Editorial Note on Part 1
Editorial Note: IRS redesignated the following sections to appear below the undesignated center heading “Regulations Applicable to Certain Bonds Sold Prior to July 8, 1997” and preceding the undesignated center heading “Deductions for Personal Exemptions.” See 62 FR 25507 and 25513, May 9, 1997 for the specific sections involved in the redesignation.

§ 1.408A-8 Definitions. This section sets forth the following question and answer that provides definitions of terms used in the provisions of §§ 1.408A-1 through 1.408A-7 and this section: Q-1 . Are there any special definitions that govern in applying the provisions of §§ 1.408A-1 through 1.408A-7 and this section?
A-1 . Yes, the following definitions govern in applying the provisions of §§ 1.408A-1 through 1.408A-7 and this section. Unless the context indicates otherwise, the use of a particular term excludes the use of the other terms. ( a ) *Different types of IRAs* — ( 1 ) *IRA.* Sections 408(a) and (b), respectively, describe an individual retirement account and an individual retirement annuity. The term IRA means an IRA described in either section 408(a) or (b), including each IRA described in paragraphs (a)(2) through (5) of this A-1. However, the term IRA does not include an education IRA described in section 530.
( 2 ) *Traditional IRA.* The term traditional IRA means an individual retirement account or individual retirement annuity described in section 408(a) or (b), respectively. This term includes a SEP IRA but does not include a SIMPLE IRA or a Roth IRA.
( 3 ) *SEP IRA.* Section 408(k) describes a simplified employee pension (SEP) as an employer-sponsored plan under which an employer can make contributions to IRAs established for its employees. The term SEP IRA means an IRA that receives contributions made under a SEP. The term SEP includes a salary reduction SEP (SARSEP) described in section 408(k)(6).
( 4 ) *SIMPLE IRA.* Section 408(p) describes a SIMPLE IRA Plan as an employer-sponsored plan under which an employer can make contributions to SIMPLE IRAs established for its employees. The term SIMPLE IRA means an IRA to which the only contributions that can be made are contributions under a SIMPLE IRA Plan or rollovers or transfers from another SIMPLE IRA.
( 5 ) *Roth IRA.* The term Roth IRA means an IRA that meets the requirements of section 408A.
( b ) *Other defined terms or phrases* — ( 1 ) *4-year spread.* The term 4-year spread is described in § 1.408A-4 A-8.
( 2 ) *Conversion.* The term conversion means a transaction satisfying the requirements of § 1.408A-4 A-1.
( 3 ) *Conversion amount or conversion contribution.* The term conversion amount or conversion contribution is the amount of a distribution and contribution with respect to which a conversion described in § 1.408A-4 A-1 is made.
( 4 ) *Failed conversion.* The term failed conversion means a transaction in which an individual contributes to a Roth IRA an amount transferred or distributed from a traditional IRA or Simple IRA (including a transfer by redesignation) in a transaction that does not constitute a conversion under § 1.408A-4 A-1.
( 5 ) *Modified AGI.* The term modified AGI is defined in § 1.408A-3 A-5.
( 6 ) *Recharacterization.* The term recharacterization means a transaction described in § 1.408A-5 A-1.
( 7 ) *Recharacterized amount or recharacterized contribution.* The term recharacterized amount or recharacterized contribution means an amount or contribution treated as contributed to an IRA other than the one to which it was originally contributed pursuant to a recharacterization described in § 1.408A-5 A-1.
( 8 ) *Taxable conversion amount.* The term taxable conversion amount means the portion of a conversion amount includible in income on account of a conversion, determined under the rules of section 408(d)(1) and (2).
( 9 ) *Tax-free transfer.* The term tax-free transfer means a tax-free rollover described in section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10) or 408(d)(3), or a tax-free trustee-to-trustee transfer.
( 10 ) *Treat an IRA as his or her own.* The phrase treat an IRA as his or her own means to treat an IRA for which a surviving spouse is the sole beneficiary as his or her own IRA after the death of the IRA owner in accordance with the terms of the IRA instrument or in the manner provided in the regulations under section 408(a)(6) or (b)(3).
( 11 ) *Trustee.* The term trustee includes a custodian or issuer (in the case of an annuity) of an IRA (except where the context clearly indicates otherwise).
[T.D. 8816, 64 FR 5610, Feb. 4, 1999]