Does each ROTH Conversion need a 8606?
If I make two Simple IRA conversions to two separate Roths does this require two separate 8606 tax forms? Or do both go on the same 8606?
Does this impact the future if I want to re-characterize just one?
If I make two Simple IRA conversions to two separate Roths does this require two separate 8606 tax forms? Or do both go on the same 8606?
Does this impact the future if I want to re-characterize just one?
Permalink Submitted by Alan Spross on Thu, 2011-03-10 23:33
You only use one 8606 and total the conversions. If you recharacterize all or part of either of the conversions, you would just reduce the 8606 to show the amount that remains converted. You should also include an explanatory statement showing the amounts and dates of the conversions being recharacterized and the amount and date of the recharacterization.
Be sure that you have met the 2 year holding period for distributions from a SIMPLE IRA. And if you have and recharacterize any part of the conversions, the recharacterized dollars should go to a TIRA. They cannot go back to the SIMPLE IRA.