U.S. Individual Income Tax Return

2010

Department of the Treasury
Internal Revenue Service

Instructions for Form 8606
Nondeductible IRAs
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
What’s New
Modified AGI limit for Roth IRA
contributions increased. You can
contribute to a Roth IRA for 2010 only if
your 2010 modified adjusted gross
income (AGI) for Roth IRA purposes is
less than:
• $177,000 if married filing jointly or
qualifying widow(er),
• $120,000 if single, head of
household, or married filing separately
and you did not live with your spouse at
any time in 2010, or
• $10,000 if married filing separately
and you lived with your spouse at any
time in 2010.
See Roth IRAs on page 2.
New rules for rollovers and
conversions from eligible retirement
plans to Roth IRAs. Starting in 2010,
the $100,000 modified AGI limit on
rollovers and conversions from eligible
retirement plans to Roth IRAs is
eliminated and married taxpayers filing
a separate return can now roll over or
convert amounts to a Roth IRA. Unless
you elect otherwise, half of the income
as the result of a rollover or conversion
in 2010 is included in income in 2011
and the other half in 2012. Conversions
from IRAs are reported in Part II and
rollovers from qualified retirement plans
are reported in Part III. For more
details, see Pub. 590 or Pub. 575.
In-plan rollovers to designated Roth
accounts. After September 27, 2010,
if you are a plan participant in a 401(k)
or 403(b) plan, your plan may permit
you to roll over amounts in those plans
to a designated Roth account within the
same plan (in-plan Roth rollover). The
rollover of any untaxed amounts must
be included in income. Unless you elect
otherwise, half of the income as the
result of a rollover in 2010 is included in
income in 2011 and the other half in
2012. These rollovers are reported in
Part III. For more details, see Pub. 575.
Qualified charitable distributions.
The provision that excludes up to
$100,000 of qualified charitable
distributions from income has been
extended. If you elect, a qualified
charitable distribution made in January
2011, will be treated as made in 2010.
For more details, see Pub. 590.

Purpose of Form
Use Form 8606 to report:

• Nondeductible contributions you

made to traditional IRAs,
• Distributions from traditional, SEP, or
SIMPLE IRAs, if you have ever made
nondeductible contributions to
traditional IRAs,
• Distributions from Roth IRAs,
• Conversions from traditional, SEP, or
SIMPLE IRAs to Roth IRAs,
• Rollovers from qualified retirement
plans (other than designated Roth
accounts) to Roth IRAs,
• In-plan Roth rollovers, and
• Certain distributions from designated
Roth accounts allocable to in-plan Roth
rollovers.
Additional information. See Pub.
590 for more details on IRAs. See Pub.
575 for more details on in-plan Roth
rollovers and qualified retirement plans.
If you received distributions from
a traditional, SEP, or SIMPLE
IRA in 2010 and you have never
made nondeductible contributions
(including nontaxable amounts you
rolled over from a qualified retirement
plan) to traditional IRAs, do not report
the distributions on Form 8606. Instead,
see the instructions for Form 1040,
lines 15a and 15b; Form 1040A, lines
11a and 11b; or Form 1040NR, lines
16a and 16b. Also, to find out if any of
your contributions to traditional IRAs
are deductible, see the instructions for
Form 1040, line 32; Form 1040A, line
17; or Form 1040NR, line 32.
TIP

Who Must File

File Form 8606 if any of the following
apply.
• You made nondeductible
contributions to a traditional IRA for
2010, including a repayment of a
qualified reservist distribution.
• You received distributions from a
traditional, SEP, or SIMPLE IRA in
2010 and your basis in traditional IRAs
is more than zero. For this purpose, a
distribution does not include a rollover,
qualified charitable distribution
(including a qualified charitable
distribution made in January 2011, that
you elect to treat as made in 2010),
one-time distribution to fund an HSA,
conversion, recharacterization, or return
of certain contributions.
• You converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2010 (unless you
recharacterized the entire
conversion — see page 3).
• You rolled over an amount from a
qualified retirement plan (other than a
designated Roth account) to a Roth
IRA in 2010 (unless you
Cat. No. 25399E

recharacterized the entire
rollover — see page 3).
• You received distributions from a
Roth IRA in 2010 (other than a rollover,
recharacterization, or return of certain
contributions — see page 7).
• You rolled over an amount from your
401(k) or 403(b) plan to a designated
Roth account within the same plan
(in-plan Roth rollover) after September
27, 2010. See the instructions for Part
III on page 7.
• You received a distribution from your
designated Roth account after
September 27, 2010, that is allocable to
an in-plan Roth rollover (only if the
in-plan Roth rollover is included in
income in 2011 and 2012). See the
instructions for Part IV on page 7.
• You made a repayment of a qualified
disaster recovery assistance, or
qualified recovery assistance
distribution that is attributable to
previously nondeductible contributions.
• You received a distribution from an
inherited Roth IRA that was not a
qualified distribution or from an
inherited traditional IRA that has basis
or you rolled over an inherited plan
account to a Roth IRA.
Note. If you recharacterized a 2010
Roth IRA contribution as a traditional
IRA contribution, or vice versa, treat the
contribution as having been made to
the second IRA, not the first IRA. See
page 3.
You do not have to file Form
8606 solely to report regular
contributions to Roth IRAs. But
see What Records Must I Keep? on
page 5.
TIP

When and Where To File

File Form 8606 with your 2010 Form
1040, 1040A, or 1040NR. If you are not
required to file an income tax return but
are required to file Form 8606, sign
Form 8606 and send it to the Internal
Revenue Service at the same time and
place you would otherwise file Form
1040, 1040A, or 1040NR.

Definitions
Deemed IRAs

A qualified employer plan (retirement
plan) can maintain a separate account
or annuity under the plan (a deemed
IRA) to receive voluntary employee
contributions. If in 2010 you had a
deemed IRA, use the rules for either a
traditional IRA or a Roth IRA depending
on which type it was. See Pub. 590 for
more details.

Traditional IRAs

For purposes of Form 8606, a
traditional IRA is an individual
retirement account or an individual
retirement annuity other than a SEP,
SIMPLE, or Roth IRA.
Contributions. An overall contribution
limit applies to traditional IRAs and
Roth IRAs. See Overall Contribution
Limit for Traditional and Roth IRAs on
page 3. Contributions to a traditional
IRA may be fully deductible, partially
deductible, or completely
nondeductible.
Basis. Your basis in traditional IRAs is
the total of all your nondeductible
contributions and nontaxable amounts
included in rollovers made to traditional
IRAs minus the total of all your
nontaxable distributions, adjusted if
necessary (see the instructions for line
2 on page 5).

!

CAUTION

Keep track of your basis to
figure the nontaxable part of
your future distributions.

SEP IRAs

A simplified employee pension (SEP) is
an employer-sponsored plan under
which an employer can make
contributions to traditional IRAs for its
employees. If you make contributions to
that IRA (excluding employer
contributions you make if you are
self-employed), they are treated as
contributions to a traditional IRA and
may be deductible or nondeductible.
SEP IRA distributions are reported in

the same manner as traditional IRA
distributions.

SIMPLE IRAs

Your participation in your employer’s
SIMPLE IRA plan does not prevent you
from making contributions to a
traditional or Roth IRA.

Roth IRAs

A Roth IRA is similar to a traditional
IRA, but has the following features.
• Contributions are never deductible.
• Contributions can be made after the
owner reaches age 701/2.
• No minimum distributions are
required during the Roth IRA owner’s
lifetime.
• Qualified distributions are generally
not includible in income. However, see
Certain qualified distributions (other
than qualified first-time homebuyer
distributions) on page 8 for an
exception.
Qualified distribution. Generally, a
qualified distribution is any distribution
made:
• On or after age 591/2,
• Upon death,
• Due to disability, or
• For qualified first-time homebuyer
expenses.
Exception. Any distribution made
during the 5-year period beginning with
the first year for which you made a
Roth IRA contribution or conversion
(rollover in the case of a qualified
retirement plan) is not a qualified
distribution, and may be taxable.

Maximum Roth IRA Contribution Worksheet (keep for your records)
Caution: If married filing jointly and the combined taxable compensation (defined on page
3) for you and your spouse is less than $10,000 ($11,000 if one spouse is 50 or older at
the end of 2010; $12,000 if both spouses are 50 or older at the end of 2010), do not use
this worksheet. Instead, see Pub. 590 for special rules.
1. If married filing jointly, enter $5,000 ($6,000 if age 50 or older at
the end of 2010). All others, enter the smaller of $5,000
($6,000 if age 50 or older at the end of 2010) or your taxable
compensation (defined on page 3) . . . . . . . . . . . . . . . . . . . .
2. Enter your total contributions to traditional IRAs for 2010 . . . . .
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter: $177,000 if married filing jointly or qualifying widow(er);
$10,000 if married filing separately and you lived with your
spouse at any time in 2010. All others, enter $120,000 . . . . . .
5. Enter your modified AGI for Roth IRA purposes (see this page)
6. Subtract line 5 from line 4. If zero or less, stop here; you may
not contribute to a Roth IRA for 2010. See
Recharacterizations on page 3 if you made Roth IRA
contributions for 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. If line 4 above is $120,000, enter $15,000; otherwise, enter
$10,000. If line 6 is more than or equal to line 7, skip lines 8 and
9 and enter the amount from line 3 on line 10 . . . . . . . . . . . .
8. Divide line 6 by line 7 and enter the result as a decimal
(rounded to at least 3 places). If the result is 1.000 or more,
enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Multiply line 1 by line 8. If the result is not a multiple of $10,
increase it to the next multiple of $10 (for example, increase
$490.30 to $500). Enter the result, but not less than $200 . . . .
10. Maximum 2010 Roth IRA Contribution. Enter the smaller of
line 3 or line 9. See Recharacterizations on page 3 if you
contributed more than this amount to Roth IRAs for 2010 . . . .

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1.
2.
3.
4.
5.

6.
7.

Contributions. You can contribute to
a Roth IRA for 2010 only if your 2010
modified adjusted gross income (AGI)
for Roth IRA purposes is less than:
• $10,000 if married filing separately
and you lived with your spouse at any
time in 2010,
• $177,000 if married filing jointly or
qualifying widow(er), or
• $120,000 if single, head of
household, or if married filing
separately and you did not live with
your spouse at any time in 2010.
Use the Maximum Roth IRA
Contribution Worksheet below to figure
the maximum amount you can
contribute to a Roth IRA for 2010. If you
are married filing jointly, complete the
worksheet separately for you and your
spouse.

!

If you contributed too much, see
Recharacterizations on page 3.

CAUTION

Modified AGI for Roth IRA purposes.
First, figure your AGI (Form 1040, line
38; Form 1040A, line 22; or Form
1040NR, line 37). Then, refigure it by:
1. Subtracting the following.
a. Roth IRA conversions included
on Form 1040, line 15b; Form 1040A,
line 11b; or Form 1040NR, line 16b.
b. Roth IRA rollovers from qualified
retirement plans included on Form
1040, line 16b; Form 1040A, line 12b;
or Form 1040NR, line 17b.
2. Adding the following.
a. IRA deduction from Form 1040,
line 32; Form 1040A, line 17; or Form
1040NR, line 32.
b. Student loan interest deduction
from Form 1040, line 33; Form 1040A,
line 18; or Form 1040NR, line 33.
c. Tuition and fees deduction from
Form 1040, line 34; or Form 1040A,
line 19.
d. Domestic production activities
deduction from Form 1040, line 35; or
Form 1040NR, line 34.
e. Exclusion of interest from Form
8815, Exclusion of Interest From Series
EE and I U.S. Savings Bonds Issued
After 1989.
f. Exclusion of employer-provided
adoption benefits from Form 8839,
Qualified Adoption Expenses.
g. Foreign earned income exclusion
from Form 2555, Foreign Earned
Income, or Form 2555-EZ, Foreign
Earned Income Exclusion.
h. Foreign housing exclusion or
deduction from Form 2555.
When figuring modified AGI for
Roth IRA purposes, you may
have to refigure items based on
modified AGI, such as taxable social
security benefits and passive activity
losses allowed under the special
allowance for rental real estate
activities. See Can You Contribute to a
Roth IRA? in Pub. 590 for details.

!

CAUTION

8.
9.
10.

Distributions. See the instructions for
Part IV on page 7.
Instructions for Form 8606 (2010)

Overall Contribution Limit for
Traditional and Roth IRAs
If you are not married filing jointly, your
limit on contributions to traditional and
Roth IRAs is the smaller of $5,000
($6,000 if age 50 or older at the end of
2010) or your taxable compensation
(defined below). If you are married filing
jointly, your contribution limit is
generally $5,000 ($6,000 if age 50 or
older at the end of 2010) and your
spouse’s contribution limit is $5,000
($6,000 if age 50 or older at the end of
2010) as well. But if the combined
taxable compensation of both you and
your spouse is less than $10,000
($11,000 if one spouse is 50 or older at
the end of 2010; $12,000 if both
spouses are 50 or older at the end of
2010), see Pub. 590 for special rules.
This limit does not apply to employer
contributions to a SEP or SIMPLE IRA.
Note. Rollovers, Roth IRA
conversions, Roth IRA rollovers from
qualified retirement plans, and
repayments of qualified disaster
recovery assistance, qualified recovery
assistance, and qualified reservist
distributions do not affect your
contribution limit.
The amount you can contribute
to a Roth IRA may also be
CAUTION
limited by your modified AGI
(see Contributions and the Maximum
Roth IRA Contribution Worksheet on
page 2).
Taxable compensation includes the
following.
• Wages, salaries, tips, etc. If you
received a distribution from a
nonqualified deferred compensation
plan or nongovernmental section 457
plan that is included in Form W-2, box
1, or in Form 1099-MISC, box 7, do not
include that distribution in taxable
compensation. The distribution should
be shown in (a) Form W-2, box 11, (b)
Form W-2, box 12, with code Z, or (c)
Form 1099-MISC, box 15b. If it is not,
contact your employer for the amount
of the distribution.
• Nontaxable combat pay if you were a
member of the U.S. Armed Forces.
• Self-employment income. If you are
self-employed (a sole proprietor or a
partner), taxable compensation is your
net earnings from your trade or
business (provided your personal
services are a material
income-producing factor) reduced by
your deduction for contributions made
on your behalf to retirement plans and
the deduction allowed for one-half of
your self-employment tax. Also, you
must add back any self-employed
health insurance deduction you used in
figuring the amount to enter on
Schedule SE, line 3.
• Alimony and separate maintenance.
See Pub. 590 for details.

!

Recharacterizations

Generally, you can recharacterize
(correct) an IRA contribution, Roth IRA
conversion, or a Roth IRA rollover from
Instructions for Form 8606 (2010)

a qualified retirement plan by making a
trustee-to-trustee transfer from one IRA
to another type of IRA.
Trustee-to-trustee transfers are made
directly between financial institutions or
within the same financial institution.
You generally must make the transfer
by the due date of your return
(including extensions) and reflect it on
your return. However, if you timely filed
your return without making the transfer,
you can make the transfer within 6
months of the due date of your return,
excluding extensions. If necessary, file
an amended return reflecting the
transfer (see page 5). Write “Filed
pursuant to section 301.9100-2” on the
amended return.
Reporting recharacterizations. Any
recharacterized conversion or Roth IRA
rollover from a qualified retirement plan
will be treated as though the conversion
or rollover had not occurred. Any
recharacterized contribution will be
treated as having been originally
contributed to the second IRA, not the
first IRA. The amount transferred must
include related earnings or be reduced
by any loss. In most cases, the related
earnings that you must transfer are
figured by your IRA trustee or
custodian. If you need to figure the
related earnings, see How Do You
Recharacterize a Contribution? in Pub.
590. Any earnings or loss that occurred
in the first IRA will be treated as having
occurred in the second IRA. You
cannot deduct any loss that occurred
while the funds were in the first IRA.
Also, you cannot take a deduction for a
contribution to a traditional IRA if the
amount is later recharacterized. The
following discussion explains how to
report the four different types of
recharacterizations, including the
statement that must be attached to your
return explaining the recharacterization.
1. You converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2010 and later
recharacterized all or part of the
amount back to a traditional, SEP, or
SIMPLE IRA. If you only
recharacterized part of the amount
converted, report the amount not
recharacterized on Form 8606. If you
recharacterized the entire amount, do
not report the recharacterization on
Form 8606. In either case, attach a
statement to your return explaining the
recharacterization and include the
amount converted from the traditional,
SEP, or SIMPLE IRA in the total on
Form 1040, line 15a; Form 1040A, line
11a; or Form 1040NR, line 16a. If the
recharacterization occurred in 2010,
also include the amount transferred
back from the Roth IRA on that line. If
the recharacterization occurred in 2011,
report the amount transferred only in
the attached statement, and not on
your 2010 or 2011 tax return (a 2011
Form 1099-R should be sent to you by
January 31, 2012, stating that you
made a recharacterization of an amount
converted in the prior year).

-3-

Example. You are married filing
jointly and converted $20,000 from your
traditional IRA to a new Roth IRA on
May 20, 2010. On April 7, 2011, you
decide to recharacterize the
conversion. The value of the Roth IRA
on that date is $19,000. You
recharacterize the conversion by
transferring that entire amount to a
traditional IRA in a trustee-to-trustee
transfer. You report $20,000 on Form
1040, line 15a. You do not include the
$19,000 on line 15a because it did not
occur in 2010 (you also do not report
that amount on your 2011 return
because it does not apply to the 2011
tax year). You attach a statement to
Form 1040 explaining that (a) you
made a conversion of $20,000 from a
traditional IRA on May 20, 2010, and
(b) you recharacterized the entire
amount, which was then valued at
$19,000, back to a traditional IRA on
April 7, 2011.
2. You made a contribution to a
traditional IRA and later recharacterized
part or all of it to a Roth IRA. If you
recharacterized only part of the
contribution, report the nondeductible
traditional IRA portion of the remaining
contribution, if any, on Form 8606, Part
I. If you recharacterized the entire
contribution, do not report the
contribution on Form 8606. In either
case, attach a statement to your return
explaining the recharacterization. If the
recharacterization occurred in 2010,
include the amount transferred from the
traditional IRA on Form 1040, line 15a;
Form 1040A, line 11a; or Form
1040NR, line 16a. If the
recharacterization occurred in 2011,
report the amount transferred only in
the attached statement.
Example. You are single, covered
by a retirement plan, and you
contributed $4,000 to a new traditional
IRA on May 27, 2010. On February 24,
2011, you determine that your 2010
modified AGI will limit your traditional
IRA deduction to $1,000. The value of
your traditional IRA on that date is
$4,400. You decide to recharacterize
$3,000 of the traditional IRA
contribution as a Roth IRA contribution,
and have $3,300 ($3,000 contribution
plus $300 related earnings) transferred
from your traditional IRA to a Roth IRA
in a trustee-to-trustee transfer. You
deduct the $1,000 traditional IRA
contribution on Form 1040. You are not
required to file Form 8606, but you
must attach a statement to your return
explaining the recharacterization. The
statement indicates that you contributed
$4,000 to a traditional IRA on May 27,
2010; recharacterized $3,000 of that
contribution on February 24, 2011, by
transferring $3,000 plus $300 of related
earnings from your traditional IRA to a
Roth IRA in a trustee-to-trustee
transfer; and that all $1,000 of the
remaining traditional IRA contribution is
deducted on Form 1040. You do not
report the $3,300 distribution from your
traditional IRA on your 2010 Form 1040
because the distribution occurred in

2011. You do not report the distribution
on your 2011 Form 1040 because the
recharacterization related to 2010 and
was explained in an attachment to your
2010 return.
3. You made a contribution to a
Roth IRA and later recharacterized part
or all of it to a traditional IRA. Report
the nondeductible traditional IRA
portion, if any, on Form 8606, Part I. If
you did not recharacterize the entire
contribution, do not report the
remaining Roth IRA portion of the
contribution on Form 8606. Attach a
statement to your return explaining the
recharacterization. If the
recharacterization occurred in 2010,
include the amount transferred from the
Roth IRA on Form 1040, line 15a; Form
1040A, line 11a; or Form 1040NR, line
16a. If the recharacterization occurred
in 2011, report the amount transferred
only in the attached statement, and not
on your 2010 or 2011 tax return.
Example. You are single, covered
by a retirement plan, and you
contributed $4,000 to a new Roth IRA
on June 16, 2010. On December 29,
2010, you determine that your 2010
modified AGI will allow a full traditional
IRA deduction. You decide to
recharacterize the Roth IRA
contribution as a traditional IRA
contribution and have $4,200, the
balance in the Roth IRA account
($4,000 contribution plus $200 related
earnings), transferred from your Roth
IRA to a traditional IRA in a
trustee-to-trustee transfer. You deduct
the $4,000 traditional IRA contribution
on Form 1040. You are not required to
file Form 8606, but you must attach a
statement to your return explaining the
recharacterization. The statement
indicates that you contributed $4,000 to
a new Roth IRA on June 16, 2010;
recharacterized that contribution on
December 29, 2010, by transferring
$4,200, the balance in the Roth IRA, to
a traditional IRA in a trustee-to-trustee
transfer; and that $4,000 of the
traditional IRA contribution is deducted
on Form 1040. You include the $4,200
distribution on your 2010 Form 1040,
line 15a.
4. You rolled over an amount from a
qualified retirement plan to a Roth IRA
in 2010 and later recharacterized all or
part of the amount to a traditional IRA.
If you only recharacterized part of the
amount rolled over, report the amount
not recharacterized on Form 8606. If
you recharacterized the entire amount,
do not report the recharacterization on
Form 8606. In either case, attach a
statement to your return explaining the
recharacterization and include the
amount of the original rollover on Form
1040, line 16a; Form 1040A, line 12a;
or Form 1040NR, line 17a. If the
recharacterization occurred in 2010,
also include the amount transferred
from the Roth IRA on Form 1040, line
15a; Form 1040A, line 11a; or Form
1040NR, line 16a. If the
recharacterization occurred in 2011,
report the amount transferred only in

the attached statement, and not on
your 2010 or 2011 tax return (a 2011
Form 1099-R should be sent to you by
January 31, 2012, stating that you
made a recharacterization of an amount
in the prior year).
Example. You are single and you
rolled over $50,000 from your 401(k)
plan to a new Roth IRA on July 20,
2010. On March 25, 2011, you decide
to recharacterize the rollover. The value
of the Roth IRA on that date is $49,000.
You recharacterize the rollover by
transferring that entire amount to a
traditional IRA in a trustee-to-trustee
transfer. You report $50,000 on Form
1040, line 16a. You do not include the
$49,000 on line 15a because it did not
occur in 2010 (you also do not report
that amount on your 2011 return
because it does not apply to the 2011
tax year). You are not required to file
Form 8606, but you must attach a
statement to Form 1040 explaining that
(a) you made a rollover of $50,000 from
a 401(k) plan to a Roth IRA on July 20,
2010, and (b) you recharacterized the
entire amount, which was then valued
at $49,000, to a traditional IRA on
March 25, 2011.

Return of IRA
Contributions

If, in 2010 or 2011, you made traditional
IRA contributions or Roth IRA
contributions for 2010 and you had
those contributions returned to you with
any related earnings (or minus any
loss) by the due date (including
extensions) of your 2010 tax return, the
returned contributions are treated as if
they were never contributed. Do not
report the contribution or distribution on
Form 8606 or take a deduction for the
contribution. However, you must report
a distribution that was contributed in
2010 and any related earnings on your
2010 Form 1040, lines 15a and 15b;
Form 1040A, lines 11a and 11b; or
Form 1040NR, lines 16a and 16b.
Attach a statement explaining the
distribution. You cannot deduct any loss
that occurred (see Pub. 590 for an
exception if you withdrew the entire
amount in all your traditional or Roth
IRAs). Also, if you were under age 591/2
at the time of a distribution with related
earnings, you generally are subject to
the additional 10% tax on early
distributions (see Form 5329, Additional
Taxes on Qualified Plans (Including
IRAs) and Other Tax-Favored
Accounts).
If you timely filed your 2010 tax
return without withdrawing a
contribution that you made in 2010, you
can still have the contribution returned
to you within 6 months of the due date
of your 2010 tax return, excluding
extensions. If you do, file an amended
return with “Filed pursuant to section
301.9100-2” written at the top. Report
any related earnings on the amended
return and include an explanation of the
withdrawal. Make any other necessary

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changes on the amended return (for
example, if you reported the
contributions as excess contributions
on your original return, include an
amended Form 5329 reflecting that the
withdrawn contributions are no longer
treated as having been contributed).
In most cases, the related earnings
that you must withdraw are figured by
your IRA trustee or custodian. If you
need to figure the related earnings on
IRA contributions that were returned to
you, see Contributions Returned Before
Due Date of Return in Pub. 590. If you
made a contribution or distribution while
the IRA held the returned contribution,
see Pub. 590.
If you made a contribution for 2009
and you had it returned to you in 2010
as described above, do not report the
distribution on your 2010 tax return.
Instead, report it on your 2009 original
or amended return in the manner
described above.
Example. On May 28, 2010, you
contributed $4,000 to your traditional
IRA. The value of the IRA was $18,000
prior to the contribution. On December
29, 2010, when you are age 57 and the
value of the IRA is $23,600, you realize
you cannot make the entire contribution
because your taxable compensation for
the year will be only $3,000. You
decide to have $1,000 of the
contribution returned to you and
withdraw $1,073 from your IRA ($1,000
contribution plus $73 earnings). You did
not make any other withdrawals or
contributions. You are not required to
file Form 8606. You deduct the $3,000
remaining contribution on Form 1040.
You include $1,073 on Form 1040, line
15a, and $73 on line 15b. You attach a
statement to your tax return explaining
the distribution. Because you properly
removed the excess contribution with
the related earnings by the due date of
your tax return, you are not subject to
the additional 6% tax on excess
contributions, reported on Form 5329.
However, because you were under age
591/2 at the time of the distribution, the
$73 of earnings is subject to the
additional 10% tax on early
distributions. You include $7.30 on
Form 1040, line 58.

Return of Excess
Traditional IRA
Contributions

The return (distribution) in 2010 of
excess traditional IRA contributions for
years prior to 2010 is not taxable if all
three of the following apply.
1. The distribution was made after
the due date, including extensions, of
your tax return for the year for which
the contribution was made (if the
distribution was made earlier, see
Return of IRA Contributions earlier).
2. The total contributions (excluding
rollovers) to your traditional and SEP
IRAs for the year for which the excess
contribution was made did not exceed:
Instructions for Form 8606 (2010)

a. $5,000 ($6,000 if age 50 or older
at the end of the year) for 2008 or
2009,
b. $4,000 ($5,000 if age 50 or older
at the end of the year) for 2007 or
2006,
c. $4,000 ($4,500 if age 50 or older
at the end of the year) for 2005,
d. $3,000 ($3,500 if age 50 or older
at the end of the year) for years after
2001 and before 2005,
e. $2,000 for years after 1996 and
before 2002, or
f. $2,250 for years before 1997.
If your total IRA contributions for the
year included employer contributions to
a SEP IRA, increase the $5,000
($6,000, if applicable), $4,000 ($5,000
or $4,500, if applicable), $3,000
($3,500, if applicable), $2,000, or
$2,250 by the smaller of the employer
contributions or $49,000 ($46,000 for
2008, $45,000 for 2007, $44,000 for
2006, $42,000 for 2005, $41,000 for
2004, $40,000 for 2003 and 2002,
$35,000 for 2001, or $30,000 for years
before 2001).
3. No deduction was allowable
(without regard to the modified AGI
limitation) or taken for the excess
contributions.
Include the total amount distributed
on Form 1040, line 15a; Form 1040A,
line 11a; or Form 1040NR, line 16a;
and attach a statement to your return
explaining the distribution. See the
example below.
If you meet these conditions and are
otherwise required to file Form 8606:
• Do not take into account the amount
of the withdrawn contributions in
figuring line 2, and
• Do not include the amount of the
withdrawn contributions on line 7.
Example. You are single, you
retired in 2007, and you had no taxable
compensation after 2007. However, you
made traditional IRA contributions (that
you did not deduct) of $3,000 in 2008
and $4,000 in 2009. In November 2010,
a tax practitioner informed you that you
had made excess contributions for
those years because you had no
taxable compensation. You withdrew
the $7,000 and filed amended returns
for 2008 and 2009 reflecting the
additional 6% tax on excess
contributions on Form 5329. You
include the $7,000 distribution on your
2010 Form 1040, line 15a, enter -0- on
line 15b, and attach a statement to your
return explaining the distribution,
including the fact that you filed
amended returns for 2008 and 2009
and paid the additional 6% tax on the
excess contributions for those years.
The statement indicates that the
distribution is not taxable because (a) it
was made after the due dates of your
2008 and 2009 tax returns, including
extensions, (b) your total IRA
contributions for each year did not
exceed $5,000 ($6,000 if age 50 or
older at the end of the year), and (c)
Instructions for Form 8606 (2010)

you did not take a deduction for the
contributions, and no deduction was
allowable because you did not have
any taxable compensation for those
years. The statement also indicates that
the distribution reduced your excess
contributions to -0-, as reflected on your
2010 Form 5329.

Amending Form 8606

After you file your return, you can
change a nondeductible contribution to
a traditional IRA to a deductible
contribution or vice versa. You also
may be able to make a
recharacterization (see page 3). If
necessary, complete a new Form 8606
showing the revised information and file
it with Form 1040X, Amended U.S.
Individual Income Tax Return.

Penalty for Not Filing

If you are required to file Form 8606 to
report a nondeductible contribution to a
traditional IRA for 2010, but do not do
so, you must pay a $50 penalty, unless
you can show reasonable cause.

Overstatement Penalty
If you overstate your nondeductible
contributions, you must pay a $100
penalty, unless you can show
reasonable cause.

What Records Must I
Keep?

To verify the nontaxable part of
distributions from your IRAs, including
Roth IRAs, keep a copy of the following
forms and records until all distributions
are made.
• Page 1 of Forms 1040 (or Forms
1040A, 1040NR, or 1040-T) filed for
each year you made a nondeductible
contribution to a traditional IRA.
• Forms 8606 and any supporting
statements, attachments, and
worksheets for all applicable years.
• Forms 5498 or similar statements
you received each year showing
contributions you made to a traditional
IRA or Roth IRA.
• Forms 5498 or similar statements
you received showing the value of your
traditional IRAs for each year you
received a distribution.
• Forms 1099-R or W-2P you received
for each year you received a
distribution.
Note. Forms 1040-T and W-2P are
forms that were used in prior years.

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.

-5-

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 2010
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. Also,
include any repayment of a qualified
disaster recovery assistance or
qualified recovery assistance
distribution that is attributable to
previously nondeductible contributions.
Do not include on line 1 contributions
that you had returned to you with the
related earnings (or less any loss). See
page 4.

Line 2

If this is the first year you are required
to file Form 8606, enter -0-. Otherwise,
use the chart on page 6 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 page 4).
• Incident to divorce, you transferred or
received part or all of a traditional IRA
(see the last bulleted item under Line 7
on page 6).
• 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.

IF the last Form
THEN enter on line
8606 you filed was 2...
for...
A year after 2000
and before 2010

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 4

If you made contributions to traditional
IRAs for 2010 in 2010 and 2011 and
you have both deductible and
nondeductible contributions, you can
choose to treat the contributions made
in 2010 first as nondeductible
contributions and then as deductible
contributions, or vice versa.
Example. You made contributions
for 2010 of $2,000 in May 2010 and
$2,000 in January 2011, of which
$3,000 are deductible and $1,000 are
nondeductible. You choose $1,000 of
your contribution in 2010 to be
nondeductible. You enter the $1,000 on
line 1, but not line 4, and it becomes
part of your basis for 2010.
Although the contributions to
traditional IRAs for 2010 that you made
from January 1, 2011, through April 18,
2011, can be treated as nondeductible,
they are not included in figuring the
nontaxable part of any distributions you
received in 2010.

Line 6

Enter the total value of all your
traditional, SEP, and SIMPLE IRAs as
of December 31, 2010, plus any
outstanding rollovers. A statement
should be sent to you by January 31,
2011, showing the value of each IRA
on December 31, 2010. However, if you
recharacterized any amounts, enter on
line 6 the total value taking into account
all recharacterizations, including
recharacterizations made after
December 31, 2010.
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 2010 after November 1,
2010, that was rolled over in 2011, 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 Pub. 590
for details.
You must reduce the amount on
line 6 by any qualified charitable
CAUTION
distributions you made in
January 2011 that you are electing to
treat as made in 2010. See Pub. 590
for more 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.

!

• 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

Line 7
If you received a distribution in
2010 from a traditional, SEP, or
CAUTION
SIMPLE IRA, and you also
made contributions for 2010 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, 2010, 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 on page 4.
• Qualified charitable distributions. For
details see, Pub. 590.
• Qualified charitable distributions you
made in January 2011, that you elect to
treat as made in 2010. For details, see
Pub. 590.
• Distributions that are treated as a
return of excess contributions under
Return of Excess Traditional IRA
Contributions on page 4.
• 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.

!

-6-

If, in 2010, 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 2010 any portion that you
recharacterized back to traditional,
SEP, or SIMPLE IRAs in 2010 or 2011
(see Recharacterizations that begins on
page 3). 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 on
page 3 for details.

Line 15

If you were under age 591/2 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—2010
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 2010,
excluding any portion you
recharacterized. See item 1 under
Reporting recharacterizations on
page 3 for details.
Limit on number of conversions. If
you converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2010 and then
recharacterized the amount back to a
traditional, SEP, or SIMPLE IRA, you
cannot reconvert that amount until the
later of January 1, 2011, or 30 days
after the recharacterization. See Pub.
590 for details.
Instructions for Form 8606 (2010)

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.

Line 19

You can include the entire taxable
amount on line 18 in your income for
2010 or spread it over 2 years (2011
and 2012). If you elect to include the
entire amount in income for 2010,
complete line 19. Otherwise, skip line
19 and complete lines 20a and 20b.
Any amount on line 20a must be
included in your income for 2011 and
any amount on line 20b must be
included in your income for 2012.
You cannot change your treatment
of the conversion after the due date
(including extensions) for your tax
return.
Note. If you check the box on line 19,
you must also check the box on line 24
for a rollover to a Roth IRA.
If the taxpayer died during 2010 after
making a conversion, the taxable
amount of the conversion may not be
spread over 2 years (2011 and 2012).
The tax return of the deceased
taxpayer must show (a) the entire
taxable amount in 2010 or (b) a
recharacterization (see page 3) of the
conversion.
Exception for surviving spouse. A
surviving spouse who is the sole
beneficiary of his or her spouse’s Roth
IRA may elect to treat the taxable
amount in the same way as the
deceased taxpayer. This election
cannot be made or changed after the
due date (including extensions) for the
spouse’s tax return which includes the
date of death.

For this purpose, a qualified
retirement plan includes a: qualified
employer plan (such as a 401(k) plan);
qualified employee annuity;
tax-sheltered annuity (403(b) plan); and
an eligible state or local government
section 457(b) plan. An IRA is not
included for this purpose.
• You made an in-plan Roth rollover
after September 27, 2010, and before
January 1, 2011. An in-plan Roth
rollover is an amount from your 401(k)
or 403(b) plan rolled over to a
designated Roth account within the
same plan.
If you have both a rollover to a
Roth IRA and an in-plan Roth
CAUTION
rollover as described above, you
must complete and file a separate Form
8606, Part III, to report each type of
rollover.

!

Line 21
Rollovers to a Roth IRA. Enter on
line 21 the net amount you rolled over
from qualified retirement plans to a
Roth IRA in 2010. To figure the net
amount, subtract from the total amount
rolled over in 2010 any portion that you
recharacterized to a traditional IRA in
2010 or 2011 (see Recharacterizations
that begins on page 3). 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 4 under Reporting
recharacterizations that begins on page
3 for details.
In-plan Roth rollovers. Enter on line
21 the amount of your in-plan Roth
rollovers. This should be the amount in
box 1 of Form 1099-R. Unlike
conversions or rollovers to Roth IRAs,
you cannot recharacterize any amount
of an in-plan Roth rollover.

Line 22

Enter on line 22 any contributions that
were taxable to you when made
(after-tax contributions). This amount is
your investment or basis in the contract
(after-tax contributions). This amount is
usually shown in box 5 of Form 1099-R.

Part III—2010 Rollovers
Line 24
From Qualified
You can include the entire taxable
Retirement Plans to Roth amount on line 23 in your income for
2010 or spread it over 2 years (2011
IRAs and In-plan
and 2012). If you elect to include the
Rollovers to Designated entire amount in income for 2010,
complete line 24. Otherwise, skip line
Roth Accounts
24 and complete lines 25a and 25b.
Complete Part III if you rolled over an
amount described below. If both of the
following apply, you must complete and
file a separate Form 8606, Part III, to
report each type of rollover.
• You rolled over part or all of your
qualified retirement plans (other than
designated Roth accounts) to a Roth
IRA in 2010, excluding any portion you
recharacterized. See item 4 under
Reporting recharacterizations starting
on page 3 for details.
Instructions for Form 8606 (2010)

Any amount on line 25a must be
included in your income for 2011 and
any amount on line 25b must be
included in your income for 2012.

You cannot change your treatment
of the rollover after the due date
(including extensions) for your tax
return.
Note. If you checked the box on line
19, you must also check the box on line
24 for a rollover to a Roth IRA.

-7-

If the taxpayer died during 2010 after
making a rollover, the taxable amount
of the rollover may not be spread over
2 years (2011 and 2012). The tax
return of the deceased taxpayer must
show (a) the entire taxable amount in
2010 or (b) in the case of a rollover to a
Roth IRA, a recharacterization (see
page 3) of the rollover.
Exception for surviving spouse. A
surviving spouse who is the sole
beneficiary of his or her spouse’s Roth
IRA or designated Roth account may
elect to treat the taxable amount in the
same way as the deceased taxpayer.
This election cannot be made or
changed after the due date (including
extensions) for the spouse’s tax return
which includes the date of death.

Part IV—Distributions
From Roth IRAs (and
Certain Distributions
from Designated Roth
Accounts)

Complete Part IV, if one or both of the
following apply.
• You need to figure the taxable part, if
any, of 2010 distributions from your
Roth IRA.
• You took a distribution in 2010 from
your designated Roth account allocable
to an in-plan Roth rollover. Go to
Certain Distributions From Designated
Roth Accounts on page 8, to see if you
need to complete the Designated Roth
Account Income Acceleration
Worksheet on page 8. Do not complete
lines 26 through 35 of Form 8606.
Accelerated income inclusion. If, in
2010, you converted amounts from
traditional, SEP, or SIMPLE IRAs to
your Roth IRA, or you rolled over
amounts from a qualified retirement
plan to a Roth IRA, you are allowed to
include the taxable amount in income in
equal amounts in 2011 and 2012.
However, if you received distributions of
conversion or rollover amounts in 2010,
you may be required to include a
portion of the distribution allocable to
the conversion or rollover in income in
2010.

Line 26

Do not include on line 26 any of the
following.
• Distributions that you rolled over,
including distributions made in 2010
and rolled over after December 31,
2010 (outstanding rollovers).
• Recharacterizations.
• Distributions that are a return of
contributions under Return of IRA
Contributions on page 4.
• Distributions made on or after age
591/2 if you made a contribution
(including a conversion) for 2005 or an
earlier year. However, see Certain
qualified distributions (other than
qualified first-time homebuyer
distributions) on page 8.
• A one-time distribution to fund an
HSA. For details, see Pub. 969.

• Qualified charitable distributions. For

details, see Pub. 590.
• Qualified charitable distributions you
made in January 2011, that you elect to
treat as made in 2010. For details, see
Pub. 590.
• Distributions made upon death or
due to disability if you made a
contribution (including a conversion) for
2005 or an earlier year. However, see
Certain qualified distributions (other
than qualified first-time homebuyer
distributions) below.
• 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 26, do not complete Part IV; 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.
Certain qualified distributions (other
than qualified first-time homebuyer
distributions). Enter your qualified
distributions on line 26 only if you
entered amounts on lines 20a and 20b
or 25a and 25b (not including in-plan
Roth rollovers on lines 25a and 25b).
Then complete Form 8606 through line
33, then enter the amount on line 33 on
line 36.

Line 27

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 2005 or an earlier year, enter the
amount of your qualified expenses on
line 27, but do not enter more than
$10,000. See the note below if you
entered amounts on lines 20a and 20b
or 25a and 25b (not including in-plan
Roth rollovers on lines 25a and 25b).
Note. If you had qualified first-time
homebuyer expenses and also entered
amounts on lines 20a and 20b or 25a
and 25b (not including in-plan Roth
rollovers on lines 25a and 25b), enter
-0- on line 27. Complete Form 8606
through line 34. If you have an amount
to enter on line 35, reduce this amount
by your qualified first-time homebuyer
expenses not entered on line 27, but
not below zero. On the dotted line to
the left of line 35, enter your qualified
first-time homebuyer expenses. Then
complete line 36.

• If you did not take such a distribution

Line 29

Figure the amount to enter on line 29
as follows.
• If you did not take a Roth IRA
distribution before 2010 (other than an
amount rolled over or recharacterized
or a returned contribution), enter on line
29 the total of all your regular
contributions to Roth IRAs for 1998
through 2010 (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 2010, use the chart on page 9 to
figure the amount to enter.
• Increase the amount on line 29 by
any amount rolled in from a designated
Roth account that is treated as
investment in the contract. Do not
include any in-plan Roth rollovers
entered on lines 25a and 25b.
• Increase or decrease the amount on
line 29 by any basis transferred or
received incident to divorce. Also attach
a statement similar to the one
explained in the last bulleted item under
Line 7 on page 6.
• Increase the amount on line 29 by
the amounts received as a military
gratuity or SGLI payment that was
rolled over to your Roth IRA.
• Increase the amount on line 29 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 29 by
any “airline payments” you received as
a result of your employment with an
airline that you rolled over to your Roth
IRA.

Line 30

Generally, there is an additional 10%
tax on 2010 distributions from a Roth
IRA that are shown on line 30. The
additional tax is figured on Form 5329,
Part I. See the instructions for Form
5329, line 1, for details and exceptions.

Line 31

Figure the amount to enter on line 31
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 31.
• If you took a Roth IRA distribution
(other than an amount rolled over or
recharacterized or a returned
contribution) before 2010 in excess of
your basis in regular Roth IRA
contributions, use the chart on page 10
to figure the amount to enter on line 31.

Designated Roth Account Income Acceleration Worksheet

before 2010, enter on line 31 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, line 16 of your 2001 through
2009 Forms 8606, and line16 of your
2010 Form 8606 (only if you checked
the box on line 19). Also include on line
31 any amounts rolled over from a
qualified retirement plan to a Roth IRA
for 2008 and 2009 reported on your
Form 1040, 1040A, or Form 1040NR,
and line 21 of your 2010 Form 8606
(only if you checked the box on line 24).
• Increase or decrease the amount on
line 31 by any basis transferred or
received incident to divorce. Also attach
a statement similar to the one
explained in the last bulleted item under
Line 7 on page 6.

Line 33

Enter on line 33, the smaller of line 32
or the total of lines 20a, 20b, 25a, and
25b. If any amounts on lines 25a and
25b are attributable to an in-plan Roth
rollover, do not include those amounts
on line 33, unless you rolled over
amounts from your designated Roth
account to your Roth IRA after the
in-plan Roth rollover.

Certain Distributions From
Designated Roth Accounts

If you received a distribution from your
designated Roth account after making
an in-plan Roth rollover (reported on
Form 8606, Part III), you may have to
include the part of the distribution
allocable to the in-plan Roth rollover in
income for 2010. See Accelerated
income inclusion below.
Exception. If you checked the box on
line 24 and you are including the
in-plan Roth rollover in income in 2010,
do not complete the worksheet below.
Accelerated income inclusion. If,
after September 27, 2010, you make an
in-plan Roth rollover, you are allowed to
include the taxable amount in income in
equal amounts in 2011 and 2012.
However, if you received distributions of
any in-plan Roth rollover amounts, you
may be required to include a portion of
the distribution allocable to the in-plan
Roth rollover in income in 2010.
Complete the worksheet below only if
you completed lines 25a and 25b of
Form 8606 for your in-plan Roth
rollover. Do not include any amounts
you rolled over to your Roth IRA.
Note. The amount of the distribution
from your designated Roth account

Keep for Your Records

1. Enter the amount from the box to the far left of box 10 from your 2010 Form 1099-R . . . . . . . . . . . . . . . . . . . 1.
2. Enter the total of lines 25a and 25b of Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Taxable amount. Enter the smaller of line 1 or line 2. Also include this amount on Form 8606, line 36, and on
Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
If you also have a taxable distribution from a Roth IRA reported on Form 8606, line 36, combine that amount with line 3 of this worksheet.

-8-

Instructions for Form 8606 (2010)

Basis in Regular Roth IRA Contributions — Line 29
IF the most recent year
prior to 2010 in which you
took a Roth IRA
distribution1 was...

THEN enter on Form 8606,
line 29, this amount...

PLUS the total of all your
regular contributions2 to
Roth IRAs for...

2009
The excess of your 2009 Form
(you had an amount on your 8606, line 22, over line 19 of
2009 Form 8606, line 19)
that Form 8606.

2010

2008
The excess of your 2008 Form
(you had an amount on your 8606, line 22, over line 19 of
2008 Form 8606, line 19)
that Form 8606.

2009 and 2010

2007
The excess of your 2007 Form
(you had an amount on your 8606, line 22, over line 19 of
2007 Form 8606, line 19)
that Form 8606.

2008 through 2010

2006
The excess of your 2006 Form
(you had an amount on your 8606, line 22, over line 19 of
2006 Form 8606, line 19)
that Form 8606.

2007 through 2010

2005
The excess of your 2005 Form
(you had an amount on your 8606, line 22, over line 19 of
2005 Form 8606, line 19)
that Form 8606.

2006 through 2010

2004
The excess of your 2004 Form
(you had an amount on your 8606, line 22, over line 19 of
2004 Form 8606, line 19)
that Form 8606.

2005 through 2010

2003
The excess of your 2003 Form
(you had an amount on your 8606, line 20, over line 19 of
2003 Form 8606, line 19)
that Form 8606.

2004 through 2010

2002
The excess of your 2002 Form
(you had an amount on your 8606, line 20, over line 19 of
2002 Form 8606, line 19)
that Form 8606.

2003 through 2010

2001
The excess of your 2001 Form
(you had an amount on your 8606, line 20, over line 19 of
2001 Form 8606, line 19)
that Form 8606.

2002 through 2010

2000
The excess of your 2000 Form
(you had an amount on your 8606, line 18d, over line 17 of
2000 Form 8606, line 17)
that Form 8606.

2001 through 2010

1999
The excess of your 1999 Form
(you had an amount on your 8606, line 18d, over line 17 of
1999 Form 8606, line 17)
that Form 8606.

2000 through 2010

1998
The excess of your 1998 Form
(you had an amount on your 8606, line 19c, over line 18 of
1998 Form 8606, line 18)
that Form 8606.

1999 through 2010

Did not take a Roth IRA
distribution1 prior to 2010

$0

1998 through 2010

1. Excluding rollovers, recharacterizations, and contributions that you had returned to you.
2. Excluding rollovers, conversions, Roth IRA contributions that were recharacterized, and any
contributions that you had returned to you.

Instructions for Form 8606 (2010)

-9-

may be subject to an additional 10%
tax on early distributions. The additional
tax is figured on Form 5329, Part I. See
the instructions for Form 5329, line 1,
for details.
Privacy Act and Paperwork
Reduction Act Notice. We ask for the
information on this form to carry out the
Internal Revenue laws of the United
States. We need this information to
ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax. You are
required to give us this information if
you made certain contributions or
received certain distributions from
qualified plans, including IRAs, and
other tax-favored accounts. Our legal
right to ask for the information
requested on this form is sections
6001, 6011, 6012(a), and 6109 and
their regulations. If you do not provide
this information, or you provide
incomplete or false information, you
may be subject to penalties.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions
must be retained as long as their
contents may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103. However, we may give
the information to the Department of
Justice for civil and criminal litigation,
and to cities, states, the District of
Columbia, and U.S. commonwealths
and possessions to carry out their tax
laws. We may also disclose this
information to other countries under a
tax treaty, to federal and state agencies
to enforce federal nontax criminal laws,
or to federal law enforcement and
intelligence agencies to combat
terrorism.
The average time and expenses
required to complete and file this form
will vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making
this form simpler, we would be happy to
hear from you. See the instructions for
your income tax return.

Basis in Roth IRA Conversions and Rollovers From Qualified Retirement Plans to Roth IRAs — Line 31
IF the most recent year prior to 2010 in THEN enter on Form 8606, line 31, this amount... PLUS the sum of the amounts
which you had a distribution1 in
on the following lines...
excess of your basis in contributions
was...
2009
The excess, if any, of your 2009 Form 8606, line 24,
(your 2009 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
than line 19 of that Form 8606)

Lines 16 and 21 of your 2010
Form 8606 5

2008
The excess, if any, of your 2008 Form 8606, line 24,
(your 2008 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
than line 19 of that Form 8606)

Lines 16 and 21 of your 2010
Form 8606,5 and line 16 of your
2009 Form 8606 3

2007
The excess, if any, of your 2007 Form 8606, line 24,
(your 2007 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
than line 19 of that Form 8606)

Lines 16 and 21 of your 2010
Form 8606,5 and line 16 of your
2008 and 2009 Forms 8606 4

2006
The excess, if any, of your 2006 Form 8606, line 24,
Lines 16 and 21 of your 2010
(your 2006 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
Form 8606,5 and line 16 of your
than line 19 of that Form 8606)
2007 through 2009 Forms 8606 4
2005
The excess, if any, of your 2005 Form 8606, line 24,
Lines 16 and 21 of your 2010
(your 2005 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
Form 8606,5 and line 16 of your
than line 19 of that Form 8606)
2006 through 2009 Forms 8606 4
2004
The excess, if any, of your 2004 Form 8606, line 24,
Lines 16 and 21 of your 2010
(your 2004 Form 8606, line 22, was less
over line 23 2 of that Form 8606.
Form 8606,5 and line 16 of your
than line 19 of that Form 8606)
2005 through 2009 Forms 8606 4
2003
The excess, if any, of your 2003 Form 8606, line 22,
Lines 16 and 21 of your 2010
(you had an amount on your 2003 Form
over line 21 of that Form 8606.
Form 8606,5 and line 16 of your
8606, line 21)
2004 through 2009 Forms 86064
2002
The excess, if any, of your 2002 Form 8606, line 22,
Lines 16 and 21 of your 2010
(you had an amount on your 2002 Form
over
Form 8606,5 and line 16 of your
8606, line 21)
line 21 of that Form 8606.
2003 through 2009 Forms 8606 4
2001
The excess, if any, of your 2001 Form 8606, line 22,
Lines 16 and 21 of your 2010
(you had an amount on your 2001 Form
over
Form 8606,5 and line 16 of your
8606, line 21)
line 21 of that Form 8606.
2002 through 2009 Forms 8606 4
2000
The excess, if any, of your 2000 Form 8606, line 25,
Lines 16 and 21 of your 2010
(you had an amount on your 2000 Form
over
Form 8606,5 and line 16 of your
8606, line 19)
line 19 of that Form 8606.
2001 through 2009 Forms 8606 4
Lines 16 and 21 of your 2010
1999
The excess, if any, of your 1999 Form 8606, line 25, Form 8606,5 and line 14c of your
(you had an amount on your 1999 Form
over
2000 Form 8606, and line 16 of
8606, line 19)
line 19 of that Form 8606.
your 2001 through 2009 Forms
8606 4
1998
(you had an amount on your 1998 Form
8606, line 20)

The excess, if any, of your 1998 Form 8606, line
14c, over
line 20 of that Form 8606.

Lines 16 and 21 of your 2010
Form 8606,5 and line 14c of your
1999 and 2000 Forms 8606, and
line 16 of your 2001 through 2009
Forms 8606 4

Did not have such a distribution in excess
of your basis in contributions

The amounts from your 2010 Form 8606,
lines 16 and 21.5

Line 14c of your 1998, 1999, and
2000 Forms 8606 and line 16 of
your 2001 through 2009 Forms
86064

1. Excluding rollovers, recharacterizations, and contributions that you had returned to you.
2. Refigure line 23 without taking into account any amount entered on Form 8606, line 20.
3. Also include amounts rolled over from qualified retirement plans to Roth IRAs in 2009 from your Form 1040, line 16a; Form 1040A, line 12a; or
Form 1040NR, line 17a.
4. Also include amounts rolled over from qualified retirement plans to Roth IRAs in 2008 and 2009 from your Form 1040, line 16a; Form 1040A,
line 12a; or Form 1040NR, line 17a.
5. Only include these amounts if you checked the box on lines 19 and 24. Do not include any in-plan Roth rollovers entered on line 21.

-10-

Instructions for Form 8606 (2010)