Publication 590: Individual Retirement Arrangements (IRAs);

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Form 8606 Nondeductible IRAs 2004. Summary: This is an example of Form 8606 (2004) as pertains to the description in the text. The line items completed are:

“Name. If married, file a separate form for each spouse required to file Form 8606. See page 5 of the instructions” field contains Bill King

“Your social security number” field contains 002-00-0000

Under “Part I: Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE. IRAs”:

“1. Enter your nondeductible contributions to traditional IRAs for 2004, including those made for 2004 from January 1, 2005, through April 15, 2005 (see page 5 of the instructions)” field contains 0

“2. Enter your total basis in traditional IRAs for 2003 and earlier years (see page 6 of the instructions)” field contains 2,000

“3. Add lines 1 and 2” field contains 2,000

“4. Enter those contributions included on line 1 that were made from January 1, 2005, through April 15, 2005” field contains 0

“5. Subtract line 4 from line 3” field contains 2,000

“6. Enter the value of all your traditional, SEP., and SIMPLE. IRAs as of December 31, 2004, plus any outstanding rollovers (see page 6 of the instructions)” field contains 1,800

“7. Enter your distributions from traditional, SEP., and SIMPLE. IRAs in 2004. Do not include rollovers, conversions to a Roth IRA., certain returned contributions, or recharacterizations of traditional IRA. contributions (see page 6 of the instructions)” field contains 600

“9. Add lines 6, 7, and 8” field contains 2,400

“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 .833

“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 500

“13. Add lines 11 and 12. This is the nontaxable portion of all your distributions” field contains 500

“14. Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2004 and earlier years” field contains 1,500

“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” field contains 100