Instructions For Form 8606 - 2015 (Page 4 of 12) in pdf

include the amount transferred from the

Example. You are single, covered by

amount to a traditional IRA in a

traditional IRA on Form 1040, line 15a;

an employer retirement plan, and you

trustee-to-trustee transfer. You report

Form 1040A, line 11a; or Form 1040NR,

contributed $4,000 to a new Roth IRA

$20,000 on Form 1040, line 15a. You do

line 16a. If the recharacterization

on June 16, 2015. On December 29,

not include the $19,000 on line 15a

occurred in 2016, report the amount

2015, you determine that your 2015

because it did not occur in 2015 (you

transferred only in the attached

modified AGI will allow a full traditional

also do not report that amount on your

statement, and not on your 2015 or

IRA deduction. You decide to

2016 return because it does not apply to

2016 tax return.

recharacterize the Roth IRA contribution

the 2016 tax year). You attach a

as a traditional IRA contribution and

statement to Form 1040 explaining that

Example. You are single, covered by

have $4,200, the balance in the Roth

(a) you made a conversion of $20,000

an employer retirement plan, and you

IRA account ($4,000 contribution plus

from a traditional IRA on May 20, 2015,

contributed $4,000 to a new traditional

$200 related earnings), transferred from

and (b) you recharacterized the entire

IRA on May 27, 2015. On February 24,

your Roth IRA to a traditional IRA in a

amount, which was then valued at

2016, you determine that your 2015

trustee-to-trustee transfer. You deduct

$19,000, back to a traditional IRA on

modified AGI will limit your traditional

the $4,000 traditional IRA contribution

April 7, 2016.

IRA deduction to $1,000. The value of

on Form 1040. You do not file Form

your traditional IRA on that date is

4. You rolled over an amount from a

8606. You attach a statement to your

$4,400. You decide to recharacterize

qualified retirement plan to a Roth IRA

return explaining the recharacterization.

$3,000 of the traditional IRA contribution

in 2015 and later recharacterized all or

The statement indicates that you

as a Roth IRA contribution, and have

part of the amount in a trustee-to-trustee

contributed $4,000 to a new Roth IRA

$3,300 ($3,000 contribution plus $300

transfer to a traditional IRA. Do not

on June 16, 2015; recharacterized that

related earnings) transferred from your

report the rollover (whether or not you

contribution on December 29, 2015, by

traditional IRA to a Roth IRA in a

recharacterized all or part of it) or the

transferring $4,200, the balance in the

trustee-to-trustee transfer. You deduct

recharacterization on Form 8606. Attach

Roth IRA, to a traditional IRA in a

the $1,000 traditional IRA contribution

a statement to your return explaining the

trustee-to-trustee transfer; and

on Form 1040. You do not file Form

recharacterization and include the

deducted the traditional IRA contribution

8606. You attach a statement to your

amount of the original rollover on Form

of $4,000 on Form 1040. You include

return explaining the recharacterization.

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

the $4,200 distribution from your Roth

The statement indicates that you

Form 1040NR, line 17a. If the

IRA on your 2015 Form 1040, line 15a.

contributed $4,000 to a traditional IRA

recharacterization occurred in 2015,

on May 27, 2015; recharacterized

3. You converted an amount from a

also include the amount transferred

$3,000 of that contribution on February

traditional, SEP, or SIMPLE IRA to a

from the Roth IRA on Form 1040,

24, 2016, by transferring $3,000 plus

Roth IRA in 2015 and later

line 15a; Form 1040A, line 11a; or Form

$300 of related earnings from your

recharacterized all or part of the amount

1040NR, line 16a. If the

traditional IRA to a Roth IRA in a

in a trustee-to-trustee transfer to a

recharacterization occurred in 2016,

trustee-to-trustee transfer; and

traditional, SEP, or SIMPLE IRA. If you

report the amount transferred from the

deducted the remaining traditional IRA

recharacterized only part of the amount

Roth IRA only in the attached statement,

contribution of $1,000 on Form 1040.

converted, report the amount not

and not on your 2015 or 2016 tax return

You do not report the $3,300 distribution

recharacterized on Form 8606, Part II. If

(a 2015 Form 1099-R should be sent to

from your traditional IRA on your 2015

you recharacterized the entire amount

you by January 31, 2017, stating that

Form 1040 because the distribution

converted, do not report the conversion

you made a recharacterization of an

occurred in 2016. You do not report the

on Form 8606. In either case, attach a

amount in the prior year).

distribution on your 2016 Form 1040

statement to your return explaining the

Example. You are single and you

because the recharacterization related

recharacterization and include the

rolled over $50,000 from your 401(k)

to 2015 and was explained in an

amount converted (whether or not

plan to a new Roth IRA on July 20,

attachment to your 2015 return.

recharacterized) in the total on Form

2015. On March 25, 2016, you decide to

1040, line 15a; Form 1040A, line 11a; or

2. You made a contribution to a

recharacterize the rollover. The value of

Form 1040NR, line 16a. If the

Roth IRA and later recharacterized part

the Roth IRA on that date is $49,000.

recharacterization occurred in 2015,

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

You recharacterize the rollover by

also include the amount transferred out

to a traditional IRA. Report the

transferring that entire amount to a

from the Roth IRA on that line. If the

nondeductible traditional IRA portion of

traditional IRA in a trustee-to-trustee

recharacterization occurred in 2016,

the recharacterized contribution, if any,

transfer. You report $50,000 on Form

report the amount transferred only in the

on Form 8606, Part I. Do not report the

1040, line 16a. You do not include the

attached statement, and not on your

Roth IRA contribution (whether or not

$49,000 on line 15a because the

2015 or 2016 tax return (a 2016 Form

you recharacterized all or part of it) on

transfer to the traditional IRA did not

1099-R should be sent to you by

Form 8606. Attach a statement to your

occur in 2015 (you also do not report

January 31, 2017, stating that you made

return explaining the recharacterization.

that amount on your 2016 return

a recharacterization of an amount

If the recharacterization occurred in

because the recharacterization does not

converted in the prior year).

2015, include the amount transferred

apply to the 2016 tax year). You do not

from the Roth IRA on Form 1040,

Example. You are married filing

file Form 8606. You attach a statement

line 15a; Form 1040A, line 11a; or Form

jointly and converted $20,000 from your

to Form 1040 explaining that (a) you

1040NR, line 16a. If the

traditional IRA to a new Roth IRA on

made a rollover of $50,000 from a

recharacterization occurred in 2016,

May 20, 2015. On April 7, 2016, you

401(k) plan to a Roth IRA on July 20,

report the amount transferred only in the

decide to recharacterize the conversion.

2015, and (b) you recharacterized the

attached statement, and not on your

The value of the Roth IRA on that date is

entire amount, which was then valued at

2015 or 2016 tax return.

$19,000. You recharacterize the

$49,000, to a traditional IRA on March

conversion by transferring that entire

25, 2016.

Instructions for Form 8606 (2015)

Instructions For Form 8606 - 2015 Page 4

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