Instructions For Form 8606 - 2015 (Page 6 of 12) in pdf

Penalty for Not Filing

Do not take into account the amount

or 1040A instructions, subtract line 12

(line 10 for Form 1040A) of the

of the withdrawn contributions in figuring

If you are required to file Form 8606 to

worksheet (or the amount you chose to

line 2 (for 2015 or for any later year),

report a nondeductible contribution to a

deduct on Form 1040 or Form 1040NR,

and

traditional IRA for 2015, but do not do

line 32, or Form 1040A, line 17, if less)

Do not include the amount of the

so, you must pay a $50 penalty, unless

from the smaller of line 10 or line 11

withdrawn contributions on line 7.

you can show reasonable cause.

(line 8 or line 9 for Form 1040A) of the

Example. You are single, you retired

worksheet. Enter the result on line 1 of

Overstatement Penalty

in 2012, and you had no taxable

Form 8606. You cannot deduct the

compensation after 2012. However, you

If you overstate your nondeductible

amount included on line 1.

made traditional IRA contributions (that

contributions, you must pay a $100

If you used the worksheet Figuring

you did not deduct) of $3,000 in 2013

penalty, unless you can show

Your Reduced IRA Deduction for 2015

and $4,000 in 2014. In November 2015,

reasonable cause.

in Pub. 590-A, enter on line 1 of Form

a tax practitioner informed you that you

What Records Must I

8606 any nondeductible contributions

had made excess contributions for

from the appropriate lines of that

those years because you had no

Keep?

worksheet.

taxable compensation. You withdrew

To verify the nontaxable part of

the $7,000 and filed amended returns

distributions from your IRAs, including

If you did not have any deductible

for 2013 and 2014 reflecting the

Roth IRAs, keep a copy of the following

contributions, you can make

additional 6% tax on excess

forms and records until all distributions

nondeductible contributions up to your

contributions on Form 5329. You

are made.

contribution limit (see

Overall

include the $7,000 distribution on your

Contribution Limit for Traditional and

Page 1 of Forms 1040 (or Forms

2015 Form 1040, line 15a, enter -0- on

Roth

IRAs, earlier). Enter on line 1 of

1040A, 1040NR, or 1040-T) filed for

line 15b, and attach a statement to your

Form 8606 your nondeductible

each year you made a nondeductible

return explaining the distribution,

contributions.

contribution to a traditional IRA.

including the fact that you filed

Forms 8606 and any supporting

amended returns for 2013 and 2014 and

Include on line 1 any repayment of a

statements, attachments, and

paid the additional 6% tax on the excess

qualified reservist distribution.

worksheets for all applicable years.

contributions for those years. The

Forms 5498, IRA Contribution

Do not include on line 1 contributions

statement indicates that the distribution

Information, or similar statements you

that you had returned to you with the

is not taxable because (a) it was made

received each year showing

related earnings (or less any loss). See

after the due dates of your 2013 and

contributions you made to a traditional

Return of IRA

Contributions, earlier.

2014 tax returns, including extensions,

IRA or Roth IRA.

(b) your total IRA contributions for each

Line 2

Forms 5498 or similar statements you

year did not exceed $5,500 ($6,500 if

Generally, if this is the first year you are

received showing the value of your

age 50 or older at the end of that year),

required to file Form 8606, enter -0-.

traditional IRAs for each year you

and (c) you did not take a deduction for

Otherwise, use the

Total Basis

Chart,

received a distribution.

the contributions, and no deduction was

later, to find the amount to enter on

Forms 1099-R or W-2P you received

allowable because you did not have any

line 2.

for each year you received a

taxable compensation for those years.

distribution.

The statement also indicates that the

However, you may need to enter an

distribution reduced your excess

amount that is more than -0- (even if this

Note. Forms 1040-T and W-2P are

contributions to -0-, as reflected on your

is the first year you are required to file

forms that were used in prior years.

2015 Form 5329. Do not file Form 8606

Form 8606) or increase or decrease the

for 2015. If you are required to file Form

amount from the chart if your basis

Specific Instructions

8606 in a year after 2015, do not include

changed because of any of the

the $7,000 you withdrew in 2015 on

following.

Name and social security number

line 2.

You had a return of excess traditional

(SSN). If you file a joint return, enter

IRA contributions (see

Return of Excess

Amending Form 8606

only the name and SSN of the spouse

Traditional IRA

Contributions, earlier).

whose information is being reported on

Generally, after you file your return, you

Incident to divorce, you transferred or

Form 8606. If both you and your spouse

can change a nondeductible

received part or all of a traditional IRA

are required to file Form 8606, file a

contribution to a traditional IRA to a

(see the last bulleted item under

Line

separate Form 8606 for each of you.

deductible contribution or vice versa if

later).

you make the change within the time

You rolled over any nontaxable

Part I—Nondeductible

limit for filing Form 1040X, Amended

portion of your qualified retirement plan

Contributions to

U.S. Individual Income Tax Return (see

to a traditional or SEP IRA that was not

Traditional IRAs and

When To File in the Form 1040X

previously reported on Form 8606,

Instructions). You also may be able to

line 2. Include the nontaxable portion on

Distributions From

make a

recharacterization

(discussed

line 2.

Traditional, SEP, and

earlier). If necessary, complete a new

Line 4

SIMPLE IRAs

Form 8606 showing the revised

If you made contributions to traditional

information and file it with Form 1040X.

Line 1

IRAs for 2015 in 2015 and 2016 and you

have both deductible and nondeductible

If you used the IRA Deduction

contributions, you can choose to treat

Worksheet in the Form 1040, 1040NR,

the contributions made in 2015 first as

Instructions for Form 8606 (2015)

Instructions For Form 8606 - 2015 Page 6

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