Instructions For Form 8606 - 2015 (Page 3 of 12) in pdf

Nontaxable combat pay if you were a

due date of your return (including

Contribution? in chapter 1 of Pub.

extensions) and reflect it on your return.

590-A. Treat any earnings or loss that

member of the U.S. Armed Forces.

However, if you timely filed your return

occurred in the first IRA as having

Self-employment income. If you are

without making the transfer, you can

occurred in the second IRA. You cannot

self-employed (a sole proprietor or a

make the transfer within 6 months of the

deduct any loss that occurred while the

partner), taxable compensation is your

due date of your return, excluding

funds were in the first IRA. Also, you

net earnings from your trade or business

extensions. If necessary, file an

cannot take a deduction for a

(provided your personal services are a

amended return reflecting the transfer

contribution to a traditional IRA if you

material income-producing factor)

(see

Amending Form

8606, later). Write

later recharacterize the amount. The

reduced by your deduction for

“Filed pursuant to section 301.9100-2”

following discussion explains how to

contributions made on your behalf to

on the amended return.

report the four different types of

retirement plans and the deductible part

recharacterizations, including the

of your self-employment tax.

Reporting recharacterizations. Treat

statement that you must attach to your

Alimony and separate maintenance.

any recharacterized IRA contribution,

return explaining the recharacterization.

Roth IRA conversion, or Roth IRA

See What Is Compensation? under

1. You made a contribution to a

rollover from a qualified retirement plan

Who Can Open a Traditional IRA? in

traditional IRA and later recharacterized

as though the amount of the

chapter 1 of Pub. 590-A for details.

part or all of it in a trustee-to-trustee

contribution, conversion, or rollover was

transfer to a Roth IRA. If you

originally contributed to the second IRA,

Recharacterizations

recharacterized only part of the

not the first IRA. For the

Generally, you can recharacterize

contribution, report the nondeductible

recharacterization, you must transfer the

(correct) an IRA contribution, Roth IRA

traditional IRA portion of the remaining

amount of the original contribution,

conversion, or a Roth IRA rollover from

contribution, if any, on Form 8606, Part

conversion, or rollover plus any related

a qualified retirement plan by making a

I. If you recharacterized the entire

earnings or less any related loss. In

trustee-to-trustee transfer from one IRA

contribution, do not report the

most cases, your IRA trustee or

to another type of IRA.

contribution on Form 8606. In either

custodian figures the amount of the

Trustee-to-trustee transfers are made

case, attach a statement to your return

related earnings you must transfer. If

directly between financial institutions or

explaining the recharacterization. If the

you need to figure the related earnings,

within the same financial institution. You

recharacterization occurred in 2015,

see How Do You Recharacterize a

generally must make the transfer by the

Maximum Roth IRA Contribution Worksheet

Keep for Your Records

Caution: If married filing jointly and the combined taxable compensation (defined earlier) for you and your spouse is

less than $11,000 ($12,000 if one spouse is 50 or older at the end of 2015; $13,000 if both spouses are 50 or older at

the end of 2015), do not use this worksheet. Instead, see Pub. 590-A for special rules.

1. If married filing jointly, enter $5,500 ($6,500 if age 50 or older at the end of 2015). All

others, enter the smaller of $5,500 ($6,500 if age 50 or older at the end of 2015) or

your

taxable compensation

(defined earlier) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter your total contributions to traditional IRAs for 2015 . . . . . . . . . . . . . . . . . . . . . . . . .

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter: $193,000 if married filing jointly or qualifying widow(er); $10,000 if married

filing separately and you lived with your spouse at any time in 2015. All others, enter

$131,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter your

modified AGI for Roth IRA purposes

(discussed earlier) . . . . . . . . . . . . . . .

6. Subtract line 5 from line 4. If zero or less, stop here; you may not contribute to a

Roth IRA for 2015. See

Recharacterizations

above if you made Roth IRA

contributions for 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. If line 4 above is $131,000, enter $15,000; otherwise, enter $10,000. If line 6 is more

than or equal to line 7, skip lines 8 and 9 and enter the amount from line 3 on

line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Divide line 6 by line 7 and enter the result as a decimal (rounded to at least 3

places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Multiply line 1 by line 8. If the result is not a multiple of $10, increase it to the next

multiple of $10 (for example, increase $490.30 to $500). Enter the result, but not

less than $200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Maximum 2015 Roth IRA Contribution. Enter the smaller of line 3 or line 9. See

Recharacterizations

above if you contributed more than this amount to Roth IRAs

for 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

Instructions for Form 8606 (2015)

Instructions For Form 8606 - 2015 Page 3

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