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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121100  
Subject: Re: F/UP TMFPMarti, IRA Excess Contrib Date: 3/31/2008 6:41 PM
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First, we are both over 59 1/2 and I assume no penalty. I guess this with the code 8, results in no entry for line 60 of the 1040.

If you feel like playing with it, you should get the same result with code 1. The key is that you're both over 59 1/2, so no early distribution penalty no matter what the reason for the distribution.

Finally, the explanatory note. First, I went to the "explain" screen and entered an explanation of the excess contribution and withdrawal> Tehn when I ran my review, I had 2 errors. TT wanted me to provide an explanation for each of the IRAs on a form 8606. So I repeated the explanations with the separate earnings/loss detailed. When I printed my return, I had a single page with 3 explanatory notes. The one I entered at line 15 and the 2 8606s. BTW, these are all just listed in paragraph form with references to form & line number (no indications that there is an 8606).

Hopefully, I can just delete the one at line 15, stay with the 2 from 8606, and be done !!!


Software strikes again. If you look at the low-tech instructions for Form 8606, it specifically tells you not to file an 8606. You're supposed to just attach an explanation keyed to line 15 of the 1040. Why TT wants you to explain entries on a form you're not filing is beyond me.

Were I you, I'd call it a wrap as it is.

Phil
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