crlackey wrote:

- quote -

There is no reason for you to be completing Part I of Form
8606 for pension distributions except in one instance. If
some part of your 401K derived from after-tax contributions
(you have a cost basis in your pension) and you rolled over
that cost basis into an IRA, then you have to use Line 2 to
establish the cost basis in your rollover IRA.

--
Alan
http://taxtopics.net

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"crlackey" <clackey3[at]rnc3.com> wrote:

- quote -

Before we go any further, what are you doing in Part I of
Form 8606? That section applies only if there have been
nondeductible contributions. If you never made after-tax
contributions to your 401(k)'s, Part I should be blank, and
Part II will show your conversion to Roth.

Assuming you got all the 1099-R's input correctly (and that
they were issued correctly), line 16(a) of the 1040 should
show the combined gross 401(k) distributions and 16(b)
should be zero. Line 15(b) should show the gross amount of
the IRA distribution that wound up in the Roth.

Phil Marti
Clarksburg, MD

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crlackey wrote:

- quote -

May I respectfully suggest that you (and other tax software
users) post such inquiries to the following applicable groups
(where you will receive much faster response than here):

http://groups.yahoo.com/group/TaxACTors/

http://groups.yahoo.com/group/hrbTaxCut/

http://groups.yahoo.com/group/TurboTax/

I believe you originally posted your question in the
TaxACTors group, and I attempted to answer it there. Would
you mind returning to that group to indicate whether my
answer missed your problem, or whatever.

MTW

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Scenario.

I have tow 401K's because of two employers across the years.
I have no IRA contributions because Ihave been unemployed
for over 2 years. Therefore 8606.line-5 is "0".

401K #1 was rolled to Fidelity, and was still a "regular
IRA" as of Dec 31, 2004. Value entered on 8606.line-6

401K #2 I took a disbursement, taxes were withheld, and I
took the check to my bank and rolled it into IRA ==> then
ROTH.

I have received my 1099R's and entered then into TaxAct 2004.

Form 8606.line-7, here is how I think it is supposed to be:

1099R (#2) should show up here in the full amount. When I
try to put in the number, it is an "override". Click on the
button "Open supporting form" takes me to the "1099R folder"
which shows all of my 1099's in it.

I expected that. The subject 1099 from 401K #2, should be
reflected on 8606 line seven. But NONE of my 1099's show up
there.

Overriding of course neuters my return for electronic
filing.

Can someone check Turbotax and/or TaxCut and see if it
behaves the same way?

Carl

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