Form 8606 (2007) Nondeductible IRAs

Summary: this is a sample of page 1 of the 2007 Form 8606 completed to show reporting required by recovery assistance distributions. The following fields are completed.

Name. If married, file a separate form for each spouse required to file Form 8606. See page 5 of the instructions. field contains Margaret Maple
Your social security number field contains 789-00-1234
Home address (number and street, or P.O. box if mail is not delivered to your home) field contains 239 S. Main Street
City, town, or post office, state, and ZIP code field contains Greensburg, KS 67054
1. Enter your nondeductible contributions to traditional IRAs for 2007, including those made for 2007 from January 1, 2008 through April 15, 2008 (see page 5 of the instructions) field contains -0-
2. Enter your total basis in traditional IRAs (see page 5 of the instructions) field contains 10,000
3. Add lines 1 and 2 field contains 10,000
4. Enter those contributions included on line 1 that were made from January 1, 2008 through April 15, 2008 filed contains -0-
5. Subtract line 4 from line 3 field contains 10,000
6. Enter the value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2007, plus any outstanding rollovers (see page 6 of the instructions) field contains 50,000
7. Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2007. Do not include rollovers, qualified charitable distributions, a one-time distribution to fund an HSA, conversions to a Roth IRA, certain returned contributions, or recharacterizations of traditional IRA contributions (see page 6 of the instructions) field contains 30,000
8. Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2007. Do not include amounts converted that you later recharacterized (see page 6 of the instructions). Also enter this amount on line 16 field contains -0-
9. Add line 6, 7, and 8 field contains 80,000
10. Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3 places. If the result is 1.000 or more, enter 1.000 field contains × .125
11. Multiply line 8 by line 10. The is the nontaxable portion of the amount you converted to Roth IRAs. Also enter this amount on line 17. field contains -0-
12. Multiply line 7 by line 10. This is the nontaxable portion of your distributions that you did not convert to a Roth IRA. field contains 3,750
13. Add line 11 and 12. This is the nontaxable portion of all your distributions field contains 10,000
14. Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2007 and earlier years field contains 6,250
15. Taxable amount. Subtract line 12 from line 7. Also include this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. Note: You may be subject to an additional 10% tax on the amount on line 15 if you were under age 59 1/2 at the time of the distribution (see page 6 of the instructions) field contains 10,000
Written in the bottom margin of the form Qualified recovery assistance distributions field contains 13,125
Written in the bottom margin of the form, below qualified recovery assistance distributions Other distributions field contains 13,125

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