Nondeductible IRA Contributions, OMB No. 1545-1007

IRA Basis, and Nontaxable IRA Distributions Form 8606

© Please see Recordkeeping Requirements on page 2. Department of the Treasury

Internal Revenue Service

Attachment

© Attach to Form 1040, Form 1040A, or Form 1040NR. Sequence No. 47

Name. (If married, file a separate Form 8606 for each spouse. See instructions.) Your social security number

Home address (number and street, or P.O. box if mail is not delivered to your home) Apt. no. Fill in Your Address Only

If You Are Filing This

Form by Itself and Not

With Your Tax Return

City, town or post office, state, and ZIP code

1 Enter the total value of ALL your IRAs as of 12/31/91. (See instructions.) 1

Enter your IRA contributions for 1991 that you choose to be nondeductible. Include those made during

1/1/92–4/15/92 that were for 1991. (See instructions.) 

2

2

3 Enter your total IRA basis for 1990 and prior years. (See instructions.) 3

Add lines 2 and 3. If you did not receive any IRA distributions (withdrawals) in 1991, skip lines 5

through 13 and enter this amount on line 14

4

4

Enter only those contributions included on line 2 that were made during 1/1/92–4/15/92. (This amount

will be the same as line 2 if all of your nondeductible contributions for 1991 were made in 1992 by

4/15/92.) (See instructions.)

5

5

6 Subtract line 5 from line 4 6

Enter the amount from line 1 plus any outstanding rollovers. (See

instructions.) 

7

7

Enter the total IRA distributions received during 1991. Do not include

amounts rolled over before 1/1/92. (See instructions.) 

8

8

9 Add lines 7 and 8 9

10 . Divide line 6 by line 9 and enter the result as a decimal (to at least two

places). Do not enter more than “1.00”

10

Multiply line 8 by line 10. This is the amount of your nontaxable distributions for 1991. (See

instructions.) ©

11

11

12 Subtract line 11 from line 6. This is the basis in your IRA(s) as of 12/31/91 12

13 Enter the amount, if any, from line 5 13

14 Add lines 12 and 13. This is your total IRA basis for 1991 and prior years © 14

Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my

knowledge and belief, it is true, correct, and complete. Sign Here Only If You

Are Filing This Form

by Itself and Not With

Your Tax Return © Your signature © Date

Paperwork Reduction Act Notice.—We

ask for the information on this form to

carry out the Internal Revenue laws of the

United States. You are required to give us

the information. We need it to ensure that

you are complying with these laws and to

allow us to figure and collect the right

amount of tax.

Who Must File.—You must file Form 8606

for 1991 if either of the following applies:

● You made nondeductible contributions

to your IRA for 1991, or General Instructions ● You received IRA distributions in 1991

and you have at any time made

nondeductible contributions to any of your

IRAs.

The time needed to complete and file

this form will vary depending on individual

circumstances. The estimated average time

is: Recordkeeping, 26 minutes; Learning

about the law or the form, 7 minutes;

Preparing the form, 22 minutes; and

Copying, assembling, and sending the

form to the IRS, 20 minutes.

Purpose of Form.—You must use Form

8606 to report your IRA contributions that

you choose to be nondeductible. You may

wish to make nondeductible contributions,

for example, if all or part of your

contributions are not deductible because

of the income limitations for IRAs. First,

figure your deductible contributions using

the instructions for Form 1040 or Form

1040A, whichever apply to you. Report the

deductible contributions on Form 1040,

Form 1040A, or Form 1040NR. Then, enter

on line 2 of Form 8606 the amount you

choose to be nondeductible.

When and Where To File.—Attach Form

8606 to your 1991 Form 1040, Form

1040A, or Form 1040NR.

If you are required to file Form 8606, but

do not have to file an income tax return

because you do not meet the requirements

for filing a return, you still have to file a

Form 8606 with the Internal Revenue

Service at the time and place you would

be required to file Form 1040, Form 1040A,

or Form 1040NR.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form more

simple, we would be happy to hear from

you. You can write to both the Internal

Revenue Service, Washington, DC 20224,

Attention: IRS Reports Clearance Officer,

T:FP; and the Office of Management and

Budget, Paperwork Reduction Project

(1545-1007), Washington, DC 20503. DO

The part of any distributions you receive

attributable to nondeductible contributions

will not be taxable. If you have at any time

made nondeductible contributions, also

use Form 8606 to figure the nontaxable

part of any IRA distributions you received

in 1991. Line 11 will show the amount that

is not taxable.

Cat.No. 63966F Form 8606 (1991)

Penalty for Not Filing Form 8606.—The

law provides for a penalty if you make

nondeductible IRA contributions and do

not file Form 8606. You will have to pay a

$50 penalty for each failure to file Form

8606, unless you can show that the failure

to file was due to reasonable cause.

NOT send this form to either of these

offices. Instead, see When and Where To

File on this page.
Form 8606 (1991) Page 2

minus the amount on line 5 cannot be

more than the IRA contributions you

actually made in 1991.

● Forms 1040 (or Forms 1040A or Forms

1040NR) filed for each year you make a

nondeductible contribution,

● Forms 5498 or similar statements

received each year showing contributions

you made,

Example. You made contributions of

$1,000 in 1991, and $1,000 in 1992.

$1,500 of your contributions are deductible

and $500 are nondeductible. You choose

$500 of your contribution in 1991 to be

nondeductible. In this case, the $500

would be entered on line 2, but not on line

5, and would become part of your basis for

1991.

You may also choose to treat any part of

deductible contributions as nondeductible.

To do this, include on line 2 of Form 8606

any deductible contributions that you are

treating as nondeductible.

● Forms 5498 or similar statements you

received showing the value of your IRA(s)

for each year you received a distribution,

and

● Forms 1099-R and W-2P received for

each year you received a distribution.

Note: You cannot take a deduction for the

amount on line 2.

Line 6.—Although the 1991 IRA

contributions you made during 1/1/92–

4/15/92 (line 5) can be treated as

nondeductible for purposes of line 2, they

are not included in your basis for purposes

of figuring the nontaxable part of any

distributions you received in 1991. This is

the reason you subtract line 5 from line 4.

Additional Information.—For more

information on nondeductible contributions,

IRA basis, and distributions, get Pub. 590,

Individual Retirement Arrangements (IRAs).

If none of your contributions are

deductible, you may still choose to make

a nondeductible contribution up to a

maximum of $2,000 (but not more than

your earned income). Enter your

contributions that you are treating as

nondeductible on line 2 of Form 8606.

Line 7.—Enter the amount from line 1 plus

any outstanding rollovers. A rollover is a

tax-free distribution from one IRA that is

then contributed to another IRA. The

rollover contribution must be made within

60 days of receiving the distribution from

the first IRA. An outstanding rollover is

any amount distributed to you from one

IRA within 60 days of the end of 1991

(between November 2 and December 31)

that you did not roll over to another IRA by

12/31/91, but that you roll over to another

IRA in 1992 within the normal 60-day

rollover period.

If contributions were also made to an

IRA for your nonworking spouse and none

of the contributions are deductible, you

may still make nondeductible contributions

up to a maximum of $2,250 (but not more

than your earned income). Enter on line 2

of your Form 8606 the total nondeductible

contributions that you are making to your

IRA. Enter the balance on line 2 of your

nonworking spouse’s Form 8606. You

cannot contribute more than $2,000 to

either your IRA or your spouse’s IRA. Also,

the total of the two amounts cannot be

more than $2,250 and not more than your

earned income. Amending Form 8606.—After you file your

return, you may change, if you wish, a

nondeductible contribution made on a prior

year’s return to a deductible contribution

or vice versa. To do this, fill out a new

Form 8606 showing the revised information

and attach it to Form 1040X, Amended

U.S. Individual Income Tax Return. Send

both of these forms to the Internal

Revenue Service Center shown in the

Form 1040X instructions for your area.

If you do not have any outstanding

rollovers, line 7 will be the same as line 1.

If you used IRA Worksheet 1 in the

instructions for Form 1040 or Form

1040A, the amount shown on line 3 of that

worksheet is the amount of your

contributions that you may deduct.

However, you may choose to make all or

part of that amount nondeductible. Enter

on line 2 of your Form 8606 the difference

between the amount you are deducting

and the amount shown on line 3 of IRA

Worksheet 1.

Line 8.—Do not include on line 8 any

distributions that were (1) received in 1991

and rolled over to another IRA by

12/31/91, (2) outstanding rollovers included

on line 7, (3) contributions under Internal

Revenue Code section 408(d)(4) that were

returned to you on or before the due date

of the return, or (4) excess contributions

under Internal Revenue Code section

408(d)(5) that were returned to you after

the due date of the return.

Specific Instructions

Note: If you made nondeductible

contributions for 1991 and you also

received an IRA distribution in 1991, you

may have to make a special computation

before filling out this form. See Pub. 590

for details. If you have to make the special

computation, Pub. 590 will tell you the

lines on Form 8606 that you must fill out.

If contributions were made to an IRA for

your nonworking spouse, the amount

shown on line 8 of IRA Worksheet 1 is the

amount of the allowable deduction for your

nonworking spouse’s IRA. However, you

can treat all or part of that amount as

nondeductible. Enter on line 2 of your

nonworking spouse’s Form 8606 the

difference between the amount that is

deducted for your nonworking spouse and

the amount on line 8 of IRA Worksheet 1.

Line 11.—This is the amount of your

nontaxable IRA distributions for 1991.

Subtract this amount from your total

distributions shown on line 8. The

difference is your taxable distributions to

be reported on Form 1040, line 16b, or

Form 1040A, line 10b, whichever applies.

Name and Social Security Number.—

Enter your name and social security

number. If you file a joint return on Form

1040 or Form 1040A, show the name and

social security number of the spouse

whose IRA information is shown.

Line 12.—The basis in your IRA as of

12/31/91 is the total of your nondeductible

IRA contributions made in 1991 and prior

years minus the total of any nontaxable

IRA distributions received in those years. If

you have basis in your IRA(s), part of each

subsequent IRA distribution will be

nontaxable until your basis is reduced to

zero.

Line 1.—Enter the total value of ALL your

IRAs as of 12/31/91. You should receive a

statement by 1/31/92 for each IRA account

showing the value on 12/31/91.

Line 3.—Your total IRA basis for 1990 and

prior years is the total of all your

nondeductible IRA contributions for 1987

through 1990 minus the total of any

nontaxable IRA distributions received in

those years. If this is the first year you are

required to file Form 8606, enter zero. If

you filed a 1990 or 1989 Form 8606, enter

the amount from line 14 of the last Form

8606 you filed. Otherwise, enter the total of

the amounts from lines 7 and 16 of your

1988 Form 8606. Or, if you didn’t file a

1988 Form 8606, enter the total of the

amounts from lines 4 and 13 of your 1987

Form 8606.

Line 2.—If you used IRA Worksheet 2 in

the instructions for Form 1040 or Form

1040A, enter on line 2 of Form 8606 any

nondeductible contributions shown on line

10 of that worksheet in the Form 1040

instructions or line 8 of that worksheet in

the Form 1040A instructions. If any

nondeductible contributions were made to

an IRA for your nonworking spouse,

complete a separate Form 8606 for your

spouse. Enter on line 2 of your spouse’s

Form 8606 any nondeductible

contributions for your nonworking spouse

from the appropriate lines of IRA

Worksheet 2.

Line 14.—Your total IRA basis for 1991

and prior years includes your IRA basis as

of 12/31/91 and any nondeductible IRA

contributions for 1991 that you made in

1992 by 4/15/92. This amount will be used

on Form 8606 in future years if you make

nondeductible IRA contributions or receive

distributions.

Line 5.—If you made contributions both in

1991 and 1992 that are for 1991, you may

choose to apply the contributions made in

1991 first to nondeductible contributions

and then to deductible contributions, or

vice versa. However, the amount on line 2

Recordkeeping Requirements.—To verify

the nontaxable part of distributions from

your IRA, keep a copy of this form together

with copies of the following forms and

records until all distributions are made

from your IRA(s):

Penalty for Overstatement.—If you

overstate your nondeductible contributions

on this form for any tax year, you must pay

a penalty of $100 for each overstatement,

unless it was due to reasonable cause.