____ Your contribution to an Individual Retirement Arrangement (IRA) was made anytime during the year up to the due date (without regard to any extension) for filing the tax return.
____ You did not make a contribution to your IRA that exceeds the amount you may contribute for the tax year. (Excess contributions are subject to a 6% excise tax).
____ You did not receive a payment from your IRA or another qualified retirement plan before you reached age 59 and 1/2 or became disabled. (Such payments are subject to a 10% additional tax for premature withdrawal).
____ You are able to establish that you are entitled to a deduction for your contributions to an IRA.
____ You made any rollover contribution to your IRA by the 60th day after the day you received the distribution.
____ You are able to verify the amount taken as a deduction as being paid to your IRA or Keogh plan.
____ You took qualified contributions to an IRA as an adjustment to income and did not deduct them on Schedule C or F.
____ Your deductions were for contributions made in time to a qualified Keogh plan.
____ Your deduction for contributions to an IRA were limited to the smaller of the following:
(1) the actual amount of the contribution;
(2) $2,000 ($2,250 if a contribution is made for a nonemployed spouse); or
(3) 100% of the compensation includible in your gross income. Compensation is defined as wages, salaries, professional fees and other amounts received for personal services actually rendered and taxable alimony. It does not include earnings from sources such as rents, interest and dividends.
____ If a distribution from your IRA was required under the minimum distribution rules, this distribution was not rolled over to another IRA.
____ If you (and/or your spouse, if married)is covered by a retirement plan, you limited your deduction for contributions to an IRA based on your adjusted gross income and filing status.
____ If a portion of your lump sum distribution was rolled over, you do not qualify for special tax treatment on that portion of the distribution you received. You did not use this special tax treatment in computing the tax on your lump sum distribution.
____ If you were age 50 or older on January 1, 1986 and your lump sum distribution was from a qualifying pension, profit sharing or stock bonus plan, you qualify for the special tax treatment (Capital gain treatment or 5 or 10 year tax option) on your lump sum distribution. You did not use this special tax treatment in computing tax on your distribution if you did not meet the qualifications.
____ If you were not age 50 or older on January 1, 1986 but you were age 59 and 1/2 on or after the date that your lump sum distribution was made this tax year, you are able to use the 5 year tax option to compute the tax on your distribution if the distribution otherwise qualifies. You did not use this special tax treatment if you did not meet the qualifications.
____ Your lump sum distribution qualifies for special tax treatment because one of the following applies:
(1) the distribution was paid to a beneficiary of an employee who has died,
(2) you quit, retired, were dismissed or fired from your job before receiving the distribution,
(3) you were self-employed or an owner-employee and became disabled or
(4) you were older than 59 and 1/2 at the time of the distribution. You did not use the special tax treatment if your distribution does not meet one of these requirements.
© 1986, 1998 to 2002, Jack Warren Wade, Jr.
