8606 Nondeductible IRAs

2007 Form 8606, Nondeductible IRAs
Purpose: This is the first circulated draft of the 2007 Form 8606, Nondeductible
IRAs, for your review and comments. The major changes are listed below.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 8606 is available at:
http://www.irs.gov/pub/irs-pdf/f8606.pdf
Instructions: The 2007 Instructions for Form 8606 will be circulated at a later
date. The 2006 instructions are available at:
http://www.irs.gov/pub/irs-pdf/i8606.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments by May 18, 2007.
Gregg M. Lynam
Tax Forms and Publications
SE:W:CAR:MP:T:I:S

Email: [email protected]
Phone: 202- 622- 4056
Fax: 202- 622- 5022

Changes to the 2007 Form 8606
•

After 2006, qualified hurricane distributions cannot be made.
o References to qualified hurricane distributions were deleted from
the text in Part I, line 6, and line 7. ( P.L. 109-135; IRC 1400Q)
o Line 15b and line 25b were deleted because qualified hurricane
distributions cannot be made after 2006. Line 15a and line 15c
were combined and line 25a and line 25c were combined.
(P.L. 109-135; IRC 1400Q)

•

For 2007, a one-time distribution from an IRA to fund an HSA can be
made. This was added to the text in Part I, line 7, and Part III.
(P.L. 109-432, sec. 307; IRC 408(d)(9))

•

Year references were updated throughout.

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8606, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") x 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8606

Action

Revised proofs
requested

OMB No. 1545-0074

2007

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See separate instructions.

Attachment
Sequence No.

Attach to Form 1040, Form 1040A, or Form 1040NR.

Name. If married, file a separate form for each spouse required to file Form 8606. See page 5 of the instructions.

Part I

©

Signature

O.K. to print

Nondeductible IRAs

Department of the Treasury
Internal Revenue Service (99)

Fill in Your Address Only
If You Are Filing This
Form by Itself and Not
With Your Tax Return

Date

48

Your social security number

Home address (number and street, or P.O. box if mail is not delivered to your home)

Apt. no.

City, town or post office, state, and ZIP code

Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE IRAs
Complete this part only if one or more of the following apply.
● You made nondeductible contributions to a traditional IRA for 2007.
● You took distributions from a traditional, SEP, or SIMPLE IRA in 2007 and you made nondeductible contributions to
a traditional IRA in 2007 or an earlier year. For this purpose, a distribution does not include a rollover, qualified
charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain
contributions.
● You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2007 (excluding any portion
you recharacterized) and you made nondeductible contributions to a traditional IRA in 2007 or an earlier year.

1
2
3

Enter your nondeductible contributions to traditional IRAs for 2007, including those made for
2007 from January 1, 2008, through April 15, 2008 (see page 5 of the instructions)
Enter your total basis in traditional IRAs (see page 5 of the instructions)
Add lines 1 and 2
In 2007, did you take a
distribution from traditional,
SEP, or SIMPLE IRAs, or
make a Roth IRA conversion?

4
5
6

7

8

9
10
11
12
13
14
15

No

©

Yes

©

1
2
3

Enter the amount from line 3 on
line 14. Do not complete the rest
of Part I.
Go to line 4.

Enter those contributions included on line 1 that were made from January 1, 2008, through
April 15, 2008
Subtract line 4 from line 3
Enter the value of all your traditional, SEP, and SIMPLE IRAs as of
December 31, 2007, plus any outstanding rollovers (see page 5 of the
instructions)

6

Enter your distributions from traditional, SEP, and SIMPLE IRAs in
2007. Do not include rollovers, qualified charitable distributions, a
one-time distribution to fund an HSA, conversions to a Roth IRA,
certain returned contributions, or recharacterizations of traditional IRA
contributions (see page 6 of the instructions)

7

Enter the net amount you converted from traditional, SEP, and SIMPLE
IRAs to Roth IRAs in 2007. Do not include amounts converted that
you later recharacterized (see page 6 of the instructions). Also enter
this amount on line 16
9
Add lines 6, 7, and 8
Divide line 5 by line 9. Enter the result as a decimal rounded to at
least 3 places. If the result is 1.000 or more, enter “1.000”
Multiply line 8 by line 10. This is the nontaxable portion of the amount
you converted to Roth IRAs. Also enter this amount on line 17

4
5

8

10

3

.

11

Multiply line 7 by line 10. This is the nontaxable portion of your
12
distributions that you did not convert to a Roth IRA
Add lines 11 and 12. This is the nontaxable portion of all your distributions
Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2007 and earlier years
Taxable amount. Subtract line 12 from line 7. Also include this amount on Form 1040, line 15b;
Form 1040A, line 11b; or Form 1040NR, line 16b
Note: You may be subject to an additional 10% tax on the amount on line 15 if you were under
age 591⁄ 2 at the time of the distribution (see page 6 of the instructions).

For Privacy Act and Paperwork Reduction Act Notice, see page 8 of the instructions.

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Cat. No. 63966F

Form

8606

(2007)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8606, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8606 (2007)

Part II

Page

2

2007 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs

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Complete this part if you converted part or all of your traditional, SEP, and SIMPLE IRAs to a Roth IRA in 2007 (excluding
any portion you recharacterized).
Caution: If your modified adjusted gross income is over $100,000 or you are married filing separately and you lived with
your spouse at any time in 2007, you cannot convert any amount from traditional, SEP, or SIMPLE IRAs to Roth IRAs
for 2007. If you erroneously made a conversion, you must recharacterize (correct) it (see page 6 of the instructions).
16

17

18

If you completed Part I, enter the amount from line 8. Otherwise, enter the net amount you
converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2007. Do not include amounts
you later recharacterized back to traditional, SEP, or SIMPLE IRAs in 2007 or 2008 (see page 7
of the instructions)

16

If you completed Part I, enter the amount from line 11. Otherwise, enter your basis in the amount
on line 16 (see page 7 of the instructions)

17

Taxable amount. Subtract line 17 from line 16. Also include this amount on Form 1040,
line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b

18

Part III

Distributions From Roth IRAs

Complete this part only if you took a distribution from a Roth IRA in 2007. For this purpose, a distribution does not
include a rollover, qualified charitable distribution, one-time distribution to fund an HSA, recharacterization, or return of
certain contributions (see page 7 of the instructions).
19

Enter your total nonqualified distributions from Roth IRAs in 2007 including any qualified first-time
homebuyer distributions (see page 7 of the instructions)

19

Qualified first-time homebuyer expenses (see page 7 of the instructions). Do not enter more
than $10,000

20

21

Subtract line 20 from line 19. If zero or less, enter -0- and skip lines 22 through 25

21

22

Enter your basis in Roth IRA contributions (see page 7 of the instructions)

22

23

Subtract line 22 from line 21. If zero or less, enter -0- and skip lines 24 and 25. If more than zero,
you may be subject to an additional tax (see page 7 of the instructions)

23

24

Enter your basis in Roth IRA conversions (see page 7 of the instructions)

24

25

Taxable amount. Subtract line 24 from line 23. If zero or less, enter -0-. Also include this amount
on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b

25

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Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my
knowledge and belief, it is true, correct, and complete.

Sign Here Only If You
Are Filing This Form
by Itself and Not With
Your Tax Return

Paid
Preparer’s
Use Only

Preparer’s
signature

©

©

©

Your signature

Firm’s name (or yours
if self-employed),
address, and ZIP code

Date

©

Date
Preparer’s SSN or PTIN

Check if selfemployed
EIN
Phone no.

(

)
Form

8606

(2007)