designated Roth account) to a Roth

deemed IRA, use the rules for either a

Use Form 8606 to report:

IRA in 2010 (unless you

traditional IRA or a Roth IRA depending

Cat. No. 25399E

Description Of Major Changes And Instructions For Form 8606 - Nondeductible Iras - 2010 Page 3

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