Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pmarti 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 123528  
Subject: Re: Roth IRA/ 1040 / 8606 questions Date: 3/6/2000 5:00 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< I've had a Roth IRA for 2 years. Last year I only converted from a traditional IRA and elected to spread the payments out over 4 years. For 1998 I only had to report 25% of this amount on my 1040. >>

I assume by "last year" you mean 1998, since the 4-year spread was only available for conversions done then. Your 1999 portion of that conversion income will go on line 15b of the 1040.

<< During 1999, I converted another traditional IRA into my Roth and made contributions to the Roth. No distributions at all. I've read over the Form 8606 instructions a couple of times but am not certain about where to enter the amount of my (non- rollover) contributions. >>

If you're talking about Roth IRA contributions, they aren't reported anywhere. (You should track them should the information someday be needed. There's a worksheet in the 8606 instructions for tracking.) BTW, the conversion from traditional IRA to Roth IS a distribution from the traditional, reported on line 15a, with the taxable portion included on 15b.

<< Can someone tell me? Also are there any good web sites that explain how to fill out the 8606 in plain English? For example, what is a 'basis'? >>

This is probably the best site you're going to find for explanations. If you're now asking for a definition of basis, I wonder how you did the 8606 for your 1998 conversion, since the definition hasn't changed. "Basis" in your traditional IRA is nondeductible contributions to it. Since you evidently had more than one traditional IRA account, remember that you lump them all together when completing Part I of the 8606, if you need to do Part I.

Phil Marti
Tax Preparer
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Simulations Plus

A Shorting Lesson Learned
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.