[[ I talked with the IRS on Monday. Here is what they said. I should ignore Part I of Form 8606 in my case because I had not had any nondeductible contributions before.]]But that's not what you said in your original post, at least as I recall it. So I guess one of us is confused as to what you REALLY did. [[ Note: I haven't made any nondeductible contributions to the traditional IRA before and after talking to the IRS, I did not in 98 either. Hence, line 15 of 8606 would be 0 after all. Surprise to me...]]But again, in your original post, you indicated that you DID make non-deductible IRA contributions. We can only answer the question that you give to us. Sorry. [[ The operator then suggested the next step, and I had figured it out on my own: when you have the taxable amount to plug into the 1040 form from the rollover, you can then use this to find your modified adjusted gross income. THIS can be used in the IRA deduction worksheet to find the deductible portion of your contributions for 98 to enter on the IRA deduction line in the 1040. And then you only get taxed once on your income.]]That's right...but if part of your IRA contribution is NON-DEDUCTIBLE, then you DO need to complete Form 8606, part I. And if you DID make a traditional IRA contribution for 1998, it might be in your best interest to have it be deductible )if allowable) in 1998, since you can then spread the conversion income over the 4 year period. TMF TaxesRoy
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