Specific Instructions

Name and social security number (SSN).   If you file a joint return, enter only the name and SSN of the spouse whose information is being reported on Form 8606. If both you and your spouse are required to file Form 8606, file a separate Form 8606 for each of you.

Part I—Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE IRAs

Line 1

If you used the IRA Deduction Worksheet in the Form 1040, 1040NR, or 1040A instructions, subtract line 12 (line 10 for Form 1040A) of the worksheet (or the amount you chose to deduct on Form 1040 or Form 1040NR, line 32, or Form 1040A, line 17, if less) from the smaller of line 10 or line 11 (line 8 or line 9 for Form 1040A) of the worksheet. Enter the result on line 1 of Form 8606. You cannot deduct the amount included on line 1.

If you used the worksheet Figuring Your Reduced IRA Deduction for 2013 in Pub. 590, enter on line 1 of Form 8606 any nondeductible contributions from the appropriate lines of that worksheet.

If you did not have any deductible contributions, you can make nondeductible contributions up to your contribution limit. Enter on line 1 of Form 8606 your nondeductible contributions.

Include on line 1 any repayment of a qualified reservist distribution.

Do not include on line 1 contributions that you had returned to you with the related earnings (or less any loss). See Return of IRA Contributions, earlier.

Line 2

If this is the first year you are required to file Form 8606, enter -0-. Otherwise, use the Total Basis Chart, later, to find the amount to enter on line 2.

However, if you are required to file this year, you may need to enter an amount other than -0- or adjust the amount from the chart if your basis changed because of any of the following.

  • You had a return of excess traditional IRA contributions (see Return of Excess Traditional IRA Contributions, earlier).

  • Incident to divorce, you transferred or received part or all of a traditional IRA (see the last bulleted item under Line 7, later).

  • You rolled over any nontaxable portion of your qualified retirement plan to a traditional or SEP IRA that was not previously reported on Form 8606, line 2. Include the nontaxable portion on line 2.

Line 4

If you made contributions to traditional IRAs for 2013 in 2013 and 2014 and you have both deductible and nondeductible contributions, you can choose to treat the contributions made in 2013 first as nondeductible contributions and then as deductible contributions, or vice versa.

Example. You made contributions for 2013 of $2,000 in May 2013 and $2,000 in January 2014, of which $3,000 are deductible and $1,000 are nondeductible. You choose $1,000 of your contribution in 2013 to be nondeductible. You enter the $1,000 on line 1, but not line 4, and it becomes part of your basis for 2013.

Although the contributions to traditional IRAs for 2013 that you made from January 1, 2014, through April 15, 2014, can be treated as nondeductible, they are not included in figuring the nontaxable part of any distributions you received in 2013.

Line 6

Enter the total value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2013, plus any outstanding rollovers. A statement should be sent to you by January 31, 2014, showing the value of each IRA on December 31, 2013. However, if you recharacterized any amounts, enter on line 6 the total value, taking into account all recharacterizations, including recharacterizations made after December 31, 2013.

For line 6, a rollover is a tax-free distribution from one traditional, SEP, or SIMPLE IRA that is contributed to another traditional, SEP, or SIMPLE IRA. The rollover must be completed within 60 days of receiving the distribution from the first IRA. An outstanding rollover is any amount distributed in 2013 after November 1, 2013, that was rolled over in 2014, but within the 60-day rollover period.

The IRS may waive the 60-day requirement if failing to waive it would be against equity or good conscience, such as situations where a casualty, disaster, or other events beyond your reasonable control prevented you from meeting the 60-day requirement. Also, the 60-day period may be extended if you had a frozen deposit. See Can You Move Retirement Plan Assets? in chapter 1 of Pub. 590 for details.

Note. Do not include a rollover from a traditional, SEP, or SIMPLE IRA to a qualified retirement plan even if it was an outstanding rollover.

Total Basis Chart

IF the last Form 8606 you filed was for... THEN enter on line 2...
A year after 2000 and before 2013 The amount from line 14 of that Form 8606
A year after 1992 and before 2001 The amount from line 12 of that Form 8606
A year after 1988 and before 1993 The amount from line 14 of that Form 8606
1988 The total of the amounts on lines 7 and 16 of that Form 8606
1987 The total of the amounts on lines 4 and 13 of that Form 8606

Line 7

If you received a distribution in 2013 from a traditional, SEP, or SIMPLE IRA, and you also made contributions for 2013 to a traditional IRA that may not be fully deductible because of the income limits, you must make a special computation before completing the rest of this form. For details, including how to complete Form 8606, see Are Distributions Taxable? in chapter 1 of Pub. 590.

Do not include any of the following on line 7.

  • Distributions that you converted to a Roth IRA.

  • Recharacterizations.

  • Distributions that you rolled over by December 31, 2013, and any outstanding rollovers included on  
    line 6.

  • Distributions you rolled over to a qualified retirement plan.

  • A one-time distribution to fund an HSA. For details, see Pub. 969, Health Savings Accounts and Other Tax-Favored Health Plans.

  • Distributions that are treated as a return of contributions under Return of IRA Contributions, earlier.

  • Qualified charitable distributions (QCD) (including QCDs you made in January 2013 but elected to treat as made in 2012). For details, see Are Distributions Taxable? in chapter 1 of Pub. 590.

  • Distributions that are treated as a return of excess contributions under Return of Excess Traditional IRA Contributions, earlier.

  • Distributions of excess contributions due to incorrect rollover information. If an excess contribution in your traditional IRA is the result of a rollover from a qualified retirement plan and the excess occurred because the information the plan was required to give you was incorrect, the distribution of the excess contribution is not taxable. Attach a statement to your return explaining the distribution and include the amount of the distribution on Form 1040, line 15a; Form 1040A, line 11a; or Form 1040NR, line 16a. See Pub. 590 for more details.

  • Distributions that are incident to divorce. The transfer of part or all of your traditional, SEP, or SIMPLE IRA to your spouse under a divorce or separation agreement is not taxable to you or your spouse. If this transfer results in a change in the basis of the traditional IRA of either spouse, both spouses must file Form 8606 and show the increase or decrease in the amount of basis on line 2. Attach a statement explaining this adjustment. Include in the statement the character of the amounts in the traditional IRA, such as the amount attributable to nondeductible contributions. Also, include the name and social security number of the other spouse.

Line 8

If, in 2013, you converted any amounts from traditional, SEP, or SIMPLE IRAs to a Roth IRA, enter on line 8 the net amount you converted. To figure that amount, subtract from the total amount converted in 2013 any portion that you recharacterized back to traditional, SEP, or SIMPLE IRAs in 2013 or 2014 (see Recharacterizations, earlier). Do not take into account related earnings that were transferred with the recharacterized amount or any loss that occurred while the amount was in the Roth IRA. See item 1 under Reporting recharacterizations, earlier, for details.

Line 15

If you were under age 59½ at the time you received distributions from your traditional, SEP, or SIMPLE IRA, there generally is an additional 10% tax on the portion of the distribution that is included in income (25% for a distribution from a SIMPLE IRA during the first 2 years). See the instructions for Form 1040, line 58, or the instructions for Form 1040NR, line 56.

Part II—2013 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs

Complete Part II if you converted part or all of your traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013, excluding any portion you recharacterized. See item 1 under Reporting recharacterizations, earlier, for details.

Limit on number of conversions.   If you converted an amount from a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2013 and then recharacterized the amount back to a traditional, SEP, or SIMPLE IRA, you cannot reconvert that amount until the later of January 1, 2014, or 30 days after the recharacterization. See Can You Move Retirement Plan Assets? in chapter 1 of Pub. 590 for details.

Line 16

If you did not complete line 8, see the instructions for that line. Then, enter on line 16 the amount you would have entered on line 8 had you completed it.

Line 17

If you did not complete line 11, enter on line 17 the amount from line 2 (or the amount you would have entered on line 2 if you had completed that line) plus any contributions included on line 1 that you made before the conversion.

Part III—Distributions From Roth IRAs

Complete Part III to figure the taxable part, if any, of your 2013 Roth IRA distributions.

Line 19

Do not include on line 19 any of the following.

  • Distributions that you rolled over, including distributions made in 2013 and rolled over after December 31, 2013 (outstanding rollovers).

  • Recharacterizations.

  • Distributions that are a return of contributions under Return of IRA Contributions, earlier.

  • Distributions made on or after age 59½ if you made a contribution (including a conversion) for 2008 or an earlier year.

  • A one-time distribution to fund an HSA. For details, see Pub. 969.

  • Qualified charitable distributions (QCD) (including QCDs you made in January 2013 but elected to treat as made in 2012). For details, see Are Distributions Taxable? in chapter 1 of Pub. 590.

  • Distributions made upon death or due to disability if you made a contribution (including a conversion) for 2008 or an earlier year.

  • Distributions that are incident to divorce. The transfer of part or all of your Roth IRA to your spouse under a divorce or separation agreement is not taxable to you or your spouse.

If, after considering the items above, you do not have an amount to enter on line 19, do not complete Part III; your Roth IRA distribution(s) is not taxable. Instead, include your total Roth IRA distribution(s) on Form 1040, line 15a; Form 1040A, line 11a; or Form 1040NR, line 16a.

Line 20

If you had a qualified first-time homebuyer distribution from your Roth IRA and you made a contribution (including a conversion) to a Roth IRA for 2008 or an earlier year, enter the amount of your qualified expenses on line 20, but do not enter more than $10,000. For details, see Are Distributions Taxable? in chapter 2 of Pub. 590.

Line 22

Figure the amount to enter on line 22 as follows.

  • If you did not take a Roth IRA distribution before 2013 (other than an amount rolled over or recharacterized or a returned contribution), enter on line 22 the total of all your regular contributions to Roth IRAs for 1998 through 2013 (excluding rollovers from other Roth IRAs and any contributions that you had returned to you), adjusted for any recharacterizations.

  • If you did take such a distribution before 2013, see the Basis in Regular Roth IRA Contributions Worksheet—Line 22, later, to figure the amount to enter.

  • Increase the amount on line 22 by any amount rolled in from a designated Roth account that is treated as investment in the contract.

  • Increase or decrease the amount on line 22 by any basis received or transferred incident to divorce. Also attach a statement similar to the one explained in the last bulleted item under Line 7, earlier.

  • Increase the amount on line 22 by the amounts received as a military gratuity or SGLI payment that was rolled over to your Roth IRA.

  • Increase the amount on line 22 by any amount received as qualified settlement income in connection with the Exxon Valdez litigation and rolled over to your Roth IRA.

  • Increase the amount on line 22 by any “airline payments” you received as a result of your employment with an airline that you rolled over to your Roth IRA. However, do not include the amounts attributable to airline payments that you transferred from a Roth IRA to a traditional IRA because of the FAA Modernization and Reform Act of 2012.

Line 23

Generally, there is an additional 10% tax on 2013 distributions from a Roth IRA that are shown on line 23. The additional tax is figured on Form 5329, Part I. See the instructions for Form 5329, line 1, for details and exceptions.

Line 24

Figure the amount to enter on line 24 as follows.

  • If you have never made a Roth IRA conversion or rolled over an amount from a qualified retirement plan to a Roth IRA, enter -0- on line 24.

  • If you took a Roth IRA distribution (other than an amount rolled over or recharacterized or a returned contribution) before 2013 in excess of your basis in regular Roth IRA contributions, see the Basis in Roth IRA Conversions and Rollovers From Qualified Retirement Plans to Roth IRAs—Line 24 chart, later, to figure the amount to enter on line 24.

  • If you did not take such a distribution before 2013, enter on line 24 the total of all your conversions to Roth IRAs (other than amounts recharacterized). These amounts are shown on line 14c of your 1998, 1999, and 2000 Forms 8606 and line 16 of your 2001 through 2013 Forms 8606. Also include on line 24 any amounts rolled over from a qualified retirement plan to a Roth IRA for 2008, 2009, and 2011 to 2013 reported on your Form 1040, Form 1040A, or Form 1040NR, and line 21 of your 2010 Form 8606.

  • Increase or decrease the amount on line 24 by any basis received or transferred incident to divorce. Also attach a statement similar to the one explained in the last bulleted item under Line 7, earlier.


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