Line 6 asks to "Enter the total value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2010, plus any outstanding rollovers."
I dont understand why they are asking for SEP, since all my SEP contributions are deductible? Also what is the point of line 6 if I am not taking any distribution from my IRA? I am in my mid 30's, so have long ways to go before I start withdrawing from it. So can I just ignore this line 6?
If you read the box after line 3 and find yourself at line 6 I have to assume you did a Roth conversion. The process for calculating the taxable portion of a conversion is the same as for a withdrawal. So no, you can't ignore line 6.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
I am filling out the form from 1040.com and do not see a line 3. I did not do any roth conversion. Just contribute 5k a year to a non- deductible traditional IRA.
In such a case you use only lines 1-3 and line 14 of Form 8606. Input to lines 1 & 2, line 3 is math, and copy line 3 to line 14.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
Have something to add? Share your thoughts — no account required.
Ask the community — no account required