Instructions For Form 8606 - 2015 (Page 5 of 12) in pdf

Return of IRA

If you made a contribution for 2014

Year(s)

Contribution

and you had it returned to you in 2015

Contributions

limit

limit if age

as described above, do not report the

50 or older at

If, in 2015 or 2016, you made traditional

distribution on your 2015 tax return.

the end of

IRA contributions or Roth IRA

Instead, report it on your 2014 original

the year

contributions for 2015 and you had

or amended return in the manner

those contributions returned to you with

2013 or

$5,500

$6,500

described above.

any related earnings (or minus any loss)

2014

Example. On May 28, 2015, you

by the due date (including extensions)

2008

$5,000

$6,000

contributed $4,000 to your traditional

of your 2015 tax return, the returned

through

IRA. The value of the IRA was $18,000

contributions are treated as if they were

2012

prior to the contribution. On December

never contributed. Do not report the

2006 or

$4,000

$5,000

29, 2015, when you are age 57 and the

contribution or distribution on Form

2007

value of the IRA is $23,600, you realize

8606 or take a deduction for the

you cannot make the entire contribution

2005

$4,000

$4,500

contribution. However, you must include

because your taxable compensation for

the amount of the distribution of the

2002

$3,000

$3,500

the year will be only $3,000. You decide

returned contributions you made in

through

to have $1,000 of the contribution

2015 and any related earnings on your

2004

returned to you and withdraw $1,073

2015 Form 1040, line 15a; Form 1040A,

1997

$2,000

—

from your IRA ($1,000 contribution plus

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

through

$73 earnings). You did not make any

Also include the related earnings on

2001

other withdrawals or contributions. You

your 2015 Form 1040, line 15b; Form

before 1997

$2,250

—

do not file Form 8606. You deduct the

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

$3,000 remaining contribution on Form

line 16b. Attach a statement explaining

1040. You include $1,073 on Form

the distribution. You cannot deduct any

If the excess contribution to your

1040, line 15a, and $73 on line 15b. You

loss that occurred (see Pub. 590-B for

traditional IRA for the year included a

attach a statement to your tax return

an exception if you withdrew the entire

rollover and the excess occurred

explaining the distribution. Because you

amount in all your traditional or Roth

because the information the plan was

properly removed the excess

IRAs). Also, if you were under age 59

required to give you was incorrect,

contribution with the related earnings by

at the time of a distribution with related

increase the contribution limit amount

the due date of your tax return, you are

earnings, you generally are subject to

for the year shown in the table above by

not subject to the additional 6% tax on

the additional 10% tax on early

the amount of the excess that is due to

excess contributions, reported on Form

distributions (see Form 5329, Additional

the incorrect information.

5329. However, because you were

Taxes on Qualified Plans (Including

under age 59

at the time of the

IRAs) and Other Tax-Favored

If the total contributions for the year

distribution, the $73 of earnings is

Accounts).

included employer contributions to a

subject to the additional 10% tax on

SEP IRA, increase the contribution limit

If you timely filed your 2015 tax return

early distributions. You include $7.30 on

amount for the year shown in the table

without withdrawing a contribution that

Form 1040, line 59.

above by the smaller of the amount of

you made in 2015, you can still have the

the employer contributions or:

Return of Excess

contribution returned to you within 6

2014

$52,000

months of the due date of your 2015 tax

Traditional IRA

return, excluding extensions. If you do,

Contributions

2013

$51,000

file an amended return with “Filed

2012

$50,000

The return (distribution) in 2015 of

pursuant to section 301.9100-2” written

excess traditional IRA contributions for

at the top. Report any related earnings

2009, 2010, or 2011

$49,000

years prior to 2015 is not taxable if all

on the amended return and include an

2008

$46,000

three of the following apply.

explanation of the withdrawn

2007

$45,000

contribution. Make any other necessary

1. The distribution was made after

changes on the amended return (for

the due date, including extensions, of

2006

$44,000

example, if you reported the

your tax return for the year for which the

2005

$42,000

contributions as excess contributions on

contribution was made (if the

2004

$41,000

your original return, include an amended

distribution was made earlier, see

Form 5329 reflecting that the withdrawn

Return of IRA Contributions

earlier).

2002 or 2003

$40,000

contributions are no longer treated as

2. No deduction was allowable

2001

$35,000

having been contributed).

(without regard to the modified AGI

before 2001

$30,000

limitation) or taken for the excess

In most cases, the related earnings

contributions.

that you must withdraw are figured by

3. The total contributions (excluding

your IRA trustee or custodian. If you

Include the total amount distributed

rollovers) to your traditional and SEP

need to figure the related earnings on

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

IRAs for the year for which the excess

IRA contributions that were returned to

line 11a; or Form 1040NR, line 16a; and

contributions were made did not exceed

you, see Contributions Returned Before

attach a statement to your return

the amounts shown in the following

Due Date of Return in chapter 1 of Pub.

explaining the distribution. See

table.

590-A. If you made a contribution or

Example, later.

distribution while the IRA held the

If you meet these conditions and are

returned contribution, see Pub. 590-A.

otherwise required to file Form 8606:

Instructions for Form 8606 (2015)

Instructions For Form 8606 - 2015 Page 5

Related Articles

Related forms

Related Categories