8606 Instr

2020

Instructions for Form 8606

Department of the Treasury
Internal Revenue Service

Nondeductible IRAs
Section references are to the Internal Revenue
Code unless otherwise noted.

General Instructions
Future Developments

For the latest information about
developments related to 2020 Form
8606 and its instructions, such as
legislation enacted after they were
published, go to IRS.gov/Form8606.

What's New
Coronavirus-related distributions. If
you or a member of your household was
impacted by the coronavirus and you
made withdrawals from your retirement
plan in 2020 before December 31, you
may have coronavirus-related
distributions eligible for special tax
benefits. Coronavirus-related
distributions are reported on Form
8915-E, Qualified 2020 Disaster
Retirement Plan Distributions and
Repayments, as qualified 2020 disaster
distributions. See the Instructions for
Form 8915-E. Your Form 8606 may be
impacted by those distributions. See, for
example, Tax relief for qualified 2018,
2019, and 2020 disaster distributions
below. Also see, later, Who Must File,
Line 15b, Line 19, and Line 25b.
At the time these instructions
went to print, legislation was
CAUTION being considered that would
expand the scope of Form 8915-E to
cover disasters other than the
coronavirus. Go to IRS.gov/Form8606
or IRS.gov/Form8915E to find out
whether the legislation was enacted.

!

Tax relief for qualified 2018, 2019,
and 2020 disaster distributions.
Special rules may apply to your return if
you received a distribution from your
IRA or other retirement plan and your
main home was in certain Presidentially
declared disaster areas. For your 2020
return, these qualified disaster
distributions are those in 2020 Form
8915-C, Qualified 2018 Disaster
Retirement Plan Distributions and
Repayments, and its instructions; and
2020 Form 8915-D, Qualified 2019
Disaster Retirement Plan Distributions
and Repayments, and its instructions.
As noted above, special rules also may
Dec 10, 2020

apply to your return if you received a
distribution from your IRA or other
retirement plan and you were impacted
by the coronavirus — for your 2020
return, these qualified disaster
distributions are those in 2020 Form
8915-E, which covers the
coronavirus-related distributions.

• Nondeductible contributions you
made to traditional IRAs;
• Distributions from traditional, SEP, or
SIMPLE IRAs, if you have a basis in
these IRAs;
• Conversions from traditional, SEP, or
SIMPLE IRAs to Roth IRAs; and
• Distributions from Roth IRAs.

Form 1040-NR. Form 1040-NR, U.S.
Nonresident Alien Income Tax Return,
is being redesigned for 2020 to look like
Form 1040. Like Forms 1040 and
1040-SR, 2020 Form 1040-NR will be
supplemented by Schedules 1, 2, and 3
(Form 1040).

Additional information. For more
details on IRAs, see Pub. 590-A,
Contributions to Individual Retirement
Arrangements (IRAs); and Pub. 590-B,
Distributions from Individual Retirement
Arrangements (IRAs).

Taxable compensation. For tax years
beginning after December 31, 2019,
taxable compensation includes certain
non-tuition fellowship and stipend
payments. For details, see 2020 Pub.
590-A, Contributions to Individual
Retirement Arrangements (IRAs).
Difficulty of care payments. For
contributions after December 20, 2019,
you may elect to increase the
nondeductible IRA contribution limit by
some or all of the amount of difficulty of
care payments, which are a type of
qualified foster care payment, received.
For details, see 2020 Pub. 590-A,
Contributions to Individual Retirement
Arrangements (IRAs).
Modified AGI limit for Roth IRA contributions increased. You can
contribute to a Roth IRA for 2020 only if
your 2020 modified adjusted gross
income (AGI) for Roth IRA purposes is
less than:
• $206,000 if married filing jointly or
qualifying widow(er);
• $139,000 if single, head of
household, or married filing separately
and you didn’t live with your spouse at
any time in 2020; or
• $10,000 if married filing separately
and you lived with your spouse at any
time in 2020.
See Roth IRAs, later.
Due date for contributions. The due
date for making contributions for 2020 to
your IRA for most people is Thursday,
April 15, 2021.

Purpose of Form

Use Form 8606 to report:
Cat. No. 25399E

If you received distributions

TIP from a traditional, SEP, or

SIMPLE IRA in 2020 and you
have never made nondeductible
contributions (including nontaxable
amounts you rolled over from a qualified
retirement plan) to these IRAs, don’t
report the distributions on 2020 Form
8606. Instead, see Lines 4a and 4b in
the 2020 Instructions for Form 1040 and
1040-SR, or the 2020 Instructions for
Form 1040-NR. Also, to find out if any of
your contributions to traditional IRAs are
deductible, see the instructions for
Schedule 1 (Form 1040).

Who Must File

File Form 8606 if any of the following
apply.
• You made nondeductible
contributions to a traditional IRA for
2020, including a repayment of a
qualified disaster or reservist
distribution.
• You received distributions from a
traditional, SEP, or SIMPLE IRA in 2020
and your basis in these IRAs is more
than zero. For this purpose, a
distribution doesn’t include a distribution
that is rolled over (other than a
repayment of a qualified disaster
distribution (see 2020 Forms 8915-C,
8915-D, and 8915-E)), qualified
charitable distribution, one-time
distribution to fund an HSA, conversion,
recharacterization, or return of certain
contributions.
• You or your spouse transferred all or
part of their traditional, SEP, or SIMPLE
IRA in 2020 to the other spouse under a
divorce or separation agreement where

the transfer resulted in a change in the
basis of the IRA of either spouse.
• You converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2020.
• You received distributions from a
Roth IRA in 2020 (other than a rollover,
recharacterization, or return of certain
contributions—see the instructions for
Part III, later).
• You received a distribution from an
inherited traditional, SEP, or SIMPLE
IRA that has a basis, or you received a
distribution from an inherited Roth IRA
that wasn’t a qualified distribution. You
may need to file more than one Form
8606. See IRA with basis under What if
You Inherit an IRA? in Pub. 590-B for
more information.

Contributions. An overall contribution
limit applies to traditional IRAs and Roth
IRAs. See Overall Contribution Limit for
Traditional and Roth IRAs, later.
Contributions to a traditional IRA may be
fully deductible, partially deductible, or
completely nondeductible.

Note. If you recharacterized a 2020
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
Recharacterizations, later.

SEP IRAs

You don’t have to file Form

TIP 8606 solely to report regular

contributions to Roth IRAs. But
see What Records Must I Keep, later.

When and Where To File

File 2020 Form 8606 with your 2020
Form 1040, 1040-SR, or 1040-NR by
the due date, including extensions, of
your return.
If you aren’t required to file an
income tax return but are required to file
Form 8606, sign Form 8606 and send it
to the IRS at the same time and place
you would otherwise file Form 1040,
1040-SR, or 1040-NR. Be sure to
include your address on page 1 of the
form and your signature and the date on
page 2 of the form.

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 2020 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-A
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.

Basis. Your basis in traditional, SEP,
and SIMPLE IRAs is the total of all your
nondeductible contributions and
nontaxable amounts included in
rollovers made to these IRAs minus the
total of all your nontaxable distributions,
adjusted if necessary (see the
instructions for line 2, later).

!

CAUTION

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

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

A SIMPLE IRA plan is a tax-favored
retirement plan that certain small
employers (including self-employed
individuals) can set up for the benefit of
their employees. Your participation in
your employer's SIMPLE IRA plan
doesn’t prevent you from making
contributions to a traditional or Roth
IRA. SIMPLE IRA plans are also known
as Savings Incentive Match Plans for
Employees.

Roth IRAs

A Roth IRA is similar to a traditional IRA,
but has the following features.
• Contributions are never deductible.
• No minimum distributions are
required during the Roth IRA owner's
lifetime.
• Qualified distributions aren’t
includible in income.
Qualified distribution. Generally, a
qualified distribution is any distribution
from your Roth IRA that meets the
following requirements.
1. It is made after the 5-year period
beginning with the first year for which a
contribution was made to a Roth IRA
(including a conversion or a rollover
-2-

from a qualified retirement plan) set up
for your benefit, and
2. The distribution is made:
a. On or after the date you reach
age 591/2,
b. After your death,
c. Due to your disability, or
d. For qualified first-time homebuyer
expenses.
Contributions. You can contribute to a
Roth IRA for 2020 only if your 2020
modified AGI for Roth IRA purposes is
less than:
• $206,000 if married filing jointly or
qualifying widow(er);
• $139,000 if single, head of
household, or if married filing separately
and you didn’t live with your spouse at
any time in 2020; or
• $10,000 if married filing separately
and you lived with your spouse at any
time in 2020.
Use the Maximum Roth IRA
Contribution Worksheet to figure the
maximum amount you can contribute to
a Roth IRA for 2020. If you are married
filing jointly, complete the worksheet
separately for you and your spouse.

!

CAUTION

If you contributed too much to
your Roth IRA, see
Recharacterizations, later.

Modified AGI for Roth IRA purposes.
First, figure your AGI (Form 1040,
1040-SR, or 1040-NR, line 11). Then,
refigure it by:
1. Subtracting the following.
a. Roth IRA conversions included
on Form 1040, 1040-SR, or 1040-NR,
line 4b.
b. Roth IRA rollovers from qualified
retirement plans included on Form
1040, 1040-SR, or 1040-NR, line 5b.
2. Adding the following.
a. IRA deduction from Schedule 1
(Form 1040), line 19.
b. Student loan interest deduction
from Schedule 1 (Form 1040), line 20.
c. Tuition and fees deduction from
Schedule 1 (Form 1040), line 21.
d. Exclusion of interest from Form
8815, Exclusion of Interest From Series
EE and I U.S. Savings Bonds Issued
After 1989.
e. Exclusion of employer-provided
adoption benefits from Form 8839,
Qualified Adoption Expenses.
f. Foreign earned income exclusion
from Form 2555, Foreign Earned
Income.
Instructions for Form 8606 (2020)

Maximum Roth IRA Contribution Worksheet

Keep for Your Records

Caution: If married filing jointly and the combined taxable compensation (defined below) for you and your spouse is
less than $12,000 ($13,000 if one spouse is 50 or older at the end of 2020; $14,000 if both spouses are 50 or older at
the end of 2020), don’t use this worksheet. Instead, see Pub. 590-A for special rules.
1. If married filing jointly, enter $6,000 ($7,000 if age 50 or older at the end of 2020). All
others, enter the smaller of $6,000 ($7,000 if age 50 or older at the end of 2020) or
your taxable compensation (defined below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your total contributions to traditional IRAs for 2020 . . . . . . . . . . . . . . . . . . . . . . . . .

1.

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter: $206,000 if married filing jointly or qualifying widow(er); $10,000 if married
filing separately and you lived with your spouse at any time in 2020. All others, enter
$139,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Enter your modified AGI for Roth IRA purposes (discussed earlier) . . . . . . . . . . . . . . .

4.

6. Subtract line 5 from line 4. If zero or less, stop here; you may not contribute to a
Roth IRA for 2020. See Recharacterizations below if you made Roth IRA
contributions for 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. If line 4 above is $139,000, 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Multiply line 1 by line 8. If the result isn’t 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 2020 Roth IRA Contribution. Enter the smaller of line 3 or line 9. See
Recharacterizations below if you contributed more than this amount to Roth IRAs
for 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g. Foreign housing exclusion or
deduction from Form 2555.

!

CAUTION

When figuring modified AGI for
Roth IRA purposes, you may
have to refigure items based on

Instructions for Form 8606 (2020)

modified AGI, such as taxable social
security benefits and passive activity
losses allowed under the special
allowance for rental real estate

-3-

2.

5.
6.
7.
8.
9.
10.

activities. See Can You Contribute to a
Roth IRA? in Pub. 590-A for details.
Distributions. See the instructions for
Part III, later.

Overall Contribution Limit for
Traditional and Roth IRAs

If you aren’t married filing jointly, your
limit on contributions to traditional and
Roth IRAs is generally the smaller of
$6,000 ($7,000 if age 50 or older at the
end of 2020) or your taxable
compensation (defined below).
If you are married filing jointly, your
contribution limit is generally $6,000
($7,000 if age 50 or older at the end of
2020) and your spouse's contribution
limit is $6,000 ($7,000 if age 50 or older
at the end of 2020) as well. But if the
combined taxable compensation of both
you and your spouse is less than
$12,000 ($13,000 if one spouse is 50 or
older at the end of 2020; $14,000 if both
spouses are 50 or older at the end of
2020), see Kay Bailey Hutchison
Spousal IRA Limit in Pub. 590-A for
special rules.
This limit doesn’t 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 distributions and
qualified reservist distributions don’t
affect your contribution limit.
The amount you can contribute
to a Roth IRA also may be
CAUTION limited by your modified AGI
(see Contributions, earlier, and the
Maximum Roth IRA Contribution
Worksheet).

!

Taxable compensation. 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-NEC, box 1, don’t
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 14. If it isn’t,
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 deductible part
of your self-employment tax.

• Alimony and separate maintenance
pursuant to a divorce or separation
agreement entered into before January
1, 2019; unless that agreement was
changed after December 31, 2018, to
expressly provide that alimony received
isn't included in the recipient's income.
• Certain non-tuition fellowship and
stipend payments for tax years
beginning after December 31, 2019. For
details, see Pub. 590-A, Contributions
to Individual Retirement Arrangements
(IRAs).
See What Is Compensation? under
Who Can Open a Traditional IRA? in
chapter 1 of Pub. 590-A for details.

Recharacterizations

Generally, you can recharacterize
(correct) an IRA contribution 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 Amending Form 8606, later). Write
“Filed pursuant to section 301.9100-2”
on the amended return.
No recharacterizations of conversions made in 2018 or later. A
conversion of a traditional IRA to a Roth
IRA, and a rollover from any other
eligible retirement plan to a Roth IRA,
made in tax years beginning after
December 31, 2017, cannot be
recharacterized as having been made to
a traditional IRA.
Reporting recharacterizations. Treat
any recharacterized IRA contribution as
though the amount of the contribution
was originally contributed to the second
IRA, not the first IRA. For the
recharacterization, you must transfer the
amount of the original contribution plus
any related earnings or less any related
loss. In most cases, your IRA trustee or
custodian figures the amount of the
related earnings you must transfer. If
you need to figure the related earnings,
see How Do You Recharacterize a
Contribution? in chapter 1 of Pub.
590-A. Treat any earnings or loss that
occurred in the first IRA as having
occurred in the second IRA. You can’t
deduct any loss that occurred while the
funds were in the first IRA. Also, you
-4-

can’t take a deduction for a contribution
to a traditional IRA if you later
recharacterize the amount. The
following discussion explains how to
report the two different types of
recharacterizations, including the
statement that you must attach to your
return explaining the recharacterization.
1. You made a contribution to a
traditional IRA and later recharacterized
part or all of it in a trustee-to-trustee
transfer 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, don’t report the
contribution on Form 8606. In either
case, attach a statement to your return
explaining the recharacterization. If the
recharacterization occurred in 2020,
include the amount transferred from the
traditional IRA on Form 1040, 1040-SR,
or 1040-NR, line 4a. If the
recharacterization occurred in 2021,
report the amount transferred only in the
attached statement, and not on your
2020 or 2021 tax return.
Example. You are single, covered by
an employer retirement plan, and you
contributed $4,000 to a new traditional
IRA on May 27, 2020. On February 24,
2021, you determine that your 2020
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 don’t file Form 8606.
You attach a statement to your return
explaining the recharacterization. The
statement indicates that you contributed
$4,000 to a traditional IRA on May 27,
2020; recharacterized $3,000 of that
contribution on February 24, 2021, by
transferring $3,000 plus $300 of related
earnings from your traditional IRA to a
Roth IRA in a trustee-to-trustee transfer;
and deducted the remaining traditional
IRA contribution of $1,000 on Form
1040. You don’t report the $3,300
distribution from your traditional IRA on
your 2020 Form 1040 because the
distribution occurred in 2021. You don’t
report the distribution on your 2021
Form 1040 because the
recharacterization related to 2020 and
was explained in an attachment to your
2020 return.
Instructions for Form 8606 (2020)

2. You made a contribution to a
Roth IRA and later recharacterized part
or all of it in a trustee-to-trustee transfer
to a traditional IRA. Report the
nondeductible traditional IRA portion of
the recharacterized contribution, if any,
on Form 8606, Part I. Don’t report the
Roth IRA contribution (whether or not
you recharacterized all or part of it) on
Form 8606. Attach a statement to your
return explaining the recharacterization.
If the recharacterization occurred in
2020, include the amount transferred
from the Roth IRA on Form 1040,
1040-SR, or 1040-NR, line 4a. If the
recharacterization occurred in 2021,
report the amount transferred only in the
attached statement, and not on your
2020 or 2021 tax return.
Example. You are single, covered by
an employer retirement plan, and you
contributed $4,000 to a new Roth IRA
on June 16, 2020. On December 29,
2020, you determine that your 2020
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 don’t file Form 8606.
You 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,
2020; recharacterized that contribution
on December 29, 2020, by transferring
$4,200, the balance in the Roth IRA, to
a traditional IRA in a trustee-to-trustee
transfer; and deducted the traditional
IRA contribution of $4,000 on Form
1040. You include the $4,200
distribution from your Roth IRA on your
2020 Form 1040, line 4a.

Return of IRA
Contributions

If, in 2020, you made traditional IRA
contributions or Roth IRA contributions
for 2020 and you had those
contributions returned to you with any
related earnings (or minus any loss) by
the due date (including extensions) of
your 2020 tax return, the returned
contributions are treated as if they were
never contributed. Don’t report the
contribution or distribution on Form
8606 or take a deduction for the
contribution. However, you must include
the amount of the distribution of the
returned contributions you made in
Instructions for Form 8606 (2020)

2020 and any related earnings on your
2020 Form 1040, 1040-SR, or 1040-NR,
line 4a. Also include the related
earnings on your 2020 Form 1040,
1040-SR, or 1040-NR, line 4b. Attach a
statement explaining the distribution.
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 2020 tax return
without withdrawing a contribution that
you made in 2020, you can still have the
contribution returned to you within 6
months of the due date of your 2020 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 withdrawn
contribution. Make any other necessary
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 chapter 1 of Pub.
590-A. If you made a contribution or
distribution while the IRA held the
returned contribution, see Pub. 590-A.
If you made a contribution for 2019
and you had it returned to you in 2020
as described above, don’t report the
distribution on your 2020 tax return.
Instead, report it on your 2019 original
or amended return in the manner
described above.
Example. On May 28, 2020, you
contributed $4,000 to your traditional
IRA that has basis. The value of the IRA
was $18,000 prior to the contribution.
On December 29, 2020, when you are
age 57 and the value of the IRA is
$23,600, you realize you can’t make the
entire contribution because your taxable
compensation for the year will be too
small. 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
didn’t make any other withdrawals or
contributions. You don’t file Form 8606.
-5-

You deduct the $3,000 remaining
contribution on Form 1040. You include
$1,073 on Form 1040, line 4a, and $73
on line 4b. 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 aren’t 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
Schedule 2 (Form 1040), line 6.

Return of Excess
Traditional IRA
Contributions

The return (distribution) in 2020 of
excess traditional IRA contributions for
years prior to 2020 isn’t 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. No deduction was allowable
(without regard to the modified AGI
limitation) or taken for the excess
contributions.
3. The total contributions (excluding
rollovers) to your traditional and SEP
IRAs for the year for which the excess
contributions were made didn’t exceed
the amounts shown in the following
table.

Year(s)

Contribution Contribution
limit
limit if age
50 or older at
the end of
the year

2019

$6,000

$7,000

2013
through
2018

$5,500

$6,500

2008
through
2012

$5,000

$6,000

2006 or
2007

$4,000

$5,000

2005

$4,000

$4,500

2002
through
2004

$3,000

$3,500

1997
through
2001

$2,000

—

before 1997

$2,250

—

If the excess contribution to your
traditional IRA for the year included a
rollover and the excess occurred
because the information the plan was
required to give you was incorrect,
increase the contribution limit amount
for the year shown in the table above by
the amount of the excess that is due to
the incorrect information.
If the total contributions for the year
included employer contributions to a
SEP IRA, increase the contribution limit
amount for the year shown in the table
above by the smaller of the amount of
the employer contributions or:
2019

$56,000

2018

$55,000

2017

$54,000

2015 or 2016

$53,000

2014

$52,000

2013

$51,000

2012

$50,000

2009, 2010, or 2011

$49,000

2008

$46,000

2007

$45,000

2006

$44,000

2005

$42,000

2004

$41,000

2002 or 2003

$40,000

2001

$35,000

before 2001

$30,000

Include the total amount distributed
on 2020 Form 1040, 1040-SR, or
1040-NR, line 4a; and attach a
statement to your return explaining the
distribution. See Example, later.
If you meet these conditions and are
otherwise required to file Form 8606:
• Don’t take into account the amount of
the withdrawn contributions in figuring
line 2 (for 2020 or for any later year),
and
• Don’t include the amount of the
withdrawn contributions on line 7.
Example. You are single, you retired
in 2017, and you had no taxable
compensation after 2017. However, you
made traditional IRA contributions (that
you didn’t deduct) of $3,000 in 2018 and
$4,000 in 2019. In November 2020, 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 2018 and 2019 reflecting the
additional 6% tax on excess
contributions on Form 5329. You
include the $7,000 distribution on your
2020 Form 1040, line 4a, enter -0- on
line 4b, and attach a statement to your
return explaining the distribution,
including the fact that you filed
amended returns for 2018 and 2019,
and paid the additional 6% tax on the
excess contributions for those years.
The statement indicates that the
distribution isn’t taxable because (a) it
was made after the due dates of your
2018 and 2019 tax returns, including
extensions; (b) your total IRA
contributions for 2019 didn’t exceed
$6,000 ($7,000 if age 50 or older at the
end of that year) and in 2018 didn’t
exceed $5,500 ($6,500 if age 50 or
older at the end of that year); and (c)
you didn’t take a deduction for the
contributions, and no deduction was
allowable because you didn’t have any
taxable compensation for those years.
The statement also indicates that the
distribution reduced your excess
contributions to -0-, as reflected on your
2020 Form 5329. Don’t file Form 8606
for 2020. If you are required to file Form
8606 in a year after 2020, don’t include
the $7,000 you withdrew in 2020 on
line 2.

Amending Form 8606

Generally, after you file your return, you
can change a nondeductible
contribution to a traditional IRA to a
deductible contribution or vice versa if
you make the change within the time
limit for filing Form 1040-X, Amended
-6-

U.S. Individual Income Tax Return (see
When To File in the Form 1040-X
instructions). You also may be able to
make a recharacterization (discussed
earlier). If necessary, complete a new
Form 8606 showing the revised
information and file it with Form 1040-X.

Penalty for Not Filing

If you are required to file Form 8606 to
report a nondeductible contribution to a
traditional IRA for 2020, but don’t 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 1040-SR (or
Forms 1040A, 1040-NR, 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, IRA Contribution
Information, 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, 1040A, 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.
More than one Form 8606 required.
If both you and your spouse are
required to file Form 8606, file a
separate Form 8606 for each of you. If
you are required to file Form 8606 for
IRAs inherited from more than one
Instructions for Form 8606 (2020)

decedent, file a separate Form 8606 for
the IRA from each decedent.

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, 1040-SR,
or 1040-NR instructions, subtract line 12
of the worksheet (or the amount you
chose to deduct on Schedule 1 (Form
1040), line 19, if less) from the smaller
of line 10 or line 11 of the worksheet.
Enter the result on line 1 of Form 8606.
You can’t deduct the amount included
on line 1.
If you used the worksheet Figuring
Your Reduced IRA Deduction for 2020
in Pub. 590-A, enter on line 1 of Form
8606 any nondeductible contributions
from the appropriate lines of that
worksheet.
If you didn’t have any deductible
contributions, you can make
nondeductible contributions up to your
contribution limit (see Overall
Contribution Limit for Traditional and
Roth IRAs, earlier). Enter on line 1 of
Form 8606 your nondeductible
contributions.
Include on line 1 any repayment of a
qualified reservist distribution.
Don’t 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

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

However, you may need to enter an
amount that is more than -0- (even if this
is the first year you are required to file
Form 8606) or increase or decrease 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, SEP,
or SIMPLE IRA (see the last bulleted
item under Line 7, later).
• You rolled over any nontaxable
portion of your qualified retirement plan
Instructions for Form 8606 (2020)

to a traditional, SEP, or SIMPLE IRA
that wasn’t previously reported on Form
8606, line 2. Include the nontaxable
portion on line 2.

Line 4

If you made contributions to traditional
IRAs for 2020 in 2020 and 2021 and you
have both deductible and nondeductible
contributions, you can choose to treat
the contributions made in 2020 first as
nondeductible contributions and then as
deductible contributions, or vice versa.
Example. You made contributions
for 2020 of $2,000 in May 2020 and
$2,000 in January 2021, of which
$3,000 are deductible and $1,000 are
nondeductible. You choose $1,000 of
your contribution in 2020 to be
nondeductible. You enter the $1,000 on
line 1, but not line 4, and it becomes
part of your basis for 2020.

Although the contributions to
traditional IRAs for 2020 that you made
from January 1, 2021, through April 15,
2021, can be treated as nondeductible,
they aren’t included in figuring the
nontaxable part of any distributions you
received in 2020.

Line 6

Enter the total value of all your
traditional, SEP, and SIMPLE IRAs as of
December 31, 2020, plus any
outstanding rollovers. A statement
should be sent to you by February 1,
2021, showing the value of each IRA on
December 31, 2020. However, if you
recharacterized any amounts originally
contributed, enter on line 6 the total
value, taking into account all
recharacterizations of those amounts,
including recharacterizations made after
December 31, 2020.
For purposes of 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 after receiving the
distribution from the first IRA. An
outstanding rollover is generally the
amount of any distribution received in
2020 after November 1, 2020, that was
rolled over in 2021, but within the
60-day rollover period. A rollover
between a SIMPLE IRA and a qualified
retirement plan or an IRA (other than a
SIMPLE IRA) can only take place after
your first 2 years of participation in the
SIMPLE IRA. See Pub. 590-A for more
details.
Pursuant to Rev. Proc. 2020-46 in
Internal Revenue Bulletin 2020-45,
available at https://www.irs.gov/irb/
-7-

2020-45_IRB#REV-PROC-2020-46,
you may make a written certification to a
plan administrator or an IRA trustee that
you missed the 60-day rollover
contribution deadline because of one or
more of the 12 reasons listed in Rev.
Proc. 2020-46. See Rev. Proc. 2020-46
for information on how to self-certify for
a waiver. Also see Time Limit for Making
a Rollover Contribution under Can You
Move Retirement Plan Assets? in Pub.
590-A for more information on ways to
get a waiver of the 60-day rollover
requirement.
Note. Don’t include an outstanding
rollover from a traditional, SEP, or
SIMPLE IRA to a qualified retirement
plan.

Repayments in 2020 of qualified
disaster distributions.
Do not reduce line 6 by qualified
disaster distribution repayments that
were made in 2020 for qualified disaster
distributions made in 2017, 2018, or
2019.
The amount you would otherwise
enter on line 6 should be reduced by the
total amount of qualified disaster
distribution repayments that were made
in 2020 for qualified disaster
distributions made in 2020. If the result
is zero or less, enter -0-.
Example. You received a $30,000
qualified disaster distribution on
October 1, 2020, from your traditional
IRA. On November 25, 2020, you made
a repayment of $10,000 to your
traditional IRA. The value of all of your
traditional, SEP, and SIMPLE IRAs as of
December 31, 2020, was $50,000. You
had no outstanding rollovers. You would
enter $40,000 ($50,000 minus $10,000
repayment) on line 6.

Line 7
If you received a distribution in
2020 from a traditional, SEP, or
CAUTION SIMPLE IRA, and you also
made contributions for 2020 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-B.

!

Don’t include any of the following on
line 7.
• Distributions that you converted to a
Roth IRA.
• Recharacterizations of traditional IRA
contributions to Roth IRA contributions.

• Distributions you rolled over to
another traditional, SEP, or SIMPLE IRA
(whether or not the distribution is an
outstanding rollover 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
(QCDs). For details, see Are
Distributions Taxable? in chapter 1 of
Pub. 590-B.
• Distributions that are treated as a
return of excess contributions under
Return of Excess Traditional IRA
Contributions, earlier.
• 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 isn’t taxable to
you or your spouse. If this transfer
results in a change in the basis of the
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 IRA, such as the amount
attributable to nondeductible
contributions. Also, include the name
and social security number of the other
spouse.

to a Roth IRA, enter on line 8 the net
amount you converted.

Qualified disaster
distributions. Be sure to
CAUTION include on line 7 all qualified
disaster distributions made in 2020,
even if they were later repaid.

Example 2. In November 2020, you
received a $50,000 distribution,
unrelated to a qualified disaster, from
your traditional IRA (that you did not roll
over). Earlier, in October 2020, you
received a qualified disaster distribution
from your traditional IRA in the amount
of $100,000. You reported all of the
$100,000 on 2020 Form 8915-E. You
had no other distributions. You will
report total distributions of $150,000 on

!

Line 8

If, in 2020, you converted any amounts
from traditional, SEP, or SIMPLE IRAs

Line 15b

If all your distributions are qualified
disaster distributions, enter the amount
from line 15a on line 15b. If you have
distributions unrelated to qualified
disasters, as well as qualified disaster
distributions, you will need to multiply
the amount on line 15a by a fraction.
The numerator of the fraction is your
total qualified disaster distributions and
the denominator is the amount from
Form 8606, line 7.
Example 1. In November 2020, you
received a $50,000 distribution,
unrelated to a qualified disaster, from
your traditional IRA (that you did not roll
over). Earlier, in May 2020, you
received a qualified disaster distribution
from your traditional IRA in the amount
of $200,000. You reported $100,000 on
2020 Form 8915-D and $100,000 on
2020 Form 8915-E. You only had one
disaster covered by Form 8915-D. You
had no other distributions. You will
report total distributions of $250,000 on
Form 8606, line 7. You then will
complete lines 8 through 14 as
instructed. Form 8606, line 15a, shows
an amount of $150,000. You will enter
$120,000 ($150,000 x
$200,000/$250,000) on line 15b. You
will also enter $60,000 ($120,000 x
$100,000/$200,000) on 2020 Form
8915-D, line 22; and $60,000 ($120,000
x $100,000/$200,000) on 2020 Form
8915-E, line 13.

Total Basis Chart

Form 8606, line 7. You then will
complete lines 8 through 14 as
instructed. Form 8606, line 15a, shows
an amount of $120,000. You will enter
$80,000 ($120,000 x
$100,000/$150,000) on line 15b. You
will also enter $80,000 on line 13 of
2020 Form 8915-E.
Example 3. In November 2020, you
received a $50,000 distribution,
unrelated to a qualified disaster, from
your traditional IRA (that you did not roll
over). Earlier, in May 2020, you
received a qualified disaster distribution
from your traditional IRA in the amount
of $300,000. You reported $100,000 on
2020 Form 8915-C, $100,000 on 2020
Form 8915-D, and $100,000 on 2020
Form 8915-E. You only had one disaster
covered by Form 8915-C and one
disaster covered by Form 8915-D. You
had no other distributions. You will
report total distributions of $350,000 on
Form 8606, line 7. You then will
complete lines 8 through 14 as
instructed. Form 8606, line 15a, shows
an amount of $315,000. You will enter
$270,000 ($315,000 x
$300,000/$350,000) on line 15b. You
will also enter $90,000 ($270,000 x
$100,000/$300,000) on 2020 Form
8915-C, line 23; $90,000 ($270,000 x
$100,000/$300,000) on 2020 Form
8915-D, line 22; and $90,000 ($270,000
x $100,000/$300,000) on 2020 Form
8915-E, line 13.

Line 15c

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 of your participation in
the plan). See the instructions for
Schedule 2 (Form 1040), line 6; and
also the Instructions for Form 5329.

Part II—2020 Conversions
From Traditional, SEP, or
SIMPLE IRAs to Roth IRAs

IF the last Form 8606 you filed was
for . . .

THEN enter on line 2 . . .

A year after 2000 and before 2020

The amount from line 14 of that Form 8606

Complete Part II if you converted part or
all of your traditional, SEP, or SIMPLE
IRAs to a Roth IRA in 2020.

A year after 1992 and before 2001

The amount from line 12 of that Form 8606

Line 16

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

-8-

If you didn’t 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 didn’t complete line 11, enter on
line 17 the amount from line 2 (or the
Instructions for Form 8606 (2020)

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 18

If your entry on line 18 is zero or less,
don’t include the result on 2020 Form
1040, 1040-SR, or 1040-NR, line 4b.
Include the full amount of the
distribution on 2020 Form 1040,
1040-SR, or 1040-NR, line 4a.

Part III—Distributions
From Roth IRAs

Complete Part III to figure the taxable
part, if any, of your 2020 Roth IRA
distributions.

Line 19

Don’t include on line 19 any of the
following.
• Distributions that you rolled over,
including distributions made in 2020 and
rolled over after December 31, 2020
(outstanding rollovers).
• Recharacterizations.
• Distributions that are a return of
contributions under Return of IRA
Contributions, earlier.
• Distributions made on or after age
591/2 if you made a contribution
(including a conversion or a rollover
from a qualified retirement plan) for any
year from 1998 through 2015.
• A one-time distribution to fund an
HSA. For details, see Pub. 969.
• Qualified charitable distributions
(QCDs). For details, see Are
Distributions Taxable? in chapter 1 of
Pub. 590-B.
• Distributions made upon death or due
to disability if a contribution was made
(including a conversion or a rollover
from a qualified retirement plan) for any
year from 1998 through 2015.
• 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 isn’t
taxable to you or your spouse.
Qualified disaster
distributions. Be sure to
CAUTION include on line 19 all qualified
disaster distributions made in 2020,
even if they were later repaid, unless
they fall under the 4th or 7th bullet
above.

!

If, after considering the items above,
you don’t have an amount to enter on
line 19, don’t complete Part III; your
Roth IRA distribution(s) isn’t taxable.
Instead, include your total Roth IRA
distribution(s) on 2020 Form 1040,
1040-SR, or 1040-NR, line 4a.
Instructions for Form 8606 (2020)

Line 20

If you had a qualified first-time
homebuyer distribution from your Roth
IRA and you made a contribution
(including a conversion or a rollover
from a qualified retirement plan) to a
Roth IRA for any year from 1998
through 2015, enter the amount of your
qualified expenses on line 20, but don’t
enter more than $10,000 reduced by the
total of all your prior qualified first-time
homebuyer distributions. For details,
see Are Distributions Taxable? in
chapter 2 of Pub. 590-B.

Line 22

Figure the amount to enter on line 22 as
follows.
• If you didn’t take a Roth IRA
distribution before 2020 (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 2020
(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 2020, see the Basis in Regular
Roth IRA Contributions Worksheet 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 in regular
contributions 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, don’t 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 2020 distributions from a Roth IRA
that are shown on line 23. The
-9-

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 2020 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
chart to figure the amount to enter on
line 24.
• If you didn’t take such a distribution
before 2020, enter on line 24 the total of
all your conversions to Roth IRAs.
These amounts are shown on line 14c
of your 1998, 1999, and 2000 Forms
8606 and line 16 of your 2001 through
2020 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 2020
reported on your Form 1040, Form
1040-SR, Form 1040A, or Form
1040-NR, and line 21 of your 2010 Form
8606. Don’t include amounts rolled in
from a designated Roth account since
these amounts are included on line 22.
• Increase or decrease the amount on
line 24 by any basis in conversions to
Roth IRAs and amounts rolled over from
a qualified retirement plan to a Roth IRA
received or transferred incident to
divorce. Also attach a statement similar
to the one explained in the last bulleted
item under Line 7, earlier.

Line 25b

If all your distributions are qualified
disaster distributions, enter the amount
from line 25a on line 25b. If you have
distributions unrelated to qualified
disasters, as well as qualified disaster
distributions, you will need to multiply
the amount on line 25a by a fraction.
The numerator of the fraction is your
total qualified disaster distributions and
the denominator is the amount from
Form 8606, line 21.
Example 1. In November 2020, you
received a $50,000 distribution,
unrelated to a qualified disaster, from
your Roth IRA (that you did not roll
over). Earlier, in May 2020, you
received a qualified disaster distribution
from your Roth IRA in the amount of
$200,000. You reported $100,000 on

2020 Form 8915-D and $100,000 on
2020 Form 8915-E. You only had one
disaster covered by Form 8915-D. You
had no other distributions. You will
report total distributions of $250,000 on
Form 8606, line 19. You have no
first-time homebuyer expenses reported
on line 20, so you would also enter
$250,000 on line 21. You then will
complete lines 22 through 24 as
instructed. Form 8606, line 25a, shows
an amount of $150,000. You will enter
$120,000 ($150,000 x
$200,000/$250,000) on line 25b. You
will also enter $60,000 ($120,000 x
$100,000/$200,000) on 2020 Form
8915-D, line 23; and $60,000 ($120,000
x $100,000/$200,000) on 2020 Form
8915-E, line 14.
Example 2. In November 2020, you
received a $50,000 distribution,
unrelated to a qualified disaster, from
your Roth IRA (that you did not roll
over). Earlier, in October 2020, you
received a qualified disaster distribution
from your Roth IRA in the amount of
$100,000. You reported all of the
$100,000 on 2020 Form 8915-E. You
had no other distributions. You will
report total distributions of $150,000 on
Form 8606, line 19. You have no
first-time homebuyer expenses reported
on line 20, so you would also enter
$150,000 on line 21. You then will
complete lines 22 through 24 as
instructed. Form 8606, line 25a, shows
an amount of $120,000. You will enter
$80,000 ($120,000 x
$100,000/$150,000) on line 25b. You
will also enter $80,000 on line 14 of
2020 Form 8915-E.
Example 3. In November 2020, you
received a $50,000 distribution,

unrelated to a qualified disaster, from
your Roth IRA (that you did not roll
over). Earlier, in May 2020, you
received a qualified disaster distribution
from your Roth IRA in the amount of
$300,000. You reported $100,000 on
2020 Form 8915-C, $100,000 on 2020
Form 8915-D, and $100,000 on 2020
Form 8915-E. You only had one disaster
covered by Form 8915-C and one
disaster covered by Form 8915-D. You
had no other distributions. You will
report total distributions of $350,000 on
Form 8606, line 7. You then will
complete lines 8 through 14 as
instructed. Form 8606, line 25a, shows
an amount of $315,000. You will enter
$270,000 ($315,000 x
$300,000/$350,000) on line 25b. You
will also enter $90,000 ($270,000 x
$100,000/$300,000) on 2020 Form
8915-C, line 24; $90,000 ($270,000 x
$100,000/$300,000) on 2020 Form
8915-D, line 23; and $90,000 ($270,000
x $100,000/$300,000) on 2020 Form
8915-E, line 14.

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

-10-

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.

Instructions for Form 8606 (2020)

Before you begin, see the Line 22 worksheet and Line 24 chart below.

Basis in Regular Roth IRA Contributions
Worksheet—Line 22

Keep for Your Records

Before you begin: You will need your Form 8606 for the most recent year prior to 2020 when you received a distribution.
Note. Don’t complete this worksheet if you never received a distribution from your Roth IRAs prior to 2020.

1. Enter the most recent year prior to 2020 you reported distributions on
Form 8606 (for example, 2 0 1 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter your basis in Roth IRA contributions reported on Form 8606 for the
year entered on line 1 (see Table 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Enter your Roth IRA distributions* reported on Form 8606 for the year
entered on line 1 (see Table 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Subtract line 3 from line 2. Enter zero if the resulting amount is zero or
less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Enter the total of all your regular contributions** to Roth IRAs after the
year entered on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Add lines 4 and 5. Enter this amount on your 2020 Form 8606,
line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.
3.
4.
5.
6.

*Excluding rollovers, recharacterizations, and contributions that you had returned to you.
**Excluding rollovers, conversions, and any contributions that you had returned to you.

Table 1 for Line 2 above
IF the year entered on Line 1 was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THEN enter on Line 2 the amount from the following line . . . . . .

2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2009, 2008, 2007,
2006, 2005, or 2004

Form 8606, line 22

2010

Form 8606, line 29

2003, 2002, 2001

Form 8606, line 20

2000 or 1999

Form 8606, line 18d

1998

Form 8606, line 19c

Table 2 for Line 3 above
IF the year entered on Line 1 was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THEN enter on Line 3 the amount from the following line . . . . . .

2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2009, 2008, 2007,
2006, 2005, 2004, 2003, 2002, or 2001

Form 8606, line 19

2010

Form 8606, line 26

2000 or 1999

Form 8606, line 17

1998

Form 8606, line 18

Instructions for Form 8606 (2020)

-11-

Basis in Roth IRA Conversions and Rollovers From Qualified Retirement Plans to
Roth IRAs—Line 24
IF the most recent year prior to 2020 in which
you had a distribution1 in excess of your basis
in contributions was . . . . . . . . . . . . . . .

THEN enter on Form 8606, line 24, this amount . . . . .

PLUS the sum of the amounts on the
following lines . . . . . . . . . . . . . .

2019
(your 2019 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2019 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2020 Form 8606 and
certain rollovers 3 reported on your
2020 return.

2018
(your 2018 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2018 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2019 and 2020 Forms
8606 and certain rollovers3 reported on
your 2019 and 2020 tax returns.

2017
(your 2017 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2017 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2018 through 2020
Forms 8606 and certain rollovers 3
reported on your 2018 through 2020
tax returns.

2016
(your 2016 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2016 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2017 through 2020
Forms 8606 and certain rollovers3
reported on your 2017 through 2020
tax returns.

2015
(your 2015 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2015 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2016 through 2020
Forms 8606 and certain rollovers3
reported on your 2016 through 2020
tax returns.

2014
(your 2014 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2014 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2015 through 2020
Forms 8606 and certain rollovers3
reported on your 2015 through 2020
tax returns.

2013
(your 2013 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2013 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2014 through 2020
Forms 8606 and certain rollovers3
reported on your 2014 through 2020
tax returns.

2012
(your 2012 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2012 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2013 through 2020
Forms 8606 and certain rollovers3
reported on your 2013 through 2020
tax returns.

2011
(your 2011 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2011 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2012 through 2020
Forms 8606 and certain rollovers3
reported on your 2012 through 2020
tax returns.

2010
(your 2010 Form 8606, line 29, was less than
line 26 of that Form 8606)

The excess, if any, of your 2010 Form 8606, line 31, over
line 30 of that Form 8606
(refigure line 30 without taking into account any amount
entered on Form 8606, line 27).

Line 16 of your 2011 through 2020
Forms 8606 and certain rollovers3
reported on your 2011 through 2020
tax returns,
OR
Line 16 of your 2011 through 2020
Forms 8606; lines 16 and 21 of your
2010 Form 86064 if you didn’t check
the boxes on line 19 or 24 of your 2010
Form 8606; and certain rollovers3
reported on your 2011 through 2020
tax returns.

2009
(your 2009 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2009 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2010 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2011 through 2020 tax returns.

2008
(your 2008 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2008 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2009 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2009 and 2011 through 2020
tax returns.

2007
(your 2007 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2007 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2008 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2006
(your 2006 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2006 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2007 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

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. Amounts rolled over from qualified retirement plans to Roth IRAs from your Form 1040, 1040-SR, or 1040-NR, line 5a for 2020 returns; Form 1040 or 1040-SR,
line 4c for 2019 returns;
Form 1040, line 4a for 2018 returns, and line 16a for 2017 and earlier returns; Form 1040A, line 12a (Form 1040A was retired in 2018); or Form 1040-NR, line 17a
for 2019 and earlier returns.
4. Don’t include any in-plan Roth rollovers entered on line 21.

-12-

Instructions for Form 8606 (2020)

Continued on next page

Basis in Roth IRA Conversions and Rollovers From Qualified Retirement Plans to
Roth IRAs—Line 24 (continued)
IF the most recent year prior to 2020 in which
you had a distribution1 in excess of your basis
in contributions was . . . . . . . . . . . . . . .

THEN enter on Form 8606, line 24, this amount . . . . .

PLUS the sum of the amounts on the
following lines . . . . . . . . . . . . . .

2005
(your 2005 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2005 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2006 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2004
(your 2004 Form 8606, line 22, was less than
line 19 of that Form 8606)

The excess, if any, of your 2004 Form 8606, line 24, over
line 232 of that Form 8606.

Line 16 of your 2005 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2003
(you had an amount on your 2003 Form 8606,
line 21)

The excess, if any, of your 2003 Form 8606, line 22, over
line 21 of that Form 8606.

Line 16 of your 2004 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2002
(you had an amount on your 2002 Form 8606,
line 21)

The excess, if any, of your 2002 Form 8606, line 22, over
line 21 of that Form 8606.

Line 16 of your 2003 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2001
(you had an amount on your 2001 Form 8606,
line 21)

The excess, if any, of your 2001 Form 8606, line 22, over
line 21 of that Form 8606.

Line 16 of your 2002 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

2000
(you had an amount on your 2000 Form 8606,
line 19)

The excess, if any, of your 2000 Form 8606, line 25, over
line 19 of that Form 8606.

Line 16 of your 2001 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

The excess, if any, of your 1999 Form 8606, line 25, over
line 19 of that Form 8606.

Line 14c of your 2000 Form 8606;
line 16 of your 2001 through 2020
Forms 8606; line 21 of your 2010 Form
86064; and certain rollovers3 reported
on your 2008, 2009, and 2011 through
2020 tax returns.

1999
(you had an amount on your 1999 Form 8606,
line 19)

Line 14c of your 1999 and 2000 Forms
8606; line 16 of your 2001 through
1998
of your 1998 Form 8606, line 14c, over 2020 Forms 8606; line 21 of your 2010
(you had an amount on your 1998 Form 8606, The excess, if any,
line
20
of
that
Form
8606.
Form 86064; and certain rollovers3
line 20)
reported on your 2008, 2009, and 2011
through 2020 tax returns.
Didn’t have such a distribution in excess of
your basis in contributions

The amount from your 2020 Form 8606, line 16

Line 14c of your 1998 through 2000
Forms 8606; line 16 of your 2001
through 2019 Forms 8606; line 21 of
your 2010 Form 86064; and certain
rollovers3 reported on your 2008, 2009,
and 2011 through 2020 tax returns.

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. Amounts rolled over from qualified retirement plans to Roth IRAs from your Form 1040, 1040-SR, or 1040-NR, line 5a for 2020 returns; Form 1040 or 1040-SR,
line 4c for 2019 returns;
Form 1040, line 4a for 2018 returns, and line 16a for 2017 and earlier returns; Form 1040A, line 12a (Form 1040A was retired in 2018); or Form 1040-NR, line 17a
for 2019 and earlier returns.
4. Don’t include any in-plan Roth rollovers entered on line 21.

Instructions for Form 8606 (2020)

-13-