Roth IRA distribution

[ljwalters]

If the Roth IRA distributon is over 5 years old and recipient is over 59 1/2 do I still need to use 8606?

Is any one else out there brain dead? I might as well give the business over to Buddy. This seems to have been a year of overwhelmingly complex tax issues?

Linda and buddy

[Margaret CPA in OH]

Yes, the instructions state, on page 7, to complete Part III to figure the taxable part, IF ANY (my emphasis), of your 2009 Roth IRA distributions. There is more but you have to put in the basis to prevent taxation on the distribution. I had 2 this year that would have brought up the 5329 except for the input of the basis on the 8606. Someone else may elaborate and/or correct me, but it works.

[Don in Upstate NY]

Yes, the instructions state, on page 7, to complete Part III to figure the taxable part, IF ANY (my emphasis), of your 2009 Roth IRA distributions. There is more but you have to put in the basis to prevent taxation on the distribution. I had 2 this year that would have brought up the 5329 except for the input of the basis on the 8606. Someone else may elaborate and/or correct me, but it works.

Not quite. Part III starts with line 19, where you enter the distribution. But you do not include any distribution that is made after you are 59-1/2 as long as you had made a contribution or conversion to a Roth in 2004 or before. This defines qualified distributions - you don't enter them. Then the instructions say that if there is nothing on line 19, you don't fill out the rest of Part III either, but just enter the gross distribution on the 1040 line 15a. So if you followed the instructions literally, you would file a blank 8606 for qualified Roth distributions.

[Margaret CPA in OH]

Thank you Don. I knew someone would would elaborate and/or correct me. And my folks this year fit the criteria to file so I confess I didn't commit to memory the entire instruction. To answer the poster I just quickly went to irs.gov and pulled up the instructions for 8606 but didn't read the entire thing. Back to my corner...

[ljwalters]

Thanks everyone. I just didn't understand the otherwise blank form. I guess I'll send it.

Linda and buddy