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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120799  
Subject: Re: Form 8606 impasse (Roth Conversion) Date: 2/11/1999 7:23 PM
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[[In 1998 I contributed $2K to my IRA, and later
converted the IRA to a Roth. A portion of my
1998 contribution will be non-deductible because
my income falls in the phase-out range for
IRA deductions.]] can read about how this all works in my series of posts in the Taxes FAQ area. You might want to check it out.

[[ So I start filling out my 1040a and get to line 10b
(which refers, in this case, to the taxable portion
of the Roth conversion). The instructions say to
complete form 8606 to compute line 10b.]]

Right...and you can read more about Form 8606 in the Taxes FAQ area. Check it out. Plus, over the LAST 200 POSTS, we've discuss this issue in GREAT DETAIL. You might want to take some time and check out some of those posts.

[[ So I download form 8606.]]

That was your first mistake. You should have ALSO downloaded the INSTRUCTIONS.

[[ Line 1 asks for my 1998
non-deductible contributions to IRA's. The
instructions say to enter the smaller of line 6
or 7 from the IRA deduction worksheet found
in the 1040a instructions.

But line 3 of that worksheet requires that I know
what's on 1040a line 14, which in turn requires
that I know what's on line 10b -- the very information
I was attempting to find out.]]

First of all, throw away your 1040A and work with the real Form 1040. You'll be better off. When you read the instructions closely, you'll find that you are really NOT in a loop...especially if you understand the theory behind what you are trying to accomplish on the form.

[[ My questions:

* is this proper?
* is there another way?
* is there a cheaper way?]]

Again...go to the Taxes FAQ area and attempt to understand more about Form 8606. Then read some prior posts where this issue is discussed in greater. Then get the instructions for Form 8606.

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