Description Of Major Changes And Instructions For Form 8606 - Nondeductible Iras - 2010 Page 8
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12IF the last Form
THEN enter on line
The IRS may waive the 60-day
return explaining the distribution and
8606 you filed was 2...
requirement if failing to waive it would
include the amount of the distribution
for...
be against equity or good conscience,
on Form 1040, line 15a; Form 1040A,
such as situations where a casualty,
line 11a; or Form 1040NR, line 16a.
A year after 2000
The amount from
disaster, or other events beyond your
See Pub. 590 for more details.
and before 2010
line 14 of that Form
•
reasonable control prevented you from
Distributions that are incident to
8606
meeting the 60-day requirement. Also,
divorce. The transfer of part or all of
A year after 1992
The amount from
the 60-day period may be extended if
your traditional, SEP, or SIMPLE IRA to
and before 2001
line 12 of that Form
you had a frozen deposit. See Pub. 590
your spouse under a divorce or
8606
for details.
separation agreement is not taxable to
you or your spouse. If this transfer
A year after 1988
The amount from
You must reduce the amount on
results in a change in the basis of the
!
and before 1993
line 14 of that Form
line 6, by any qualified
traditional IRA of either spouse, both
8606
charitable distributions you
CAUTION
spouses must file Form 8606 and show
made in January 2011, that you are
1988
The total of the
the increase or decrease in the amount
electing to treat as made in 2010. See
amounts on lines 7
of basis on line 2. Attach a statement
Pub. 590 for more details.
and 16 of that Form
explaining this adjustment. Include in
Note. Do not include a rollover from a
8606
the statement the character of the
traditional, SEP, or SIMPLE IRA to a
amounts in the traditional IRA, such as
1987
The total of the
qualified retirement plan even if it was
the amount attributable to
amounts on lines 4
an outstanding rollover.
and 13 of that Form
nondeductible contributions. Also,
Deleted Repayment of QDRA distribs.
8606
include the name and social security
Line 7
and example
number of the other spouse.
Line 8
Deleted para on QDRA
If you received a distribution in
Line 4
!
distrib
2010 from a traditional, SEP, or
If, in 2010, you converted any amounts
If you made contributions to traditional
SIMPLE IRA, and you also
CAUTION
from traditional, SEP, or SIMPLE IRAs
IRAs for 2010 in 2010 and 2011 and
made contributions for 2010 to a
to a Roth IRA, enter on line 8 the net
you have both deductible and
traditional IRA that may not be fully
amount you converted. To figure that
nondeductible contributions, you can
deductible because of the income
amount, subtract from the total amount
choose to treat the contributions made
limits, you must make a special
converted in 2010 any portion that you
in 2010 first as nondeductible
computation before completing the rest
recharacterized back to traditional,
contributions and then as deductible
of this form. For details, including how
SEP, or SIMPLE IRAs in 2010 or 2011
contributions, or vice versa.
to complete Form 8606, see Are
(see Recharacterizations that begins on
Distributions Taxable? in chapter 1 of
Example. You made contributions
page 3). Do not take into account
Pub. 590.
for 2010 of $2,000 in May 2010 and
related earnings that were transferred
Do not include any of the following
$2,000 in January 2011, of which
with the recharacterized amount or any
on line 7.
$3,000 are deductible and $1,000 are
loss that occurred while the amount
•
Distributions that you converted to a
nondeductible. You choose $1,000 of
was in the Roth IRA. See item 1 under
Roth IRA.
your contribution in 2010 to be
Reporting recharacterizations on
•
Recharacterizations.
nondeductible. You enter the $1,000 on
page 3 for details.
•
Distributions that you rolled over by
line 1, but not line 4, and it becomes
Deleted instr for Line 15b
Line 15
December 31, 2010, and any
part of your basis for 2010.
Deleted "c"
outstanding rollovers included on
If you were under age 59
/
at the time
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2
Although the contributions to
line 6.
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you received distributions from your
traditional IRAs for 2010 that you made
Distributions you rolled over to a
traditional, SEP, or SIMPLE IRA, there
from January 1, 2011, through April 18,
qualified retirement plan.
•
generally is an additional 10% tax on
2011, can be treated as nondeductible,
A one-time distribution to fund an
the portion of the distribution that is
they are not included in figuring the
HSA. For details, see Pub. 969, Health
included in income (25% for a
nontaxable part of any distributions you
Savings Accounts and Other
distribution from a SIMPLE IRA during
received in 2010.
Tax-Favored Health Plans.
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the first 2 years). See the Instructions
Distributions that are treated as a
for Form 1040, line 58, or the
Line 6
return of contributions under Return of
Instructions for Form 1040NR, line 56.
IRA Contributions on page 4.
Enter the total value of all your
•
Qualified charitable distributions. For
Part II—2010
traditional, SEP, and SIMPLE IRAs as
details see the instructions for Form
of December 31, 2010, plus any
Conversions From
1040, lines 15a and 15b; Form 1040A,
outstanding rollovers. A statement
lines 11a and 11b; or Form 1040NR,
should be sent to you by January 31,
Traditional, SEP, or
, Pub. 590
lines 16a and 16b.
2011, showing the value of each IRA
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Qualified charitable distributions you
SIMPLE IRAs to Roth
on December 31, 2010. However, if you
made in January 2011, that you elect to
recharacterized any amounts, enter on
IRAs
treat as made in 2010. For details, see
line 6 the total value taking into account
Pub. 590.
all recharacterizations, including
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Complete Part II if you converted part
Distributions that are treated as a
recharacterizations made after
or all of your traditional, SEP, or
return of excess contributions under
December 31, 2010.
SIMPLE IRAs to a Roth IRA in 2010,
Return of Excess Traditional IRA
excluding any portion you
For line 6, a rollover is a tax-free
Contributions on page 4.
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recharacterized. See item 1 under
distribution from one traditional, SEP, or
Distributions of excess contributions
Reporting recharacterizations on
SIMPLE IRA that is contributed to
due to incorrect rollover information. If
page 3 for details.
another traditional, SEP, or SIMPLE
an excess contribution in your
Limit on number of conversions. If
IRA. The rollover must be completed
traditional IRA is the result of a rollover
within 60 days of receiving the
from a qualified retirement plan and the
you converted an amount from a
distribution from the first IRA. An
excess occurred because the
traditional, SEP, or SIMPLE IRA to a
outstanding rollover is any amount
information the plan was required to
Roth IRA in 2010 and then
distributed in 2010 after November 1,
give you was incorrect, the distribution
recharacterized the amount back to a
2010, that was rolled over in 2011, but
of the excess contribution is not
traditional, SEP, or SIMPLE IRA, you
within the 60-day rollover period.
taxable. Attach a statement to your
cannot reconvert that amount until the
-6-
Instructions for Form 8606 (2010)
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