Instructions For Form 8606 - 2015 (Page 2 of 12) in pdf

IRAs minus the total of all your

When figuring modified AGI for

Contributions. You can contribute to a

nontaxable distributions, adjusted if

Roth IRA purposes, you may

Roth IRA for 2015 only if your 2015

necessary (see the instructions for

have to refigure items based on

modified AGI for Roth IRA purposes is

CAUTION

line

2, later).

modified AGI, such as taxable social

less than:

security benefits and passive activity

$193,000 if married filing jointly or

Keep track of your basis to

losses allowed under the special

qualifying widow(er),

figure the nontaxable part of

allowance for rental real estate

$131,000 if single, head of

your future distributions.

activities. See Can You Contribute to a

CAUTION

household, or if married filing separately

Roth IRA? in Pub. 590-A for details.

SEP IRAs

and you did not live with your spouse at

any time in 2015, or

A simplified employee pension (SEP) is

Distributions. See the instructions for

$10,000 if married filing separately

an employer-sponsored plan under

Part

III, later.

and you lived with your spouse at any

which an employer can make

Overall Contribution Limit for

time in 2015.

contributions to traditional IRAs for its

Traditional and Roth IRAs

Use the

Maximum Roth IRA

employees. If you make contributions to

Contribution Worksheet

, later, to figure

that IRA (excluding employer

If you are not married filing jointly, your

the maximum amount you can

contributions you make if you are

limit on contributions to traditional and

contribute to a Roth IRA for 2015. If you

self-employed), they are treated as

Roth IRAs is generally the smaller of

are married filing jointly, complete the

contributions to a traditional IRA and

$5,500 ($6,500 if age 50 or older at the

worksheet separately for you and your

may be deductible or nondeductible.

end of 2015) or your

taxable

spouse.

SEP IRA distributions are reported in

compensation

(defined below).

the same manner as traditional IRA

If you contributed too much to

If you are married filing jointly, your

distributions.

your Roth IRA, see

contribution limit is generally $5,500

SIMPLE IRAs

Recharacterizations, later.

($6,500 if age 50 or older at the end of

CAUTION

A SIMPLE IRA plan is a tax-favored

2015) and your spouse's contribution

Modified AGI for Roth IRA purposes.

retirement plan that certain small

limit is $5,500 ($6,500 if age 50 or older

First, figure your AGI (Form 1040,

employers (including self-employed

at the end of 2015) as well. But if the

line 38; Form 1040A, line 22; or Form

individuals) can set up for the benefit of

combined taxable compensation of both

1040NR, line 37). Then, refigure it by:

their employees. Your participation in

you and your spouse is less than

1. Subtracting the following.

your employer's SIMPLE IRA plan does

$11,000 ($12,000 if one spouse is 50 or

not prevent you from making

a. Roth IRA conversions included

older at the end of 2015; $13,000 if both

contributions to a traditional or Roth

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

spouses are 50 or older at the end of

IRA.

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

2015), see Kay Bailey Hutchison

Spousal IRA Limit in Pub. 590-A for

b. Roth IRA rollovers from qualified

Roth IRAs

special rules.

retirement plans included on Form

A Roth IRA is similar to a traditional IRA,

1040, line 16b; Form 1040A, line 12b; or

but has the following features.

This limit does not apply to employer

Form 1040NR, line 17b.

Contributions are never deductible.

contributions to a SEP or SIMPLE IRA.

2. Adding the following.

Contributions can be made after the

Note. Rollovers, Roth IRA conversions,

a. IRA deduction from Form 1040,

owner reaches age 70

Roth IRA rollovers from qualified

line 32; Form 1040A, line 17; or Form

No minimum distributions are

retirement plans and qualified reservist

1040NR, line 32.

required during the Roth IRA owner's

distributions do not affect your

lifetime.

b. Student loan interest deduction

contribution limit.

Qualified distributions are not

from Form 1040, line 33; Form 1040A,

includible in income.

line 18; or Form 1040NR, line 33.

The amount you can contribute

to a Roth IRA may also be

c. Tuition and fees deduction from

Qualified distribution. Generally, a

limited by your modified AGI

Form 1040, line 34; or Form 1040A,

qualified distribution is any distribution

CAUTION

(see Contributions, earlier, and the

line 19.

from your Roth IRA that meets the

Maximum Roth IRA Contribution

following requirements.

d. Domestic production activities

Worksheet), later.

deduction from Form 1040, line 35; or

1. It is made after the 5-year period

Form 1040NR, line 34.

beginning with the first year for which a

Taxable compensation. Taxable

contribution was made to a Roth IRA

e. Exclusion of interest from Form

compensation includes the following.

(including a conversion or a rollover

8815, Exclusion of Interest From Series

Wages, salaries, tips, etc. If you

from a qualified retirement plan) set up

EE and I U.S. Savings Bonds Issued

received a distribution from a

for your benefit, and

After 1989.

nonqualified deferred compensation

2. The distribution is made:

plan or nongovernmental section 457

f. Exclusion of employer-provided

plan that is included in Form W-2, box 1,

adoption benefits from Form 8839,

a. On or after the date you reach

or in Form 1099-MISC, box 7, do not

Qualified Adoption Expenses.

age 59

include that distribution in taxable

g. Foreign earned income exclusion

b. After your death,

compensation. The distribution should

from Form 2555, Foreign Earned

c. Due to your disability, or

be shown in (a) Form W-2, box 11, (b)

Income, or Form 2555-EZ, Foreign

d. For qualified first-time homebuyer

Form W-2, box 12, with code Z, or (c)

Earned Income Exclusion.

expenses.

Form 1099-MISC, box 15b. If it is not,

h. Foreign housing exclusion or

contact your employer for the amount of

deduction from Form 2555.

the distribution.

Instructions for Form 8606 (2015)

Instructions For Form 8606 - 2015 Page 2

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