Form 8606
I need your help with Form 8606.
I contributed $2,400 to my TIRA as non-deductible in 2009. In 2010 I opened Roth IRA and contributed $3,600 for 2009 and $500 for 2010. Later I find out that I am not eligible to contribute to Roth IRA. I sent forms for re characterization of Roth IRA to TIRA for all amount of $4,100. I didn’t include Form 8006 in my taxes.
I made same mistake for my husband. I contributed $6000 to my husband ROTH IRA for 2009 in March 2010 for which he is not eligible. I file forms for re characterization for him also.
I read that we have to file form 8606 for each of us. Do I need to include $2,400 only in my form or all $6000? And what should be included in form for my husband?
Thank you. Sofia
Permalink Submitted by Alan Spross on Fri, 2010-04-02 18:49
Sounds like you already filed your 2009 taxes, but this is not a problem.
In about 6 weeks after the IRS has processed your return, you need to send a stand alone 8606 for each of you to report the non deductible TIRA contribution for 2009. The 8606 forms are individual and hold only one SS number. This will not affect the other parts of your 2009 return or the tax liability for 2009.
They are also cumulative, so this is a good time for you both to make sure that any prior year 8606 forms are correct. If not, you can revise them at the same time you submit your 2009 8606 forms. But whatever each of you had for your basis from prior years will be increased by your 2009 non deductible contribution including the recharacterized amounts. Your non deductible contribution was 6,000. Do not show your 2010 contribution here as that must be reported next year with your 2010 return. Your husband’s is also 6,000 for 2009.
Permalink Submitted by Sofia Medvedev on Sat, 2010-04-03 02:04
Thank you Alan. I checked form 5329 and it is for Early Distributions which we didn’t take. Is it an error?
Permalink Submitted by Alan Spross on Sat, 2010-04-03 02:45
Sorry, I edited the first line to change 5329 to 8606, so forget the 5329.