2020 Instructions for Form 8606 - IRS tax forms

1 2020 Department of the Treasury Internal Revenue Service Instructions for form 8606. Nondeductible IRAs Section references are to the Internal Revenue apply to your return if you received a Nondeductible contributions you Code unless otherwise noted. distribution from your IRA or other made to traditional IRAs;. retirement plan and you were impacted Distributions from traditional , SEP, or General Instructions by the coronavirus for your 2020 SIMPLE IRAs, if you have a basis in return, these qualified disaster these IRAs;. Future Developments distributions are those in 2020 form Conversions from traditional , SEP, or For the latest information about 8915-E, which covers the SIMPLE IRAs to Roth IRAs; and developments related to 2020 form coronavirus-related distributions.

2 Distributions from Roth IRAs. 8606 and its Instructions , such as form 1040-NR. form 1040-NR, Additional information. For more legislation enacted after they were Nonresident Alien Income Tax Return, details on IRAs, see Pub. 590-A, published, go to is being redesigned for 2020 to look like Contributions to Individual Retirement form 1040. Like forms 1040 and Arrangements (IRAs); and Pub. 590-B, What's New 1040-SR, 2020 form 1040-NR will be Distributions from Individual Retirement Coronavirus-related distributions. If supplemented by Schedules 1, 2, and 3 Arrangements (IRAs). you or a member of your household was ( form 1040). If you received distributions impacted by the coronavirus and you Taxable compensation.

3 For tax years TIP from a traditional , SEP, or made withdrawals from your retirement beginning after December 31, 2019, SIMPLE IRA in 2020 and you plan in 2020 before December 31, you taxable compensation includes certain have never made nondeductible may have coronavirus-related non-tuition fellowship and stipend contributions (including nontaxable distributions eligible for special tax payments. For details, see 2020 Pub. amounts you rolled over from a qualified benefits. Coronavirus-related 590-A, Contributions to Individual retirement plan) to these IRAs, don't distributions are reported on form Retirement Arrangements (IRAs). report the distributions on 2020 form 8915-E, Qualified 2020 Disaster 8606.

4 Instead, see Lines 4a and 4b in Difficulty of care payments. For Retirement Plan Distributions and the 2020 Instructions for form 1040 and contributions after December 20, 2019, Repayments, as qualified 2020 disaster 1040-SR, or the 2020 Instructions for you may elect to increase the distributions. See the Instructions for form 1040-NR. Also, to find out if any of nondeductible IRA contribution limit by form 8915-E. Your form 8606 may be your contributions to traditional IRAs are some or all of the amount of difficulty of impacted by those distributions. See, for deductible, see the Instructions for care payments, which are a type of example, Tax relief for qualified 2018, Schedule 1 ( form 1040). qualified foster care payment, received.

5 2019, and 2020 disaster distributions For details, see 2020 Pub. 590-A, below. Also see, later, Who Must File, Line 15b, Line 19, and Line 25b. Contributions to Individual Retirement Who Must File Arrangements (IRAs). File form 8606 if any of the following At the time these Instructions apply. Modified AGI limit for Roth IRA con- ! went to print, legislation was You made nondeductible CAUTION being considered that would tributions increased. You can contribute to a Roth IRA for 2020 only if contributions to a traditional IRA for expand the scope of form 8915-E to 2020, including a repayment of a your 2020 modified adjusted gross cover disasters other than the qualified disaster or reservist income (AGI) for Roth IRA purposes is coronavirus.

6 Go to distribution. less than: or to find out You received distributions from a whether the legislation was enacted. $206,000 if married filing jointly or qualifying widow(er); traditional , SEP, or SIMPLE IRA in 2020. $139,000 if single, head of and your basis in these IRAs is more Tax relief for qualified 2018, 2019, than zero. For this purpose, a and 2020 disaster distributions. household, or married filing separately and you didn't live with your spouse at distribution doesn't include a distribution Special rules may apply to your return if that is rolled over (other than a you received a distribution from your any time in 2020; or $10,000 if married filing separately repayment of a qualified disaster IRA or other retirement plan and your distribution (see 2020 forms 8915-C, main home was in certain Presidentially and you lived with your spouse at any time in 2020.))

7 8915-D, and 8915-E)), qualified declared disaster areas. For your 2020 charitable distribution, one-time return, these qualified disaster See Roth IRAs, later. distribution to fund an HSA, conversion, distributions are those in 2020 form Due date for contributions. The due recharacterization, or return of certain 8915-C, Qualified 2018 Disaster date for making contributions for 2020 to contributions. Retirement Plan Distributions and your IRA for most people is Thursday, You or your spouse transferred all or Repayments, and its Instructions ; and April 15, 2021. part of their traditional , SEP, or SIMPLE. 2020 form 8915-D, Qualified 2019 IRA in 2020 to the other spouse under a Disaster Retirement Plan Distributions Purpose of form divorce or separation agreement where and Repayments, and its Instructions .

8 Use form 8606 to report: As noted above, special rules also may Dec 10, 2020 Cat. No. 25399E. the transfer resulted in a change in the Contributions. An overall contribution from a qualified retirement plan) set up basis of the IRA of either spouse. limit applies to traditional IRAs and Roth for your benefit, and You converted an amount from a IRAs. See Overall Contribution Limit for 2. The distribution is made: traditional , SEP, or SIMPLE IRA to a traditional and Roth IRAs, later. Roth IRA in 2020. a. On or after the date you reach Contributions to a traditional IRA may be age 591/2, You received distributions from a fully deductible, partially deductible, or Roth IRA in 2020 (other than a rollover, completely nondeductible.

9 B. After your death, recharacterization, or return of certain c. Due to your disability, or contributions see the Instructions for Basis. Your basis in traditional , SEP, and SIMPLE IRAs is the total of all your d. For qualified first-time homebuyer Part III, later). expenses. You received a distribution from an nondeductible contributions and inherited traditional , SEP, or SIMPLE nontaxable amounts included in Contributions. You can contribute to a IRA that has a basis, or you received a rollovers made to these IRAs minus the Roth IRA for 2020 only if your 2020. distribution from an inherited Roth IRA total of all your nontaxable distributions, modified AGI for Roth IRA purposes is that wasn't a qualified distribution.

10 You adjusted if necessary (see the less than: may need to file more than one form Instructions for line 2, later). $206,000 if married filing jointly or 8606. See IRA with basis under What if Keep track of your basis to qualifying widow(er);. You Inherit an IRA? in Pub. 590-B for figure the nontaxable part of $139,000 if single, head of more information. ! CAUTION your future distributions. household, or if married filing separately and you didn't live with your spouse at Note. If you recharacterized a 2020 SEP IRAs any time in 2020; or Roth IRA contribution as a traditional A simplified employee pension (SEP) is $10,000 if married filing separately IRA contribution, or vice versa, treat the and you lived with your spouse at any contribution as having been made to the an employer-sponsored plan under which an employer can make time in 2020.