Hiya:

New to this forum – have had a chance to browse through a few of the posts / replies, but not all, so sincere apologies if already answered (happy to read relevant posts if you point me to them).

Several IRA / pension-related questions but a bit of background first: I have been based in the UK since 2004, but am a US citizen so file US taxes every year. Until mid-2007 was on US payroll (i.e. W-2) and was part of 401(k) plan (with max contributions in that plan since 2001 & max IRA contributions since 2003). I am now fully on UK payroll (since Sep 2007) and am covered by a company pension plan (“stakeholder”) and have my own personal pension plan (SIPP).

2003-2006 IRA contributions were in a Roth, but my MAGI breached the limit in 2006, so I re-characterized part of the Roth contribution into a TIRA (got a 1099-R). Have been contributing to the TIRA since – partially in 2006 (i.e. in addition to re-characterized amount), and to the limit in 2007 and 2008.

Questions:

1. I don’t recall (& my records show nothing) having filed any forms related to the Roth-to-TIRA re-characterization in 2006 – I did get a 1099-R from Fidelity, but can’t see any record of Form 8606 or 5329 or anything else. Is this a problem, and if so, what’s the best way to fix that? The re-characterization was included on the 1040 as a non-taxable distribution but I don’t know if Form 1099-R was filed and I can’t see that any other forms were from my records (unless tax firm submitted something I don’t know about, which I doubt).

2. The $600 contribution which I made in 2006 into the TIRA directly (separate from the re-characterization) was treated as deductible, when my MAGI was well above the $60K 2006 limit (as I was covered by the 401(k)). AGI was c. $58,000, but I assume it’s only MAGI that counts, so seems like this was a mistake – if so, any thoughts on how best to fix that? Presumably the $600 contribution should have been non-deductible and hence 8606 should have been filed?

3. Can I continue contributing to TIRA, now that I am not on US payroll and my income is wholly derived from outside US (although not all is “excluded” be FEIC / housing deductions – but typically none would be US-source, except for any capital gains / losses from US accounts I hold). I am covered by my UK company’s pension plan, but presumably that does not matter for US tax purposes, so I am assuming I can contribute to TIRA and that all contributions will be fully deductible – is that correct?

4. I have never filed 8606 and the forums suggest that’s not a big issue – I can file them now (is that just those forms and nothing else?), though may have to pay a $50 penalty, but sounds like IRS does not collect?

5. Finally, do you know if any contributions I make to my personal UK pension plan and / or my UK company pension plan will be tax-deductible in the US – just like the IRA / 401(k) are? If yes, is there any special form(s) to file, etc.? If no, does that apply for any UK (or non-US) pension arrangement or just specific types?

Sorry for the many questions, but would be grateful for any answer, even if partial. Would also be grateful if you can point me to specialist practitioners if best to take up matters with them further.

Many thanks in advance, Ivo