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Page 8 of 13 Fileid: … ions/i8606/2022/a/xml/cycle05/source 13:53 - 30-Mar-2023
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Line 7 2022, an $11,000 distribution, unrelated to a qualified disaster,
was made to you from your traditional IRA (that you did not roll
If you received a distribution in 2022 from a traditional, over). You will report total distributions of $33,000 on Form 8606,
! SEP, or SIMPLE IRA, and you also made contributions line 7. You will then complete lines 8 through 14 as instructed.
CAUTION for 2022 to a traditional IRA that may not be fully Form 8606, line 15a, shows an amount of $30,000. You will
deductible because of the income limits, you must make a enter $20,000 ($30,000 × $22,000/$33,000) on line 15b. You will
special computation before completing the rest of this form. For also enter $20,000 on 2022 Form 8915-F (2021 disasters),
details, including how to complete Form 8606, see Are line 18.
Distributions Taxable? in chapter 1 of Pub. 590-B.
Example 2. In September 2022, an $2,500 distribution,
Don’t include any of the following on line 7. unrelated to a qualified disaster, was made to you from your
• Distributions that you converted to a Roth IRA. traditional IRA (that you did not roll over). Your main home was
• Recharacterizations of traditional IRA contributions to Roth in California during the California Severe Winter Storms,
IRA contributions. Flooding, Landslides, and Mudslides (DR-4683-CA), which
• Distributions you rolled over to another traditional, SEP, or began December 27, 2022. You sustained an economic loss
SIMPLE IRA (whether or not the distribution is an outstanding because of that disaster. The end date for making distributions
rollover included on line 6). for this disaster is July 12, 2023. On December 29, 2022,
• Distributions you rolled over to a qualified retirement plan. qualified disaster distributions were made to you from your
• A one-time distribution to fund an HSA. For details, see Pub. traditional IRA in the amount of $7,500 that you reported on 2022
969, Health Savings Accounts and Other Tax-Favored Health Form 8915-F (2022 disasters). You will report total distributions
Plans. of $10,000 on Form 8606, line 7. You will then complete lines 8
• Distributions that are treated as a return of contributions under through 14 as instructed. Form 8606, line 15a, shows an amount
Return of IRA Contributions, earlier. of $8,000. You will enter $6,000 ($8,000 × $7,500/$10,000) on
• Qualified charitable distributions (QCDs). For details, see Are line 15b. You will also enter $6,000 on 2022 Form 8915-F (2022
Distributions Taxable? in chapter 1 of Pub. 590-B. disasters), line 18.
• Distributions that are treated as a return of excess
contributions under Return of Excess Traditional IRA Example 3. Your main home was in California during the
Contributions, earlier. California Wildfires (DR-4610-CA), which began July 14, 2021;
• Qualified distributions from Part IV of your 2022 Form(s) and the California Severe Winter Storms, Flooding, Landslides,
8915-F, if any, you repaid in 2022 no later than the deadline for and Mudslides (DR-4683-CA), which began December 27,
repayment. 2022. You sustained economic losses because of each of those
• Distributions that are incident to divorce. The transfer of part disasters. The end dates for making distributions for those
or all of your traditional, SEP, or SIMPLE IRA to your spouse disasters are June 26, 2023, and July 12, 2023, respectively. On
under a divorce or separation agreement isn’t taxable to you or August 5, 2022, and on December 29, 2022, qualified disaster
your spouse. If this transfer results in a change in the basis of the distributions were made to you from your traditional IRA in the
IRA of either spouse, both spouses must file Form 8606 and amount of $22,000 and $11,000 that you reported on 2022 Form
show the increase or decrease in the amount of basis on line 2. 8915-F (2021 disasters) and 2022 Form 8915-F (2022
Attach a statement explaining this adjustment. Include in the disasters), respectively. $22,000 was the maximum amount of
statement the character of the amounts in the IRA, such as the qualified disaster distributions that could be made for the 2021
amount attributable to nondeductible contributions. Also, include disaster. In between those distributions, in September 2022, a
the name and SSN of the other spouse. $5,500 distribution, unrelated to a qualified disaster, was made
to you from your traditional IRA (that you did not roll over). You
Qualified disaster distributions. Be sure to include on will report total distributions of $38,500 on Form 8606, line 7.
! line 7 all qualified disaster distributions made in 2022, You will then complete lines 8 through 14 as instructed. Form
CAUTION even if they were later repaid. 8606, line 15a, shows an amount of $35,000. You will enter
$30,000 ($35,000 × $33,000/$38,500) on line 15b. You will also
Line 8 enter $20,000 ($30,000 × $22,000/$33,000) on 2022 Form
8915-F (2021 disasters), line 18; and $10,000 ($30,000 ×
If, in 2022, you converted any amounts from traditional, SEP, or $11,000/$33,000) on 2022 Form 8915-F (2022 disasters),
SIMPLE IRAs to a Roth IRA, enter on line 8 the net amount you line 18.
converted.
Line 15c
Line 15b 1 2
If you were under age 59 / at the time you received distributions
If you have no qualified disaster distributions in 2022 from a from your traditional, SEP, or SIMPLE IRA, there is generally an
traditional, SEP, or SIMPLE IRA, enter -0- on line 15b. If all your additional 10% tax on the portion of the distribution that is
distributions in 2022 from those IRAs are qualified disaster included in income (25% for a distribution from a SIMPLE IRA
distributions, enter the amount from line 15a on line 15b. If you during the first 2 years of your participation in the plan). See the
have distributions in 2022 unrelated to qualified disasters, as instructions for Schedule 2 (Form 1040), line 8; and the
well as qualified disaster distributions, you will need to multiply Instructions for Form 5329.
the amount on line 15a by a fraction. The numerator of the
fraction is your total qualified disaster distributions, and the Part II—2022 Conversions From
denominator is the amount from Form 8606, line 7.
Example 1. Your main home was in Delaware during the Traditional, SEP, or SIMPLE IRAs to
Delaware Remnants of Hurricane Ida (DR-4627-DE), which Roth IRAs
began September 1, 2021. You sustained an economic loss
Complete Part II if you converted part or all of your traditional,
because of that disaster. The end date for making distributions
SEP, or SIMPLE IRAs to a Roth IRA in 2022.
for this disaster is June 26, 2023. In January 2022, a qualified
disaster distribution was made to you from your traditional IRA in
the amount of $22,000 that you reported on 2022 Form 8915-F
(2021 disasters). $22,000 was the maximum amount of qualified
disaster distributions that could be made for that disaster. In July
-8- Instructions for Form 8606 (2022)
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