Department of the Treasury

Internal Revenue Service

Publication 590

Cat. No. 15160X

Individual

Retirement

Arrangements

(IRAs)

For use in preparing

2013 Returns

Get forms and other Information

faster and easier by

Internet at IRS.gov

Contents

What's New for 2013 ........................ 2

What's New for 2014 ........................ 2

Reminders ............................... 3

Introduction .............................. 3

Chapter 1. Traditional IRAs .................. 7

Who Can Open a Traditional IRA? ............ 7

When Can a Traditional IRA Be Opened? ....... 8

How Can a Traditional IRA Be Opened? ........ 8

How Much Can Be Contributed? ............ 10

When Can Contributions Be Made? .......... 11

How Much Can You Deduct? ............... 12

What if You Inherit an IRA? ................ 18

Can You Move Retirement Plan Assets? ...... 22

When Can You Withdraw or Use Assets? ...... 32

When Must You Withdraw Assets? (Required 

Minimum Distributions) ................. 34

Are Distributions Taxable? ................ 41

What Acts Result in Penalties or Additional 

Taxes? ............................ 51

Chapter 2. Roth IRAs ..................... 62

What Is a Roth IRA? ..................... 63

When Can a Roth IRA Be Opened? .......... 63

Can You Contribute to a Roth IRA? .......... 63

Can You Move Amounts Into a Roth IRA? ...... 68

Are Distributions Taxable? ................ 70

Must You Withdraw or Use Assets? .......... 75

Chapter 3. Savings Incentive Match Plans for 

Employees (SIMPLE) ................... 77

What Is a SIMPLE Plan? .................. 77

How Are Contributions Made? .............. 78

How Much Can Be Contributed on Your 

Behalf? ............................ 78

When Can You Withdraw or Use Assets? ...... 79

Chapter 4. Retirement Savings Contributions 

Credit (Saver's Credit) .................. 80

Chapter 5. How To Get Tax Help ............. 81

Appendices ............................. 85

Index ................................. 111

Note. After 2013, Publication 590 will be split into two 

separate publications as follows.

Publication 590-A, will focus on contributions to 

traditional IRAs as well as Roth IRAs. This publication 

will include the rules for rollover and conversion 

contributions.

Publication 590-B, will focus on distributions from 

traditional IRAs as well as Roth IRAs. This publication 

Jan 05, 2014
will include the rules for required minimum 

distributions and IRA beneficiaries.

What's New for 2013

Traditional IRA contribution and deduction limit. The 

contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts:

$5,500, or

Your taxable compensation for the year.

If you were age 50 or older before 2014, the most that 

can be contributed to your traditional IRA for 2013 will be 

the smaller of the following amounts:

$6,500, or

Your taxable compensation for the year.

For more information, see How Much Can Be Contributed? in chapter 1.

Roth IRA contribution limit. If contributions on your behalf are made only to Roth IRAs, your contribution limit for 

2013 will generally be the lesser of:

$5,500, or

Your taxable compensation for the year.

If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your 

contribution limit for 2013 will generally be the lesser of:

$6,500, or

Your taxable compensation for the year.

However, if your modified adjusted gross income (AGI) is 

above a certain amount, your contribution limit may be reduced.

For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in chapter 2.

Modified AGI limit for traditional IRA contributions increased. For 2013, if you were covered by a retirement 

plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying 

widow(er),

More than $59,000 but less than $69,000 for a single 

individual or head of household, or

Less than $10,000 for a married individual filing a separate return.

If you either lived with your spouse or file a joint return, 

and your spouse was covered by a retirement plan at 

work, but you were not, your deduction is phased out if 

your modified AGI is more than $178,000 but less than 

$188,000. If your modified AGI is $188,000 or more, you 

cannot take a deduction for contributions to a traditional 

IRA. See How Much Can You Deduct? in chapter 1.

Modified AGI limit for Roth IRA contributions increased. For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations.

Your filing status is married filing jointly or qualifying 

widow(er) and your modified AGI is at least $178,000. 

You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more.

Your filing status is single, head of household, or married filing separately and you did not live with your 

spouse at any time in 2013 and your modified AGI is 

at least $112,000. You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more.

Your filing status is married filing separately, you lived 

with your spouse at any time during the year, and your 

modified AGI is more than -0-. You cannot make a 

Roth IRA contribution if your modified AGI is $10,000 

or more.

See Can You Contribute to a Roth IRA? in chapter 2.

Net Investment Income Tax. For purposes of the Net 

Investment Income Tax (NIIT), net investment income 

does not include distributions from a qualified retirement 

plan (for example, 401(a), 403(a), 403(b), 457(b) plans, 

and IRAs). However, these distributions are taken into account when determining the modified adjusted gross income threshold. Distributions from a nonqualified retirement plan are included in net investment income. See 

Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information.

Kay Bailey Hutchison Spousal IRA. In 2013, spousal 

IRAs were renamed to Kay Bailey Hutchison Spousal 

IRAs. There are no changes to the rules regarding these 

IRAs. See Kay Bailey Hutchison Spousal IRA Limit in 

chapter 1 for more information.

What's New for 2014

Modified AGI limit for traditional IRA contributions increased. For 2014, if you are covered by a retirement 

plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying 

widow(er),

More than $60,000 but less than $70,000 for a single 

individual or head of household, or

Less than $10,000 for a married individual filing a separate return.

If you either live with your spouse or file a joint return, 

and your spouse is covered by a retirement plan at work, 

but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. If 

your modified AGI is $191,000 or more, you cannot take a 

deduction for contributions to a traditional IRA.

Page 2 Publication 590 (2013)
Modified AGI limit for Roth IRA contributions increased. For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations.

Your filing status is married filing jointly or qualifying 

widow(er) and your modified AGI is at least $181,000. 

You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more.

Your filing status is single, head of household, or married filing separately and you did not live with your 

spouse at any time in 2014 and your modified AGI is 

at least $114,000. You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more.

Your filing status is married filing separately, you lived 

with your spouse at any time during the year, and your 

modified AGI is more than -0-. You cannot make a 

Roth IRA contribution if your modified AGI is $10,000 

or more.

Reminders

Future developments. For the latest information about 

developments related to Publication 590, such as legislation enacted after it was published, go to www.irs.gov/

pub590.

Simplified employee pension (SEP). SEP IRAs are not 

covered in this publication. They are covered in Publication 560, Retirement Plans for Small Business.

Deemed IRAs. A qualified employer plan (retirement 

plan) can maintain a separate account or annuity under 

the plan (a deemed IRA) to receive voluntary employee 

contributions. If the separate account or annuity otherwise 

meets the requirements of an IRA, it will be subject only to 

IRA rules. An employee's account can be treated as a traditional IRA or a Roth IRA.

For this purpose, a “qualified employer plan” includes:

A qualified pension, profit-sharing, or stock bonus 

plan (section 401(a) plan),

A qualified employee annuity plan (section 403(a) 

plan),

A tax-sheltered annuity plan (section 403(b) plan), and

A deferred compensation plan (section 457 plan) 

maintained by a state, a political subdivision of a state, 

or an agency or instrumentality of a state or political 

subdivision of a state.

Contributions to both traditional and Roth IRAs. For 

information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs 

and traditional IRAs under How Much Can Be Contributed? in chapter 2.

Statement of required minimum distribution (RMD).

If an RMD is required from your IRA, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the RMD to you, 

or offer to calculate it for you. The report or offer must include the date by which the amount must be distributed. 

The report is due January 31 of the year in which the minimum distribution is required. It can be provided with the 

year-end fair market value statement that you normally get 

each year. No report is required for section 403(b) contracts (generally tax-sheltered annuities) or for IRAs of 

owners who have died.

IRA interest. Although interest earned from your IRA is 

generally not taxed in the year earned, it is not tax-exempt 

interest. Tax on your traditional IRA is generally deferred 

until you take a distribution. Do not report this interest on 

your return as tax-exempt interest. For more information 

on tax-exempt interest, see the instructions for your tax return.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for 

Missing and Exploited Children. Photographs of missing 

children selected by the Center may appear in this publication on pages that would otherwise be blank. You can 

help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if 

you recognize a child.

Introduction

This publication discusses individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives 

you tax advantages for setting aside money for retirement.

What are some tax advantages of an IRA? Two tax 

advantages of an IRA are that:

Contributions you make to an IRA may be fully or partially deductible, depending on which type of IRA you 

have and on your circumstances, and

Generally, amounts in your IRA (including earnings 

and gains) are not taxed until distributed. In some cases, amounts are not taxed at all if distributed according to the rules.

What's in this publication? This publication discusses 

traditional, Roth, and SIMPLE IRAs. It explains the rules 

for:

Setting up an IRA,

Contributing to an IRA,

Transferring money or property to and from an IRA,

Handling an inherited IRA,

Receiving distributions (making withdrawals) from an 

IRA, and

Taking a credit for contributions to an IRA.

It also explains the penalties and additional taxes that 

apply when the rules are not followed. To assist you in 

complying with the tax rules for IRAs, this publication contains worksheets, sample forms, and tables, which can be 

found throughout the publication and in the appendices at 

the back of the publication.

Publication 590 (2013) Page 3
How to use this publication. The rules that you must 

follow depend on which type of IRA you have. Use Table 

I-1 to help you determine which parts of this publication to 

read. Also use Table I-1 if you were referred to this publication from instructions to a form.

Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

You can write to us at the following address:

Internal Revenue Service

Tax Forms and Publications Division

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

We respond to many letters by telephone. Therefore, it 

would be helpful if you would include your daytime phone 

number, including the area code, in your correspondence.

You can send your comments from www.irs.gov/

formspubs/. Click on “More Information” and then on 

“Comment on Tax Forms and Publications”.

Although we cannot respond individually to each comment received, we do appreciate your feedback and will 

consider your comments as we revise our tax products.

Ordering forms and publications. Visit www.irs.gov/

formspubs/ to download forms and publications, call 

1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after 

your request is received.

Internal Revenue Service

1201 N. Mitsubishi Motorway

Bloomington, IL 61705-6613

Tax questions. If you have a tax question, check the 

information available on IRS.gov or call 1-800-829-1040. 

We cannot answer tax questions sent to either of the 

above addresses.

Useful Items

You may want to see:

Publications

Retirement Plans for Small Business (SEP, 

SIMPLE, and Qualified Plans)

 560

Tax-Sheltered Annuity Plans (403(b) Plans)

Pension and Annuity Income

General Rule for Pensions and Annuities

Forms (and instructions)

Withholding Certificate for Pension or Annuity 

Payments

Distributions From Pensions, Annuities, 

Retirement or Profit-Sharing Plans, IRAs, 

Insurance Contracts, etc.

Savings Incentive Match Plan for 

Employees of Small Employers (SIMPLE)–Not 

for Use With a Designated Financial Institution

SIMPLE Individual Retirement Trust Account

SIMPLE Individual Retirement Custodial 

Account

Savings Incentive Match Plan for 

Employees of Small Employers (SIMPLE)–for 

Use With a Designated Financial Institution

Additional Taxes on Qualified Plans (Including 

IRAs) and Other Tax-Favored Accounts

IRA Contribution Information

Nondeductible IRAs

Exclusion of Interest From Series EE and I 

U.S. Savings Bonds Issued After 1989

Qualified Adoption Expenses

Credit for Qualified Retirement Savings 

Contributions

See chapter 5 for information about getting these publications and forms.

 571

 575

 939

 W­4P

 1099­R

 5304­SIMPLE

 5305­S

 5305­SA

 5305­SIMPLE

 5329

 5498

 8606

 8815

 8839

 8880

Page 4 Publication 590 (2013)
Table I­1. Using This Publication

IF you need

information on ...

THEN see ...

traditional IRAs chapter 1.

Roth IRAs chapter 2, and parts of 

chapter 1.

SIMPLE IRAs chapter 3.

the credit for qualified retirement savings contributions 

(the saver's credit)

chapter 4.

how to keep a record of your contributions to, and 

distributions from, your traditional IRA(s) 

appendix A.

SEP IRAs and 401(k) plans  Publication 560.

Coverdell education savings accounts (formerly called 

education IRAs)

 Publication 970.

IF for 2013, you 

received social security benefits,

had taxable compensation,

contributed to a traditional IRA, and

you or your spouse was covered by an employer 

retirement plan,

 and you want to...

THEN see ...

first figure your modified adjusted gross income (AGI) appendix B, worksheet 1.

then figure how much of your traditional IRA contribution 

you can deduct

appendix B, worksheet 2.

and finally figure how much of your social security is 

taxable 

appendix B, worksheet 3.

Publication 590 (2013) Page 5
Table I-2. How Are a Traditional IRA and a Roth IRA Different?

This table shows the differences between traditional and Roth IRAs. Answers in the middle column apply to traditional 

IRAs. Answers in the right column apply to Roth IRAs.

Question Answer

Traditional IRA? Roth IRA?

Is there an age limit on when I can open 

and contribute to a ................

Yes. You must not have reached age 

701

2 by the end of the year. See Who 

Can Open a Traditional IRA? in 

chapter 1.

No. You can be any age. See Can You 

Contribute to a Roth IRA? in chapter 2.

If I earned more than $5,500 in 2013 

($6,500 if I was 50 or older by the end of 

2013), is there a limit on how much I can 

contribute to a ....................

Yes. For 2013, you can contribute to a 

traditional IRA up to: 

$5,500, or

$6,500 if you were age 50 or older 

by the end of 2013.

There is no upper limit on how much 

you can earn and still contribute. See 

How Much Can Be Contributed? in 

chapter 1. 

Yes. For 2013, you may be able to 

contribute to a Roth IRA up to: 

$5,500, or

$6,500 if you were age 50 or older 

by the end of 2013,

but the amount you can contribute may 

be less than that depending on your 

income, filing status, and if you 

contribute to another IRA. See How 

Much Can Be Contributed? and Table 

2-1 in chapter 2.

Can I deduct contributions to a .......

Yes. You may be able to deduct your 

contributions to a traditional IRA 

depending on your income, filing 

status, whether you are covered by a 

retirement plan at work, and whether 

you receive social security benefits. 

See How Much Can You Deduct? in 

chapter 1.

No. You can never deduct contributions 

to a Roth IRA. See What Is a Roth IRA?

in chapter 2.

Do I have to file a form just because I 

contribute to a ....................

Not unless you make nondeductible 

contributions to your traditional IRA. In 

that case, you must file Form 8606. See 

Nondeductible Contributions in 

chapter 1.

No. You do not have to file a form if you 

contribute to a Roth IRA. See 

Contributions not reported in chapter 2.

Do I have to start taking distributions 

when I reach a certain age from a .....

Yes. You must begin receiving required 

minimum distributions by April 1 of the 

year following the year you reach age 

701

2. See When Must You Withdraw 

Assets? (Required Minimum 

Distributions) in chapter 1. 

No. If you are the original owner of a 

Roth IRA, you do not have to take 

distributions regardless of your age. 

See Are Distributions Taxable? in 

chapter 2. However, if you are the 

beneficiary of a Roth IRA, you may 

have to take distributions. See 

Distributions After Owner's Death in 

chapter 2.

How are distributions taxed from a .....

Distributions from a traditional IRA are 

taxed as ordinary income, but if you 

made nondeductible contributions, not 

all of the distribution is taxable. See Are 

Distributions Taxable? in chapter 1.

Distributions from a Roth IRA are not 

taxed as long as you meet certain 

criteria. See Are Distributions Taxable?

in chapter 2. 

Do I have to file a form just because I 

receive distributions from a ..........

Not unless you have ever made a 

nondeductible contribution to a 

traditional IRA. If you have, file Form 

8606. See Nondeductible Contributions

in chapter 1.

Yes. File Form 8606 if you received 

distributions from a Roth IRA (other 

than a rollover, qualified charitable 

distribution, one-time distribution to 

fund an HSA, recharacterization, 

certain qualified distributions, or a 

return of certain contributions).

Page 6 Publication 590 (2013)
1.

Traditional IRAs

What's New for 2013

Traditional IRA contribution and deduction limit. The 

contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts:

$5,500, or

Your taxable compensation for the year.

If you were age 50 or older before 2014, the most that 

can be contributed to your traditional IRA for 2013 will be 

the smaller of the following amounts:

$6,500, or

Your taxable compensation for the year.

For more information, see How Much Can Be Contributed? in this chapter.

Modified AGI limit for traditional IRA contributions increased. For 2013, if you were covered by a retirement 

plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying 

widow(er),

More than $59,000 but less than $69,000 for a single 

individual or head of household, or

Less than $10,000 for a married individual filing a separate return.

If you either lived with your spouse or file a joint return, 

and your spouse was covered by a retirement plan at 

work, but you were not, your deduction is phased out if 

your modified AGI is more than $178,000 but less than 

$188,000. If your modified AGI is $188,000 or more, you 

cannot take a deduction for contributions to a traditional 

IRA. See How Much Can You Deduct? in this chapter.

Net Investment Income Tax. For purposes of the Net 

Investment Income Tax (NIIT), net investment income 

does not include distributions from a qualified retirement 

plan (for example, 401(a), 403(a), 403(b), 457(b) plans, 

and IRAs). However, these distributions are taken into account when determining the modified adjusted gross income threshold. Distributions from a nonqualified retirement plan are included in net investment income. See 

Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information.

What's New for 2014

Modified AGI limit for traditional IRA contributions increased. For 2014, if you are covered by a retirement 

plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying 

widow(er),

More than $60,000 but less than $70,000 for a single 

individual or head of household, or

Less than $10,000 for a married individual filing a separate return.

If you either live with your spouse or file a joint return, 

and your spouse is covered by a retirement plan at work, 

but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. If 

your modified AGI is $191,000 or more, you cannot take a 

deduction for contributions to a traditional IRA.

Introduction

This chapter discusses the original IRA. In this publication 

the original IRA (sometimes called an ordinary or regular 

IRA) is referred to as a “traditional IRA.” A traditional IRA 

is any IRA that is not a Roth IRA or a SIMPLE IRA. The 

following are two advantages of a traditional IRA:

You may be able to deduct some or all of your contributions to it, depending on your circumstances.

Generally, amounts in your IRA, including earnings 

and gains, are not taxed until they are distributed.

Who Can Open

a Traditional IRA?

You can open and make contributions to a traditional IRA 

if:

You (or, if you file a joint return, your spouse) received 

taxable compensation during the year, and

You were not age 701

2 by the end of the year.

You can have a traditional IRA whether or not you are 

covered by any other retirement plan. However, you may 

not be able to deduct all of your contributions if you or 

your spouse is covered by an employer retirement plan. 

See How Much Can You Deduct, later.

Both spouses have compensation. If both you and 

your spouse have compensation and are under age 701

2, 

each of you can open an IRA. You cannot both participate 

in the same IRA. If you file a joint return, only one of you 

needs to have compensation.

Chapter 1 Traditional IRAs Page 7
What Is Compensation?

Generally, compensation is what you earn from working. 

For a summary of what compensation does and does not 

include, see Table 1-1. Compensation includes all of the 

items discussed next (even if you have more than one 

type).

Wages, salaries, etc. Wages, salaries, tips, professional 

fees, bonuses, and other amounts you receive for providing personal services are compensation. The IRS treats 

as compensation any amount properly shown in box 1 

(Wages, tips, other compensation) of Form W-2, Wage 

and Tax Statement, provided that amount is reduced by 

any amount properly shown in box 11 (Nonqualified 

plans). Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form 

W-2.

Commissions. An amount you receive that is a percentage of profits or sales price is compensation.

Self­employment income. If you are self-employed (a 

sole proprietor or a partner), compensation is the net 

earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:

The deduction for contributions made on your behalf 

to retirement plans, and

The deduction allowed for the deductible part of your 

self-employment taxes.

Compensation includes earnings from self-employment 

even if they are not subject to self-employment tax because of your religious beliefs.

Self-employment loss. If you have a net loss from 

self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation.

Alimony and separate maintenance. For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree 

of divorce or separate maintenance.

Nontaxable combat pay. If you were a member of the 

U.S. Armed Forces, compensation includes any nontaxable combat pay you received. This amount should be reported in box 12 of your 2013 Form W-2 with code Q.

Compensation for Purposes

of an IRA

Includes ... Does not include ...

 earnings and profits from

 property.

wages, salaries, etc.

 interest and

 dividend income.

commissions.

 pension or annuity

 income.

self-employment income.

 deferred compensation.

alimony and separate maintenance.

 income from certain 

 partnerships.

nontaxable combat pay.

 any amounts you exclude

 from income.

What Is Not Compensation?

Compensation does not include any of the following 

items.

Earnings and profits from property, such as rental income, interest income, and dividend income.

Pension or annuity income.

Deferred compensation received (compensation payments postponed from a past year).

Income from a partnership for which you do not provide services that are a material income-producing 

factor.

Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b.

Any amounts (other than combat pay) you exclude 

from income, such as foreign earned income and 

housing costs.

When Can a Traditional IRA

Be Opened?

You can open a traditional IRA at any time. However, the 

time for making contributions for any year is limited. See 

When Can Contributions Be Made, later.

How Can a Traditional IRA

Be Opened?

You can open different kinds of IRAs with a variety of organizations. You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance 

Table 1-1. 

Page 8 Chapter 1 Traditional IRAs
company. You can also open an IRA through your stockbroker. Any IRA must meet Internal Revenue Code requirements. The requirements for the various 

arrangements are discussed below.

Kinds of traditional IRAs. Your traditional IRA can be 

an individual retirement account or annuity. It can be part 

of either a simplified employee pension (SEP) or an employer or employee association trust account.

Individual Retirement Account

An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit 

of you or your beneficiaries. The account is created by a 

written document. The document must show that the account meets all of the following requirements.

The trustee or custodian must be a bank, a federally 

insured credit union, a savings and loan association, 

or an entity approved by the IRS to act as trustee or 

custodian.

The trustee or custodian generally cannot accept contributions of more than the deductible amount for the 

year. However, rollover contributions and employer 

contributions to a simplified employee pension (SEP) 

can be more than this amount.

Contributions, except for rollover contributions, must 

be in cash. See Rollovers, later.

You must have a nonforfeitable right to the amount at 

all times.

Money in your account cannot be used to buy a life insurance policy.

Assets in your account cannot be combined with other 

property, except in a common trust fund or common 

investment fund.

You must start receiving distributions by April 1 of the 

year following the year in which you reach age 701

2. 

See When Must You Withdraw Assets? (Required 

Minimum Distributions), later.

Individual Retirement Annuity

You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a 

life insurance company.

An individual retirement annuity must be issued in your 

name as the owner, and either you or your beneficiaries 

who survive you are the only ones who can receive the 

benefits or payments.

An individual retirement annuity must meet all the following requirements.

Your entire interest in the contract must be nonforfeitable.

The contract must provide that you cannot transfer 

any portion of it to any person other than the issuer.

There must be flexible premiums so that if your compensation changes, your payment can also change. 

This provision applies to contracts issued after November 6, 1978.

The contract must provide that contributions cannot 

be more than the deductible amount for an IRA for the 

year, and that you must use any refunded premiums 

to pay for future premiums or to buy more benefits before the end of the calendar year after the year in 

which you receive the refund.

Distributions must begin by April 1 of the year following the year in which you reach age 701

2. See When 

Must You Withdraw Assets? (Required Minimum Distributions), later. 

Individual Retirement Bonds

The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. The 

bonds have the following features.

They stop earning interest when you reach age 701

2. If 

you die, interest will stop 5 years after your death, or 

on the date you would have reached age 701

2, whichever is earlier.

You cannot transfer the bonds.

If you cash (redeem) the bonds before the year in which 

you reach age 591

2, you may be subject to a 10% additional tax. See Age 591

2 Rule under Early Distributions, 

later. You can roll over redemption proceeds into IRAs.

Simplified Employee Pension (SEP)

A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to 

receive such contributions. Generally, distributions from 

SEP IRAs are subject to the withdrawal and tax rules that 

apply to traditional IRAs. See Publication 560 for more information about SEPs.

Employer and Employee

Association Trust Accounts

Your employer or your labor union or other employee association can set up a trust to provide individual retirement 

accounts for employees or members. The requirements 

for individual retirement accounts apply to these traditional IRAs.

Required Disclosures

The trustee or issuer (sometimes called the sponsor) of 

your traditional IRA generally must give you a disclosure 

statement at least 7 days before you open your IRA. However, the sponsor does not have to give you the statement 

until the date you open (or purchase, if earlier) your IRA, 

provided you are given at least 7 days from that date to revoke the IRA.

Chapter 1 Traditional IRAs Page 9
The disclosure statement must explain certain items in 

plain language. For example, the statement should explain when and how you can revoke the IRA, and include 

the name, address, and telephone number of the person 

to receive the notice of cancellation. This explanation 

must appear at the beginning of the disclosure statement. 

If you revoke your IRA within the revocation period, the 

sponsor must return to you the entire amount you paid. 

The sponsor must report on the appropriate IRS forms 

both your contribution to the IRA (unless it was made by a 

trustee-to-trustee transfer) and the amount returned to 

you. These requirements apply to all sponsors.

How Much Can Be 

Contributed?

There are limits and other rules that affect the amount that 

can be contributed to a traditional IRA. These limits and 

rules are explained below.

Community property laws. Except as discussed later 

under Kay Bailey Hutchison Spousal IRA Limit, each 

spouse figures his or her limit separately, using his or her 

own compensation. This is the rule even in states with 

community property laws.

Brokers' commissions. Brokers' commissions paid in 

connection with your traditional IRA are subject to the contribution limit. For information about whether you can deduct brokers' commissions, see Brokers' commissions, 

later, under How Much Can You Deduct.

Trustees' fees. Trustees' administrative fees are not 

subject to the contribution limit. For information about 

whether you can deduct trustees' fees, see Trustees' fees, 

later, under How Much Can You Deduct.

Qualified reservist repayments. If you were a member 

of a reserve component and you were ordered or called to 

active duty after September 11, 2001, you may be able to 

contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. You can make these repayment 

contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. To be eligible to make these repayment contributions, you must have received a qualified reservist 

distribution from an IRA or from a section 401(k) or 403(b) 

plan or a similar arrangement.

Limit. Your qualified reservist repayments cannot be 

more than your qualified reservist distributions, explained 

under Early Distributions, later.

When repayment contributions can be made. You 

cannot make these repayment contributions later than the 

date that is 2 years after your active duty period ends.

No deduction. You cannot deduct qualified reservist 

repayments.

Reserve component. The term “reserve component” 

means the:

Army National Guard of the United States,

Army Reserve,

Naval Reserve,

Marine Corps Reserve,

Air National Guard of the United States,

Air Force Reserve,

Coast Guard Reserve, or

Reserve Corps of the Public Health Service.

Figuring your IRA deduction. The repayment of 

qualified reservist distributions does not affect the amount 

you can deduct as an IRA contribution.

Reporting the repayment. If you repay a qualified reservist distribution, include the amount of the repayment 

with nondeductible contributions on line 1 of Form 8606.

Example. In 2013, your IRA contribution limit is 

$5,500. However, because of your filing status and AGI, 

the limit on the amount you can deduct is $3,500. You can 

make a nondeductible contribution of $2,000 ($5,500 - 

$3,500). In an earlier year you received a $3,000 qualified 

reservist distribution, which you would like to repay this 

year.

For 2013, you can contribute a total of $8,500 to your 

IRA. This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; 

and a $3,000 qualified reservist repayment. You contribute the maximum allowable for the year. Since you are 

making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 

8606 with your return and include $5,000 ($2,000 + 

$3,000) on line 1 of Form 8606. The qualified reservist repayment is not deductible.

Contributions on your behalf to a traditional IRA 

reduce your limit for contributions to a Roth IRA. 

See chapter 2 for information about Roth IRAs.

General Limit

For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following 

amounts:

$5,500 ($6,500 if you are age 50 or older), or

Your taxable compensation (defined earlier) for the 

year.

Note. This limit is reduced by any contributions to a 

section 501(c)(18) plan (generally, a pension plan created 

before June 25, 1959, that is funded entirely by employee 

contributions).

This is the most that can be contributed regardless of 

whether the contributions are to one or more traditional 

CAUTION

!

Page 10 Chapter 1 Traditional IRAs
IRAs or whether all or part of the contributions are nondeductible. (See Nondeductible Contributions, later.) Qualified reservist repayments do not affect this limit.

Examples. George, who is 34 years old and single, 

earns $24,000 in 2013. His IRA contributions for 2013 are 

limited to $5,500.

Danny, an unmarried college student working part time, 

earns $3,500 in 2013. His IRA contributions for 2013 are 

limited to $3,500, the amount of his compensation.

More than one IRA. If you have more than one IRA, the 

limit applies to the total contributions made on your behalf 

to all your traditional IRAs for the year.

Annuity or endowment contracts. If you invest in an 

annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 

50 or older) can be contributed toward its cost for the tax 

year, including the cost of life insurance coverage. If more 

than this amount is contributed, the annuity or endowment 

contract is disqualified.

Kay Bailey Hutchison Spousal IRA 

Limit

For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that 

can be contributed for the year to your IRA is the smaller 

of the following two amounts:

1. $5,500 ($6,500 if you are age 50 or older), or

2. The total compensation includible in the gross income 

of both you and your spouse for the year, reduced by 

the following two amounts.

a. Your spouse's IRA contribution for the year to a 

traditional IRA.

b. Any contributions for the year to a Roth IRA on behalf of your spouse.

This means that the total combined contributions that 

can be made for the year to your IRA and your spouse's 

IRA can be as much as $11,000 ($12,000 if only one of 

you is age 50 or older or $13,000 if both of you are age 50 

or older).

Note. This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions).

Example. Kristin, a full-time student with no taxable 

compensation, marries Carl during the year. Neither of 

them was age 50 by the end of 2013. For the year, Carl 

has taxable compensation of $30,000. He plans to contribute (and deduct) $5,500 to a traditional IRA. If he and 

Kristin file a joint return, each can contribute $5,500 to a 

traditional IRA. This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the 

amount of his IRA contribution ($30,000 − $5,500 = 

$24,500), to her own compensation (-0-) to figure her 

maximum contribution to a traditional IRA. In her case, 

$5,500 is her contribution limit, because $5,500 is less 

than $24,500 (her compensation for purposes of figuring 

her contribution limit).

Filing Status

Generally, except as discussed earlier under Kay Bailey 

Hutchison Spousal IRA Limit, your filing status has no effect on the amount of allowable contributions to your traditional IRA. However, if during the year either you or your 

spouse was covered by a retirement plan at work, your 

deduction may be reduced or eliminated, depending on 

your filing status and income. See How Much Can You 

Deduct, later.

Example. Tom and Darcy are married and both are 

53. They both work and each has a traditional IRA. Tom 

earned $3,800 and Darcy earned $48,000 in 2013. Because of the Kay Bailey Hutchison Spousal IRA limit rule, 

even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint 

return. They can contribute up to $6,500 to Darcy's IRA. If 

they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800.

Less Than Maximum Contributions

If contributions to your traditional IRA for a year were less 

than the limit, you cannot contribute more after the due 

date of your return for that year to make up the difference.

Example. Rafael, who is 40, earns $30,000 in 2013. 

Although he can contribute up to $5,500 for 2013, he contributes only $3,000. After April 15, 2014, Rafael cannot 

make up the difference between his actual contributions 

for 2013 ($3,000) and his 2013 limit ($5,500). He cannot 

contribute $2,500 more than the limit for any later year.

More Than Maximum Contributions

If contributions to your IRA for a year were more than the 

limit, you can apply the excess contribution in one year to 

a later year if the contributions for that later year are less 

than the maximum allowed for that year. However, a penalty or additional tax may apply. See Excess Contributions, later, under What Acts Result in Penalties or Additional Taxes.

When Can Contributions

Be Made?

As soon as you open your traditional IRA, contributions 

can be made to it through your chosen sponsor (trustee or 

other administrator). Contributions must be in the form of 

money (cash, check, or money order). Property cannot be 

contributed.

Chapter 1 Traditional IRAs Page 11
Although property cannot be contributed, your IRA may 

invest in certain property. For example, your IRA may purchase shares of stock. For other restrictions on the use of 

funds in your IRA, see Prohibited Transactions, later in 

this chapter. You may be able to transfer or roll over certain property from one retirement plan to another. See the 

discussion of rollovers and other transfers later in this 

chapter under Can You Move Retirement Plan Assets.

You can make a contribution to your IRA by having your income tax refund (or a portion of your 

refund), if any, paid directly to your traditional 

IRA, Roth IRA, or SEP IRA. For details, see the instructions for your income tax return or Form 8888, Allocation 

of Refund (Including Savings Bond Purchases).

Contributions can be made to your traditional IRA for 

each year that you receive compensation and have not 

reached age 701

2. For any year in which you do not work, 

contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential 

pay, or file a joint return with a spouse who has compensation. See Who Can Open a Traditional IRA, earlier. 

Even if contributions cannot be made for the current year, 

the amounts contributed for years in which you did qualify 

can remain in your IRA. Contributions can resume for any 

years that you qualify.

Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any 

time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2013 must be made 

by April 15, 2014, and contributions for 2014 must be 

made by April 15, 2015.

Age 701

2 rule. Contributions cannot be made to your traditional IRA for the year in which you reach age 701

2 or for 

any later year.

You attain age 701

2 on the date that is 6 calendar 

months after the 70th anniversary of your birth. If you were 

born on or before June 30, 1943, you cannot contribute for 

2013 or any later year.

Designating year for which contribution is made. If 

an amount is contributed to your traditional IRA between 

January 1 and April 15, you should tell the sponsor which 

year (the current year or the previous year) the contribution is for. If you do not tell the sponsor which year it is for, 

the sponsor can assume, and report to the IRS, that the 

contribution is for the current year (the year the sponsor 

received it).

Filing before a contribution is made. You can file your 

return claiming a traditional IRA contribution before the 

contribution is actually made. Generally, the contribution 

must be made by the due date of your return, not including 

extensions.

Contributions not required. You do not have to contribute to your traditional IRA for every tax year, even if you 

can.

TIP

How Much Can You Deduct?

Generally, you can deduct the lesser of:

The contributions to your traditional IRA for the year, 

or

The general limit (or the Kay Bailey Hutchison 

Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed.

However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this 

amount. See Limit if Covered by Employer Plan, later.

You may be able to claim a credit for contributions to your traditional IRA. For more information, see chapter 4.

Trustees' fees. Trustees' administrative fees that are billed separately and paid in connection with your traditional 

IRA are not deductible as IRA contributions. However, 

they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). For information 

about miscellaneous itemized deductions, see Publication 

529, Miscellaneous Deductions.

Brokers' commissions. These commissions are part of 

your IRA contribution and, as such, are deductible subject 

to the limits.

Full deduction. If neither you nor your spouse was covered for any part of the year by an employer retirement 

plan, you can take a deduction for total contributions to 

one or more of your traditional IRAs of up to the lesser of:

$5,500 ($6,500 if you are age 50 or older), or

100% of your compensation.

This limit is reduced by any contributions made to a 

501(c)(18) plan on your behalf.

Kay Bailey Hutchison Spousal IRA. In the case of a 

married couple with unequal compensation who file a joint 

return, the deduction for contributions to the traditional 

IRA of the spouse with less compensation is limited to the 

lesser of:

1. $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or

2. The total compensation includible in the gross income 

of both spouses for the year reduced by the following 

three amounts.

a. The IRA deduction for the year of the spouse with 

the greater compensation.

b. Any designated nondeductible contribution for the 

year made on behalf of the spouse with the 

greater compensation.

c. Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation.

TIP

Page 12 Chapter 1 Traditional IRAs
This limit is reduced by any contributions to a section 

501(c)(18) plan on behalf of the spouse with the lesser 

compensation.

Note. If you were divorced or legally separated (and 

did not remarry) before the end of the year, you cannot 

deduct any contributions to your spouse's IRA. After a divorce or legal separation, you can deduct only the contributions to your own IRA. Your deductions are subject to 

the rules for single individuals.

Covered by an employer retirement plan. If you or 

your spouse was covered by an employer retirement plan 

at any time during the year for which contributions were 

made, your deduction may be further limited. This is discussed later under Limit if Covered by Employer Plan. 

Limits on the amount you can deduct do not affect the 

amount that can be contributed.

Are You Covered

by an Employer Plan?

The Form W-2 you receive from your employer has a box 

used to indicate whether you were covered for the year. 

The “Retirement Plan” box should be checked if you were 

covered.

Reservists and volunteer firefighters should also see 

Situations in Which You Are Not Covered, later.

If you are not certain whether you were covered by your 

employer's retirement plan, you should ask your employer.

Federal judges. For purposes of the IRA deduction, federal judges are covered by an employer plan.

For Which Year(s) Are You Covered?

Special rules apply to determine the tax years for which 

you are covered by an employer plan. These rules differ 

depending on whether the plan is a defined contribution 

plan or a defined benefit plan.

Tax year. Your tax year is the annual accounting period 

you use to keep records and report income and expenses 

on your income tax return. For almost all people, the tax 

year is the calendar year.

Defined contribution plan. Generally, you are covered 

by a defined contribution plan for a tax year if amounts are 

contributed or allocated to your account for the plan year 

that ends with or within that tax year. However, also see 

Situations in Which You Are Not Covered, later.

A defined contribution plan is a plan that provides for a 

separate account for each person covered by the plan. In 

a defined contribution plan, the amount to be contributed 

to each participant's account is spelled out in the plan. 

The level of benefits actually provided to a participant depends on the total amount contributed to that participant's 

account and any earnings and losses on those contributions. Types of defined contribution plans include 

profit-sharing plans, stock bonus plans, and money 

purchase pension plans.

Example. Company A has a money purchase pension 

plan. Its plan year is from July 1 to June 30. The plan provides that contributions must be allocated as of June 30. 

Bob, an employee, leaves Company A on December 31, 

2012. The contribution for the plan year ending on June 

30, 2013, is made February 15, 2014. Because an amount 

is contributed to Bob's account for the plan year, Bob is 

covered by the plan for his 2013 tax year.

A special rule applies to certain plans in which it is not 

possible to determine if an amount will be contributed to 

your account for a given plan year. If, for a plan year, no 

amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and 

contributions are discretionary for the plan year, you are 

not covered for the tax year in which the plan year ends. If, 

after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in 

which the contribution is made.

Example. Mickey was covered by a profit-sharing plan 

and left the company on December 31, 2012. The plan 

year runs from July 1 to June 30. Under the terms of the 

plan, employer contributions do not have to be made, but 

if they are made, they are contributed to the plan before 

the due date for filing the company's tax return. Such contributions are allocated as of the last day of the plan year, 

and allocations are made to the accounts of individuals 

who have any service during the plan year. As of June 30, 

2013, no contributions were made that were allocated to 

the June 30, 2013, plan year, and no forfeitures had been 

allocated within the plan year. In addition, as of that date, 

the company was not obligated to make a contribution for 

such plan year and it was impossible to determine 

whether or not a contribution would be made for the plan 

year. On December 31, 2013, the company decided to 

contribute to the plan for the plan year ending June 30, 

2013. That contribution was made on February 15, 2014. 

Mickey is an active participant in the plan for his 2014 tax 

year but not for his 2013 tax year.

No vested interest. If an amount is allocated to your 

account for a plan year, you are covered by that plan even 

if you have no vested interest in (legal right to) the account.

Defined benefit plan. If you are eligible to participate in 

your employer's defined benefit plan for the plan year that 

ends within your tax year, you are covered by the plan. 

This rule applies even if you:

Declined to participate in the plan,

Did not make a required contribution, or

Did not perform the minimum service required to accrue a benefit for the year.

A defined benefit plan is any plan that is not a defined 

contribution plan. In a defined benefit plan, the level of 

benefits to be provided to each participant is spelled out in 

Chapter 1 Traditional IRAs Page 13
the plan. The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Defined benefit plans include pension 

plans and annuity plans.

Example. Nick, an employee of Company B, is eligible 

to participate in Company B's defined benefit plan, which 

has a July 1 to June 30 plan year. Nick leaves Company B 

on December 31, 2012. Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is 

covered by the plan for his 2013 tax year.

No vested interest. If you accrue a benefit for a plan 

year, you are covered by that plan even if you have no 

vested interest in (legal right to) the accrual.

Situations in Which You Are Not Covered

Unless you are covered by another employer plan, you 

are not covered by an employer plan if you are in one of 

the situations described below.

Social security or railroad retirement. Coverage under 

social security or railroad retirement is not coverage under 

an employer retirement plan.

Benefits from previous employer's plan. If you receive 

retirement benefits from a previous employer's plan, you 

are not covered by that plan.

Reservists. If the only reason you participate in a plan is 

because you are a member of a reserve unit of the Armed 

Forces, you may not be covered by the plan. You are not 

covered by the plan if both of the following conditions are 

met.

1. The plan you participate in is established for its employees by:

a. The United States,

b. A state or political subdivision of a state, or

c. An instrumentality of either (a) or (b) above.

2. You did not serve more than 90 days on active duty 

during the year (not counting duty for training).

Volunteer firefighters. If the only reason you participate 

in a plan is because you are a volunteer firefighter, you 

may not be covered by the plan. You are not covered by 

the plan if both of the following conditions are met.

1. The plan you participate in is established for its employees by:

a. The United States,

b. A state or political subdivision of a state, or

c. An instrumentality of either (a) or (b) above.

2. Your accrued retirement benefits at the beginning of 

the year will not provide more than $1,800 per year at 

retirement.

Limit if Covered by Employer Plan

As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on 

whether you or your spouse was covered for any part of 

the year by an employer retirement plan. Your deduction 

is also affected by how much income you had and by your 

filing status. Your deduction may also be affected by social security benefits you received.

Reduced or no deduction. If either you or your spouse 

was covered by an employer retirement plan, you may be 

entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status.

Your deduction begins to decrease (phase out) when 

your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. These 

amounts vary depending on your filing status.

To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under 

Deduction Phaseout. Once you have determined your 

modified AGI and your filing status, you can use Table 1-2 

or Table 1-3 to determine if the phaseout applies.

Social Security Recipients

Instead of using Table 1-2 or Table 1-3 and Worksheet 

1-2, Figuring Your Reduced IRA Deduction for 2013, later, 

complete the worksheets in Appendix B of this publication 

if, for the year, all of the following apply.

You received social security benefits.

You received taxable compensation.

Contributions were made to your traditional IRA.

You or your spouse was covered by an employer retirement plan.

Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable 

portion, if any, of your social security benefits. Appendix B 

includes an example with filled-in worksheets to assist 

you.

For 2014, if you are not covered by a retirement 

plan at work and you are married filing jointly with 

a spouse who is covered by a plan at work, your 

deduction is phased out if your modified AGI is more than 

$181,000 but less than $191,000. If your AGI is $191,000 

or more, you cannot take a deduction for a contribution to 

a traditional IRA.

Deduction Phaseout

The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your 

spouse was covered by an employer retirement plan.

Covered by a retirement plan. If you are covered by an 

employer retirement plan and you did not receive any 

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Page 14 Chapter 1 Traditional IRAs
social security retirement benefits, your IRA deduction 

may be reduced or eliminated depending on your filing 

status and modified AGI, as shown in Table 1-2.

For 2014, if you are covered by a retirement plan 

at work, your IRA deduction will not be reduced 

(phased out) unless your modified AGI is:

More than $60,000 but less than $70,000 for a single 

individual (or head of household),

TIP

More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying 

widow(er)), or

Less than $10,000 for a married individual filing a separate return.

If your spouse is covered. If you are not covered by an 

employer retirement plan, but your spouse is, and you did 

not receive any social security benefits, your IRA 

Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at 

Work

If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of 

your deduction.

IF your filing

status is ...

AND your modified adjusted gross income 

(modified AGI)

is ... THEN you can take ...

single or

head of household

 $59,000 or less a full deduction.

more than $59,000

but less than $69,000 a partial deduction.

$69,000 or more no deduction.

married filing jointly or 

qualifying widow(er)

 $95,000 or less a full deduction.

more than $95,000

but less than $115,000 a partial deduction.

$115,000 or more no deduction.

married filing separately2

less than $10,000 a partial deduction.

$10,000 or more no deduction.

1

 Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), later.

2

 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA 

deduction is determined under the “Single” filing status).

Table 1-2.

Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement 

Plan at Work

If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of 

your deduction.

IF your filing

status is ...

AND your modified adjusted gross income 

(modified AGI) is ... THEN you can take ...

single,

head of household, or

qualifying widow(er)

any amount a full deduction.

married filing jointly or separately with a 

spouse who is not covered by a plan

at work

any amount a full deduction.

married filing jointly with a spouse who is

covered by a plan

at work

$178,000 or less a full deduction.

more than $178,000

but less than $188,000 a partial deduction.

$188,000 or more no deduction.

married filing separately with a spouse who is

covered by a plan

at work2

less than $10,000 a partial deduction.

$10,000 or more no deduction.

1

 Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), later.

2

 You are entitled to the full deduction if you did not live with your spouse at any time during the year.

Table 1-3.

Chapter 1 Traditional IRAs Page 15
deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3.

Filing status. Your filing status depends primarily on 

your marital status. For this purpose, you need to know if 

your filing status is single or head of household, married 

filing jointly or qualifying widow(er), or married filing separately. If you need more information on filing status, see 

Publication 501, Exemptions, Standard Deduction, and 

Filing Information.

Lived apart from spouse. If you did not live with your 

spouse at any time during the year and you file a separate 

return, your filing status, for this purpose, is single.

Modified adjusted gross income (AGI). You can use 

Worksheet 1-1 to figure your modified AGI. If you made 

contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 

2013 and distributions in 2013, later.

Do not assume that your modified AGI is the 

same as your compensation. Your modified AGI 

may include income in addition to your compensation (discussed earlier) such as interest, dividends, and 

income from IRA distributions.

Form 1040. If you file Form 1040, refigure the amount 

on the page 1 “adjusted gross income” line without taking 

into account any of the following amounts.

IRA deduction.

Student loan interest deduction.

Tuition and fees deduction.

Domestic production activities deduction.

Foreign earned income exclusion.

Foreign housing exclusion or deduction.

Exclusion of qualified savings bond interest shown on 

Form 8815.

Exclusion of employer-provided adoption benefits 

shown on Form 8839.

This is your modified AGI.

Form 1040A. If you file Form 1040A, refigure the 

amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts.

IRA deduction.

Student loan interest deduction.

Tuition and fees deduction.

Exclusion of qualified savings bond interest shown on 

Form 8815.

This is your modified AGI.

CAUTION

!

Form 1040NR. If you file Form 1040NR, refigure the 

amount on the page 1 “adjusted gross income” line 

without taking into account any of the following amounts.

IRA deduction.

Student loan interest deduction.

Domestic production activities deduction.

Exclusion of qualified savings bond interest shown on 

Form 8815.

Exclusion of employer-provided adoption benefits 

shown on Form 8839.

This is your modified AGI.

Income from IRA distributions. If you received distributions in 2013 from one or more traditional IRAs and 

your traditional IRAs include only deductible contributions, 

the distributions are fully taxable and are included in your 

modified AGI.

Both contributions for 2013 and distributions in 

2013. If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and 

partly taxable.

You received distributions in 2013 from one or more 

traditional IRAs,

You made contributions to a traditional IRA for 2013, 

and

Some of those contributions may be nondeductible 

contributions. (See Nondeductible Contributions and 

Worksheet 1-2, later.)

If this is your situation, you must figure the taxable part of 

the traditional IRA distribution before you can figure your 

modified AGI. To do this, you can use Worksheet 1-5, 

later.

If at least one of the above does not apply, figure your 

modified AGI using Worksheet 1-1, later.

How To Figure Your Reduced IRA Deduction

If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using 

Worksheet 1-2. Figuring Your Reduced IRA Deduction for 

2013. The Instructions for Form 1040, Form 1040A, and 

Form 1040NR include similar worksheets that you can use 

instead of the worksheet in this publication.

If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, 

see Social Security Recipients, earlier.

Note. If you were married and both you and your 

spouse contributed to IRAs, figure your deduction and 

your spouse's deduction separately.

Page 16 Chapter 1 Traditional IRAs
Reporting Deductible Contributions

If you file Form 1040, enter your IRA deduction on line 32 

of that form. If you file Form 1040A, enter your IRA deduction on line 17 of that form. If you file Form 1040NR, enter 

your IRA deduction on line 32 of that form. You cannot deduct IRA contributions on Form 1040EZ or Form 

1040NR-EZ.

Self­employed. If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, 

line 28. If you file Form 1040NR, enter your deduction on 

line 28 of that form.

Nondeductible Contributions

Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your 

IRA of up to the general limit or, if it applies, the Kay Bailey 

Hutchison Spousal IRA limit. The difference between your 

total permitted contributions and your IRA deduction, if 

any, is your nondeductible contribution.

Example. Tony is 29 years old and single. In 2013, he 

was covered by a retirement plan at work. His salary is 

$62,000. His modified AGI is $70,000. Tony makes a 

$5,500 IRA contribution for 2013. Because he was covered by a retirement plan and his modified AGI is above 

$69,000, he cannot deduct his $5,500 IRA contribution. 

He must designate this contribution as a nondeductible 

contribution by reporting it on Form 8606.

Repayment of reservist distributions. Nondeductible 

contributions may include repayments of qualified reservist distributions. For more information, see Qualified reservist repayments under How Much Can Be Contributed, 

earlier.

Form 8606. To designate contributions as nondeductible, you must file Form 8606. (See the filled-in Forms 

8606 in this chapter.)

You do not have to designate a contribution as nondeductible until you file your tax return. When you file, you 

can even designate otherwise deductible contributions as 

nondeductible contributions.

You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the 

year.

A Form 8606 is not used for the year that you 

make a rollover from a qualified retirement plan to 

a traditional IRA and the rollover includes nontaxable amounts. In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. See 

Form 8606 under Distributions Fully or Partly Taxable, 

later.

Failure to report nondeductible contributions. If you 

do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. All distributions from 

your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were 

made.

Penalty for overstatement. If you overstate the amount 

of nondeductible contributions on your Form 8606 for any 

tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause.

Penalty for failure to file Form 8606. You will have to 

pay a $50 penalty if you do not file a required Form 8606, 

unless you can prove that the failure was due to reasonable cause.

Tax on earnings on nondeductible contributions. As 

long as contributions are within the contribution limits, 

CAUTION

!

Worksheet 1-1. Figuring Your Modified AGI Keep for Your Records

Use this worksheet to figure your modified AGI for traditional IRA purposes.

1. Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 

1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 

1040A, line 17; or Form 1040NR, line 32 ............................................. 1.

2. Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or 

Form 1040NR, line 33 ............................................................ 2.

3. Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 ........ 3.

4. Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, 

line 34 ......................................................................... 4.

5. Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, 

or Form 2555-EZ, line 18 ......................................................... 5.

6. Enter any foreign housing deduction from Form 2555, line 50 ........................... 6.

7. Enter any excludable savings bond interest from Form 8815, line 14 ...................... 7.

8. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 .......... 8.

9. Add lines 1 through 8. This is your Modified AGI for traditional IRA purposes .............. 9.

Chapter 1 Traditional IRAs Page 17
none of the earnings or gains on contributions (deductible 

or nondeductible) will be taxed until they are distributed.

Cost basis. You will have a cost basis in your traditional 

IRA if you made any nondeductible contributions. Your 

cost basis is the sum of the nondeductible contributions to 

your IRA minus any withdrawals or distributions of nondeductible contributions.

Commonly, distributions from your traditional 

IRAs will include both taxable and nontaxable 

(cost basis) amounts. See Are Distributions Taxable, later, for more information.

Recordkeeping. There is a recordkeeping worksheet, Appendix A. Summary Record of Traditional IRA(s) for 2013, that you can use to keep a 

record of deductible and nondeductible IRA contributions.

Examples — Worksheet for

Reduced IRA Deduction for 2013

The following examples illustrate the use of Worksheet 

1-2, Figuring Your Reduced IRA Deduction for 2013.

Example 1. For 2013, Tom and Betty file a joint return 

on Form 1040. They are both 39 years old. They are both 

employed and Tom is covered by his employer's retirement plan. Tom's salary is $59,000 and Betty's is $32,555. 

They each have a traditional IRA and their combined 

modified AGI, which includes $5,000 interest and dividend 

income, is $96,555. Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an 

employer plan, Tom is subject to the deduction phaseout 

discussed earlier under Limit if Covered by Employer 

Plan.

For 2013, Tom contributed $5,500 to his IRA and Betty 

contributed $5,500 to hers. Even though they file a joint 

return, they must use separate worksheets to figure the 

IRA deduction for each of them.

Tom can take a deduction of only $5,080.

He can choose to treat the $5,080 as either deductible 

or nondeductible contributions. He can either leave the 

$420 ($5,500 − $5,080) of nondeductible contributions in 

his IRA or withdraw them by April 15, 2014. He decides to 

treat the $5,080 as deductible contributions and leave the 

$420 of nondeductible contributions in his IRA.

Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. Figuring 

Your Reduced IRA Deduction for 2013—Example 1 Illustrated.

Betty figures her IRA deduction as follows. Betty can 

treat all or part of her contributions as either deductible or 

nondeductible. This is because her $5,500 contribution for 

2013 is not subject to the deduction phaseout discussed 

earlier under Limit if Covered by Employer Plan. She does 

not need to use Worksheet 1-2, Figuring Your Reduced 

IRA Deduction for 2013, because their modified AGI is not 

CAUTION

!

RECORDS

within the phaseout range that applies. Betty decides to 

treat her $5,500 IRA contributions as deductible.

The IRA deductions of $5,080 and $5,500 on the joint 

return for Tom and Betty total $10,580.

Example 2. For 2013, Ed and Sue file a joint return on 

Form 1040. They are both 39 years old. Ed is covered by 

his employer's retirement plan. Ed's salary is $45,000. 

Sue had no compensation for the year and did not contribute to an IRA. Sue is not covered by an employer plan. Ed 

contributed $5,500 to his traditional IRA and $5,500 to a 

traditional IRA for Sue (a Kay Bailey Hutchison Spousal 

IRA). Their combined modified AGI, which includes 

$2,000 interest and dividend income and a large capital 

gain from the sale of stock, is $180,555.

Because the combined modified AGI is $115,000 or 

more, Ed cannot deduct any of the contribution to his traditional IRA. He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 

2014.

Sue figures her IRA deduction as shown on Worksheet 

1-2. Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated.

What if You Inherit an IRA?

If you inherit a traditional IRA, you are called a beneficiary. 

A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. 

Beneficiaries of a traditional IRA must include in their 

gross income any taxable distributions they receive.

Inherited from spouse. If you inherit a traditional IRA 

from your spouse, you generally have the following three 

choices. You can:

1. Treat it as your own IRA by designating yourself as 

the account owner.

2. Treat it as your own by rolling it over into your IRA, or 

to the extent it is taxable, into a:

a. Qualified employer plan,

b. Qualified employee annuity plan (section 403(a) 

plan),

c. Tax-sheltered annuity plan (section 403(b) plan),

d. Deferred compensation plan of a state or local 

government (section 457 plan), or

3. Treat yourself as the beneficiary rather than treating 

the IRA as your own.

Treating it as your own. You will be considered to 

have chosen to treat the IRA as your own if:

Contributions (including rollover contributions) are 

made to the inherited IRA, or

You do not take the required minimum distribution for 

a year as a beneficiary of the IRA.

Page 18 Chapter 1 Traditional IRAs
Figuring Your Reduced IRA 

Deduction for 2013

Worksheet 1-2. 

Keep for Your Records

(Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts 

shown below for your coverage situation and filing status.)

Note. If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's 

deduction separately.

IF you ...

AND your 

filing status is ...

AND your

modified AGI

is over ...

THEN enter on 

line 1 below ...

are covered by an 

employer plan 

single or head of 

household $59,000 $69,000

married filing jointly or 

qualifying widow(er) $95,000 $115,000

married filing separately $0 $10,000

are not covered by an 

employer plan, but 

your spouse is covered

married filing jointly $178,000 $188,000

married filing separately $0 $10,000

1. Enter applicable amount from table above ............................................ 1.

2. Enter your modified AGI (that of both spouses, if married filing jointly) .................. 2.

Note. If line 2 is equal to or more than the amount on line 1, stop here.

Your IRA contributions are not deductible. See Nondeductible Contributions, earlier.

3. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married filing 

jointly or qualifying widow(er) and you are covered by an employer plan), stop here.

You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 

or older) or 100% of your (and if married filing jointly, your spouse's) compensation, 

whichever is less ................................................................. 3.

4. Multiply line 3 by the percentage below that applies to you. If the result is not a 

multiple of $10, round it to the next highest multiple of $10. (For example, $611.40 is 

rounded to $620.) However, if the result is less than $200, enter $200.

Married filing jointly or qualifying widow(er) and you are covered by an employer 

plan, multiply line 3 by 27.5% (.275) (by 32.5% (.325) if you are age 50 or older).

All others, multiply line 3 by 55% (.55) (by 65% (.65) if you are age 50 or older).

.....4.

5. Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 

(deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and 

qualified plans). If you are filing a joint return and your compensation is less than your 

spouse's, include your spouse's compensation reduced by his or her traditional IRA and 

Roth IRA contributions for this year. If you file Form 1040 or Form 1040NR, do not reduce 

your compensation by any losses from self-employment ............................... 5.

6. Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than 

$5,500 ($6,500 if you are age 50 or older). If contributions are more than $5,500 ($6,500 if 

you are age 50 or older), see Excess Contributions, later. .............................. 6.

7. IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller amount if 

you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever 

applies. If line 6 is more than line 7 and you want to make a nondeductible contribution, go to 

line 8 ........................................................................... 7.

8. Nondeductible contribution. Subtract line 7 from line 5 or 6, whichever is smaller.

Enter the result here and on line 1 of your Form 8606 .................................. 8.

Chapter 1 Traditional IRAs Page 19
Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated

(Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts 

shown below for your coverage situation and filing status.)

Note. If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's 

deduction separately.

IF you ...

AND your 

filing status is ...

AND your

modified 

AGI

is over ...

THEN enter on 

line 1 below ...

are covered by an 

employer plan 

single or head of 

household $59,000 $69,000

married filing jointly or 

qualifying widow(er) $95,000 $115,000

married filing 

separately $0 $10,000

are not covered by 

an employer plan, but 

your spouse is 

covered

married filing jointly $178,000 $188,000

married filing 

separately $0 $10,000

1. Enter applicable amount from table above .......................................... 1. 115,000

2. Enter your modified AGI (that of both spouses, if married filing jointly) ............... 2. 96,555

Note. If line 2 is equal to or more than the amount on line 1, stop here.

Your IRA contributions are not deductible. See Nondeductible Contributions, earlier.

3. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married 

filing jointly or qualifying widow(er) and you are covered by an employer plan), 

stop here. You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if 

you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) 

compensation, whichever is less .................................................. 3. 18,445

4. Multiply line 3 by the percentage below that applies to you. If the result is not a 

multiple of $10, round it to the next highest multiple of $10. (For example, 

$611.40 is rounded to $620.) However, if the result is less than $200, enter 

$200.

Married filing jointly or qualifying widow(er) and you are covered by an 

employer plan, multiply line 3 by 27.5% (.275) (by 32.5% (.325) if you are 

age 50 or older).

All others, multiply line 3 by 55% (.55) (by 65% (.65) if you are age 50 or 

older).

.....4. 5,080

5. Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 

(deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and 

qualified plans). If you are filing a joint return and your compensation is less than your 

spouse's, include your spouse's compensation reduced by his or her traditional IRA and 

Roth IRA contributions for this year. If you file Form 1040 or Form 1040NR, do not 

reduce your compensation by any losses from self-employment ..................... 5. 59,000

6. Enter contributions made, or to be made, to your IRA for 2013, but do not enter more 

than $5,500 ($6,500 if you are age 50 or older). If contributions are more than $5,500 

($6,500 if you are age 50 or older), see Excess Contributions, later. .................. 6. 5,500

7. IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller 

amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, 

whichever applies. If line 6 is more than line 7 and you want to make a nondeductible 

contribution, go to line 8 .......................................................... 7. 5,080

8. Nondeductible contribution. Subtract line 7 from line 5 or 6, whichever is smaller.

Enter the result here and on line 1 of your Form 8606 ............................... 8. 420

Page 20 Chapter 1 Traditional IRAs
Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated

(Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts 

shown below for your coverage situation and filing status.)

Note. If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's 

deduction separately.

IF you ...

AND your 

filing status is ...

AND your

modified 

AGI

is over ...

THEN enter on 

line 1 below ...

are covered by an 

employer plan 

single or head of 

household $59,000 $69,000

married filing jointly or 

qualifying widow(er) $95,000 $115,000

married filing 

separately $0 $10,000

are not covered by 

an employer plan, but 

your spouse is 

covered

married filing jointly $178,000 $188,000

married filing 

separately $0 $10,000

1. Enter applicable amount from table above .......................................... 1. 188,000

2. Enter your modified AGI (that of both spouses, if married filing jointly) ............... 2. 180,555

Note. If line 2 is equal to or more than the amount on line 1, stop here.

Your IRA contributions are not deductible. See Nondeductible Contributions, earlier.

3. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married 

filing jointly or qualifying widow(er) and you are covered by an employer plan), 

stop here. You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if 

you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) 

compensation, whichever is less .................................................. 3. 7,445

4. Multiply line 3 by the percentage below that applies to you. If the result is not a 

multiple of $10, round it to the next highest multiple of $10. (For example, 

$611.40 is rounded to $620.) However, if the result is less than $200, enter 

$200.

Married filing jointly or qualifying widow(er) and you are covered by an 

employer plan, multiply line 3 by 27.5% (.275) (by 32.5% (.325) if you are 

age 50 or older).

All others, multiply line 3 by 55% (.55) (by 65% (.65) if you are age 50 or 

older).

.....4. 4,100

5. Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 

(deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and 

qualified plans). If you are filing a joint return and your compensation is less than your 

spouse's, include your spouse's compensation reduced by his or her traditional IRA and 

Roth IRA contributions for this year. If you file Form 1040 or Form 1040NR, do not 

reduce your compensation by any losses from self-employment ..................... 5. 39,500

6. Enter contributions made, or to be made, to your IRA for 2013, but do not enter more 

than $5,500 ($6,500 if you are age 50 or older). If contributions are more than $5,500 

($6,500 if you are age 50 or older), see Excess Contributions, later. .................. 6. 5,500

7. IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller 

amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, 

whichever applies. If line 6 is more than line 7 and you want to make a nondeductible 

contribution, go to line 8 .......................................................... 7. 4,100

8. Nondeductible contribution. Subtract line 7 from line 5 or 6, whichever is smaller.

Enter the result here and on line 1 of your Form 8606 ............................... 8. 1,400

Chapter 1 Traditional IRAs Page 21
You will only be considered to have chosen to treat the 

IRA as your own if:

You are the sole beneficiary of the IRA, and

You have an unlimited right to withdraw amounts from 

it.

However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over 

into your own IRA within the 60-day time limit, as long as 

the distribution is not a required distribution, even if you 

are not the sole beneficiary of your deceased spouse's 

IRA. For more information, see When Must You Withdraw 

Assets? (Required Minimum Distributions), later.

Inherited from someone other than spouse. If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your 

own. This means that you cannot make any contributions 

to the IRA. It also means you cannot roll over any amounts 

into or out of the inherited IRA. However, you can make a 

trustee-to-trustee transfer as long as the IRA into which 

amounts are being moved is set up and maintained in the 

name of the deceased IRA owner for the benefit of you as 

beneficiary.

Like the original owner, you generally will not owe tax 

on the assets in the IRA until you receive distributions 

from it. You must begin receiving distributions from the 

IRA under the rules for distributions that apply to beneficiaries.

IRA with basis. If you inherit a traditional IRA from a person who had a basis in the IRA because of nondeductible 

contributions, that basis remains with the IRA. Unless you 

are the decedent's spouse and choose to treat the IRA as 

your own, you cannot combine this basis with any basis 

you have in your own traditional IRA(s) or any basis in traditional IRA(s) you inherited from other decedents. If you 

take distributions from both an inherited IRA and your IRA, 

and each has basis, you must complete separate Forms 

8606 to determine the taxable and nontaxable portions of 

those distributions.

Federal estate tax deduction. A beneficiary may be 

able to claim a deduction for estate tax resulting from certain distributions from a traditional IRA. The beneficiary 

can deduct the estate tax paid on any part of a distribution 

that is income in respect of a decedent. He or she can 

take the deduction for the tax year the income is reported. 

For information on claiming this deduction, see Estate Tax 

Deduction under Other Tax Information in Publication 559, 

Survivors, Executors, and Administrators.

Any taxable part of a distribution that is not income in 

respect of a decedent is a payment the beneficiary must 

include in income. However, the beneficiary cannot take 

any estate tax deduction for this part.

A surviving spouse can roll over the distribution to another traditional IRA and avoid including it in income for 

the year received.

More information. For more information about rollovers, 

required distributions, and inherited IRAs, see:

Rollovers, later, under Can You Move Retirement Plan 

Assets,

When Must You Withdraw Assets? (Required Minimum Distributions), later, and

The discussion of IRA Beneficiaries, later, under 

When Must You Withdraw Assets? (Required Minimum Distributions).

Can You Move Retirement

Plan Assets?

You can transfer, tax free, assets (money or property) 

from other retirement programs (including traditional IRAs) 

to a traditional IRA. You can make the following kinds of 

transfers.

Transfers from one trustee to another.

Rollovers.

Transfers incident to a divorce.

This chapter discusses all three kinds of transfers.

Transfers to Roth IRAs. Under certain conditions, you 

can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. For more information 

about these transfers, see Converting From Any Traditional IRA Into a Roth IRA, later in this chapter, and Can 

You Move Amounts Into a Roth IRA? in chapter 2.

Transfers to Roth IRAs from other retirement 

plans. Under certain conditions, you can move assets 

from a qualified retirement plan to a Roth IRA. For more 

information, see Can You Move Amounts Into a Roth IRA? 

in chapter 2.

Trustee­to­Trustee Transfer

A transfer of funds in your traditional IRA from one trustee 

directly to another, either at your request or at the trustee's 

request, is not a rollover. Because there is no distribution 

to you, the transfer is tax free. Because it is not a rollover, 

it is not affected by the 1-year waiting period required between rollovers. This waiting period is discussed later under Rollover From One IRA Into Another.

For information about direct transfers from retirement 

programs other than traditional IRAs, see Direct rollover 

option, later.

Rollovers

Generally, a rollover is a tax-free distribution to you of 

cash or other assets from one retirement plan that you 

contribute to another retirement plan. The contribution to 

the second retirement plan is called a “rollover contribution.”

Page 22 Chapter 1 Traditional IRAs
Note. An amount rolled over tax free from one retirement plan to another is generally includible in income 

when it is distributed from the second plan.

Kinds of rollovers to a traditional IRA. You can roll 

over amounts from the following plans into a traditional 

IRA:

A traditional IRA,

An employer's qualified retirement plan for its employees,

A deferred compensation plan of a state or local government (section 457 plan), or

A tax-sheltered annuity plan (section 403 plan).

Also, see Table 1-4 above.

Treatment of rollovers. You cannot deduct a rollover 

contribution, but you must report the rollover distribution 

on your tax return as discussed later under Reporting rollovers from IRAs and Reporting rollovers from employer 

plans.

Rollover notice. A written explanation of rollover 

treatment must be given to you by the plan (other than an 

IRA) making the distribution. See Written explanation to 

recipients, later, for more details.

Kinds of rollovers from a traditional IRA. You may be 

able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. These plans include the 

Federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments 

(section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). The part of the distribution that you can 

roll over is the part that would otherwise be taxable (includible in your income). Qualified plans may, but are not 

required to, accept such rollovers.

Tax treatment of a rollover from a traditional IRA 

to an eligible retirement plan other than an IRA. Ordinarily, when you have basis in your IRAs, any distribution 

is considered to include both nontaxable and taxable 

amounts. Without a special rule, the nontaxable portion of 

such a distribution could not be rolled over. However, a 

special rule treats a distribution you roll over into an eligible retirement plan as including only otherwise taxable 

Table 1­4. Rollover Chart

The following chart indicates the rollovers that are permitted between various types of plans.

Roll To

Roth IRA Traditional

IRA

SIMPLE

IRA

SEP IRA 457(b) 

Plan

Qualified 

Plan1

 (pre­tax)

403(b) Plan

(pre­tax)

Designated 

Roth 

Account 

(401(k), 

403(b) or 

457(b)2)

Roth IRA Yes No No No No No No No

Traditional 

IRA

Yes3 Yes No Yes Yes4 Yes Yes No

SIMPLE 

IRA

Yes3, after 

2 years

Yes, after 2 

years

Yes Yes, after 2 

years

Yes4, after 

2 years

Yes, after 2 

years

Yes, after 2 

years

No

SEP IRA Yes3 Yes No Yes Yes4 Yes Yes No

457(b) Plan Yes3 Yes No Yes Yes Yes Yes Yes,3, 5 after 

12/31/10

Roll 

From

Qualified 

Plan1

 (pre­tax)

Yes3 Yes No Yes Yes4 Yes Yes Yes,3, 5 after 

9/27/10

403(b) Plan

(pre­tax)

Yes3 Yes No Yes Yes4 Yes Yes Yes,3, 5 after 

9/27/10

Designated

 Roth 

Account 

(401(k), 

403(b) or 

457(b)2)

Yes No No No No No No Yes, if a 

direct 

trustee-totrustee 

transfer

1Qualified plans include, for example, profit-sharing, 401(k), money purchase, and defined benefit plans.

2Governmental 457(b) plans, after December 31, 2010.

3Must include in income.

4Must have separate accounts.

5Must be an in-plan rollover.

Chapter 1 Traditional IRAs Page 23
amounts if the amount you either leave in your IRAs or do 

not roll over is at least equal to your basis. The effect of 

this special rule is to make the amount in your traditional 

IRAs that you can roll over to an eligible retirement plan as 

large as possible.

Eligible retirement plans. The following are considered eligible retirement plans.

Individual retirement arrangements (IRAs).

Qualified trusts.

Qualified employee annuity plans under section 

403(a).

Deferred compensation plans of state and local governments (section 457 plans).

Tax-sheltered annuities (section 403(b) annuities).

Time Limit for Making

a Rollover Contribution

You generally must make the rollover contribution by the 

60th day after the day you receive the distribution from 

your traditional IRA or your employer's plan.

Example. You received an eligible rollover distribution 

from your traditional IRA on June 30, 2013, that you intend 

to roll over to your 403(b) plan. To postpone including the 

distribution in your income, you must complete the rollover 

by August 29, 2013, the 60th day following June 30.

The IRS may waive the 60-day requirement where the 

failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or 

other event beyond your reasonable control. For exceptions to the 60-day period, see Automatic waiver, Other 

waivers, and Extension of rollover period, later.

Rollovers completed after the 60­day period. In the 

absence of a waiver, amounts not rolled over within the 

60-day period do not qualify for tax-free rollover treatment. 

You must treat them as a taxable distribution from either 

your IRA or your employer's plan. These amounts are taxable in the year distributed, even if the 60-day period expires in the next year. You may also have to pay a 10% 

additional tax on early distributions as discussed later under Early Distributions.

Unless there is a waiver or an extension of the 60-day 

rollover period, any contribution you make to your IRA 

more than 60 days after the distribution is a regular contribution, not a rollover contribution.

Example. You received a distribution in late December 2013 from a traditional IRA that you do not roll over 

into another traditional IRA within the 60-day limit. You do 

not qualify for a waiver. This distribution is taxable in 2013 

even though the 60-day limit was not up until 2014.

Automatic waiver. The 60-day rollover requirement is 

waived automatically only if all of the following apply.

The financial institution receives the funds on your behalf before the end of the 60-day rollover period.

You followed all the procedures set by the financial institution for depositing the funds into an eligible retirement plan within the 60-day period (including giving 

instructions to deposit the funds into an eligible retirement plan).

The funds are not deposited into an eligible retirement 

plan within the 60-day rollover period solely because 

of an error on the part of the financial institution.

The funds are deposited into an eligible retirement 

plan within 1 year from the beginning of the 60-day 

rollover period.

It would have been a valid rollover if the financial institution had deposited the funds as instructed.

Other waivers. If you do not qualify for an automatic 

waiver, you can apply to the IRS for a waiver of the 60-day 

rollover requirement. To apply for a waiver, you must submit a request for a letter ruling under the appropriate IRS 

revenue procedure. This revenue procedure is generally 

published in the first Internal Revenue Bulletin of the year. 

You must also pay a user fee with the application.

In determining whether to grant a waiver, the IRS will 

consider all relevant facts and circumstances, including:

Whether errors were made by the financial institution 

(other than those described under Automatic waiver 

above),

Whether you were unable to complete the rollover due 

to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error,

Whether you used the amount distributed (for example, in the case of payment by check, whether you 

cashed the check), and

How much time has passed since the date of distribution.

Amount. The rules regarding the amount that can be rolled over within the 60-day time period also apply to the 

amount that can be deposited due to a waiver. For example, if you received $6,000 from your IRA, the most that 

you can deposit into an eligible retirement plan due to a 

waiver is $6,000.

Extension of rollover period. If an amount distributed 

to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 

60-day period allowed for a rollover, two special rules extend the rollover period.

The period during which the amount is a frozen deposit is not counted in the 60-day period.

The 60-day period cannot end earlier than 10 days after the deposit is no longer frozen.

Page 24 Chapter 1 Traditional IRAs
Frozen deposit. This is any deposit that cannot be 

withdrawn from a financial institution because of either of 

the following reasons.

The financial institution is bankrupt or insolvent.

The state where the institution is located restricts withdrawals because one or more financial institutions in 

the state are (or are about to be) bankrupt or insolvent.

Rollover From One IRA Into Another

You can withdraw, tax free, all or part of the assets from 

one traditional IRA if you reinvest them within 60 days in 

the same or another traditional IRA. Because this is a rollover, you cannot deduct the amount that you reinvest in 

an IRA.

You may be able to treat a contribution made to 

one type of IRA as having been made to a different type of IRA. This is called recharacterizing the 

contribution. See Recharacterizations in this chapter for 

more information.

Waiting period between rollovers. Generally, if you 

make a tax-free rollover of any part of a distribution from a 

traditional IRA, you cannot, within a 1-year period, make a 

tax-free rollover of any later distribution from that same 

IRA. You also cannot make a tax-free rollover of any 

amount distributed, within the same 1-year period, from 

the IRA into which you made the tax-free rollover.

The 1-year period begins on the date you receive the 

IRA distribution, not on the date you roll it over into an IRA.

Example. You have two traditional IRAs, IRA-1 and 

IRA-2. You make a tax-free rollover of a distribution from 

IRA-1 into a new traditional IRA (IRA-3). You cannot, 

within 1 year of the distribution from IRA-1, make a 

tax-free rollover of any distribution from either IRA-1 or 

IRA-3 into another traditional IRA.

However, the rollover from IRA-1 into IRA-3 does not 

prevent you from making a tax-free rollover from IRA-2 

into any other traditional IRA. This is because you have 

not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2.

Exception. There is an exception to the rule that 

amounts rolled over tax free into an IRA cannot be rolled 

over tax free again within the 1-year period beginning on 

the date of the original distribution. The exception applies 

to a distribution that meets all three of the following requirements.

1. It is made from a failed financial institution by the Federal Deposit Insurance Corporation (FDIC) as receiver 

for the institution.

2. It was not initiated by either the custodial institution or 

the depositor.

3. It was made because:

a. The custodial institution is insolvent, and

TIP

b. The receiver is unable to find a buyer for the institution.

The same property must be rolled over. If property is 

distributed to you from an IRA and you complete the rollover by contributing property to an IRA, your rollover is tax 

free only if the property you contribute is the same property that was distributed to you.

Partial rollovers. If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free 

and keep the rest of it. The amount you keep will generally 

be taxable (except for the part that is a return of nondeductible contributions). The amount you keep may be subject to the 10% additional tax on early distributions discussed later under What Acts Result in Penalties or 

Additional Taxes.

Required distributions. Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover 

treatment.

Inherited IRAs. If you inherit a traditional IRA from your 

spouse, you generally can roll it over, or you can choose 

to make the inherited IRA your own as discussed earlier 

under What if You Inherit an IRA.

Not inherited from spouse. If you inherit a traditional 

IRA from someone other than your spouse, you cannot roll 

it over or allow it to receive a rollover contribution. You 

must withdraw the IRA assets within a certain period. For 

more information, see When Must You Withdraw Assets? 

(Required Minimum Distributions), later.

Rollover of required distributions not allowed. If 

the owner had a required distribution in the year of his or 

her death, you cannot roll over such distribution. If you do 

not treat the IRA as your own, you cannot roll over any of 

the required distributions in years after your deceased 

spouse's death. Any rollover contributions you make to 

your own IRA of these required distributions are subject to 

the 6% tax discussed in Tax on Excess Contributions, 

later.

For more information on distribution rules after the owner's death, see IRA Beneficiaries, later.

Reporting rollovers from IRAs. Report any rollover 

from one traditional IRA to the same or another traditional 

IRA on Form 1040, lines 15a and 15b; Form 1040A, lines 

11a and 11b; or Form 1040NR, lines 16a and 16b.

Enter the total amount of the distribution on Form 1040, 

line 15a; Form 1040A, line 11a; or Form 1040NR, 

line 16a. If the total amount on Form 1040, line 15a; Form 

1040A, line 11a; or Form 1040NR, line 16a, was rolled 

over, enter zero on Form 1040, line 15b; Form 1040A, 

line 11b; or Form 1040NR, line 16b. If the total distribution 

was not rolled over, enter the taxable portion of the part 

that was not rolled over on Form 1040, line 15b; Form 

1040A, line 11b; or Form 1040NR, line 16b. Put “Rollover” 

next to line 15b, Form 1040; line 11b, Form 1040A; or 

line 16b, Form 1040NR. See your tax return instructions.

Chapter 1 Traditional IRAs Page 25
If you rolled over the distribution into a qualified plan 

(other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did.

For information on how to figure the taxable portion, 

see Are Distributions Taxable, later.

Rollover From Employer's Plan

Into an IRA

You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your 

deceased spouse's):

Employer's qualified pension, profit-sharing, or stock 

bonus plan;

Annuity plan;

Tax-sheltered annuity plan (section 403(b) plan); or

Governmental deferred compensation plan (section 

457 plan).

A qualified plan is one that meets the requirements of 

the Internal Revenue Code.

Eligible rollover distribution. Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except 

the following.

1. A required minimum distribution (explained later under When Must You Withdraw Assets? (Required 

Minimum Distributions)).

2. A hardship distribution.

3. Any of a series of substantially equal periodic distributions paid at least once a year over:

a. Your lifetime or life expectancy,

b. The lifetimes or life expectancies of you and your 

beneficiary, or

c. A period of 10 years or more.

4. Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable 

gains.

5. A loan treated as a distribution because it does not 

satisfy certain requirements either when made or later 

(such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan.

6. Dividends on employer securities.

7. The cost of life insurance coverage.

Your rollover into a traditional IRA may include both 

amounts that would be taxable and amounts that would 

not be taxable if they were distributed to you, but not rolled over. To the extent the distribution is rolled over into a 

traditional IRA, it is not includible in your income.

Any nontaxable amounts that you roll over into 

your traditional IRA become part of your basis 

(cost) in your IRAs. To recover your basis when 

you take distributions from your IRA, you must complete 

Form 8606 for the year of the distribution. See Form 8606 

under Distributions Fully or Partly Taxable, later.

Rollover by nonspouse beneficiary. If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans 

listed above into a traditional IRA. You must make the rollover by a direct trustee-to-trustee transfer into an inherited 

IRA.

You will determine your required minimum distributions 

in years after you make the rollover based on whether the 

employee died before his or her required beginning date 

for taking distributions from the plan. For more information, see Distributions after the employee's death under 

Tax on Excess Accumulation in Publication 575.

Written explanation to recipients. Before making an eligible rollover distribution, the administrator of a qualified 

retirement plan must provide you with a written explanation. It must tell you about all of the following.

Your right to have the distribution paid tax free directly 

to a traditional IRA or another eligible retirement plan.

The requirement to withhold tax from the distribution if 

it is not paid directly to a traditional IRA or another eligible retirement plan.

The tax treatment of any part of the distribution that 

you roll over to a traditional IRA or another eligible retirement plan within 60 days after you receive the distribution.

Other qualified retirement plan rules, if they apply, including those for lump-sum distributions, alternate 

payees, and cash or deferred arrangements.

How the plan receiving the distribution differs from the 

plan making the distribution in its restrictions and tax 

consequences.

The plan administrator must provide you with this written explanation no earlier than 90 days and no later than 

30 days before the distribution is made.

However, you can choose to have a distribution made 

less than 30 days after the explanation is provided as long 

as both of the following requirements are met.

You are given at least 30 days after the notice is provided to consider whether you want to elect a direct rollover.

You are given information that clearly states that you 

have this 30-day period to make the decision.

Contact the plan administrator if you have any questions 

regarding this information.

Withholding requirement. Generally, if an eligible rollover distribution is paid directly to you, the payer must 

withhold 20% of it. This applies even if you plan to roll 

over the distribution to a traditional IRA. You can avoid 

TIP

Page 26 Chapter 1 Traditional IRAs
withholding by choosing the direct rollover option, discussed later.

Exceptions. The payer does not have to withhold from 

an eligible rollover distribution paid to you if either of the 

following conditions apply.

The distribution and all previous eligible rollover distributions you received during your tax year from the 

same plan (or, at the payer's option, from all your employer's plans) total less than $200.

The distribution consists solely of employer securities, 

plus cash of $200 or less in lieu of fractional shares.

The amount withheld is part of the distribution. If 

you roll over less than the full amount of the distribution, you may have to include in your income 

the amount you do not roll over. However, you can make 

up the amount withheld with funds from other sources.

Other withholding rules. The 20% withholding requirement does not apply to distributions that are not eligible rollover distributions. However, other withholding rules 

apply to these distributions. The rules that apply depend 

on whether the distribution is a periodic distribution or a 

nonperiodic distribution. For either of these types of distributions, you can still choose not to have tax withheld. For 

more information, see Publication 575.

Direct rollover option. Your employer's qualified plan 

must give you the option to have any part of an eligible 

rollover distribution paid directly to a traditional IRA. The 

plan is not required to give you this option if your eligible 

rollover distributions are expected to total less than $200 

for the year.

Withholding. If you choose the direct rollover option, 

no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the traditional IRA.

If any part is paid to you, the payer must withhold 20% 

of that part's taxable amount.

Choosing an option. Table 1-5 next may help you decide which distribution option to choose. Carefully compare the effects of each option.

CAUTION

!

Comparison of Payment to You Versus Direct Rollover

Affected item

Result of a payment to 

you

Result of a

direct rollover

withholding The payer must withhold 

20% of the taxable part.

There is no 

withholding.

additional tax

If you are under age 591

2, 

a 10% additional tax may 

apply to the taxable part 

(including an amount 

equal to the tax withheld) 

that is not rolled over. 

There is no 10% 

additional tax. See 

Early Distributions, 

later.

when to report

as income

Any taxable part 

(including the taxable part 

of any amount withheld) 

not rolled over is income 

to you in the year paid.

Any taxable part is not 

income to you until 

later distributed to you 

from the IRA.

If you decide to roll over any part of a distribution, 

the direct rollover option will generally be to your 

advantage. This is because you will not have 

20% withholding or be subject to the 10% additional tax 

under that option.

If you have a lump­sum distribution and do not plan to 

roll over any part of it, the distribution may be eligible for 

special tax treatment that could lower your tax for the distribution year. In that case, you may want to see Publication 575 and Form 4972, Tax on Lump­Sum Distributions, 

and its instructions to determine whether your distribution 

qualifies for special tax treatment and, if so, to figure your 

tax under the special methods.

You can then compare any advantages from using Form 

4972 to figure your tax on the lump­sum distribution with 

any advantages from rolling over all or part of the distribution. However, if you roll over any part of the lump­sum 

distribution, you cannot use the Form 4972 special tax 

treatment for any part of the distribution.

Contributions you made to your employer's plan. 

You can roll over a distribution of voluntary deductible employee contributions (DECs) you made to your employer's 

plan. Prior to January 1, 1987, employees could make and 

deduct these contributions to certain qualified employers' 

plans and government plans. These are not the same as 

an employee's elective contributions to a 401(k) plan, 

which are not deductible by the employee.

If you receive a distribution from your employer's qualified plan of any part of the balance of your DECs and the 

earnings from them, you can roll over any part of the distribution.

No waiting period between rollovers. The once-a-year 

limit on IRA-to-IRA rollovers does not apply to eligible rollover distributions from an employer plan. You can roll over 

more than one distribution from the same employer plan 

within a year.

IRA as a holding account (conduit IRA) for rollovers 

to other eligible plans. If you receive an eligible rollover 

distribution from your employer's plan, you can roll over 

part or all of it into one or more conduit IRAs. You can later 

Table 1-5.

TIP

Chapter 1 Traditional IRAs Page 27
roll over those assets into a new employer's plan. You can 

use a traditional IRA as a conduit IRA. You can roll over 

part or all of the conduit IRA to a qualified plan, even if you 

make regular contributions to it or add funds from sources 

other than your employer's plan. However, if you make 

regular contributions to the conduit IRA or add funds from 

other sources, the qualified plan into which you move 

funds will not be eligible for any optional tax treatment for 

which it might have otherwise qualified.

Property and cash received in a distribution. If you 

receive both property and cash in an eligible rollover distribution, you can roll over part or all of the property, part 

or all of the cash, or any combination of the two that you 

choose.

The same property (or sales proceeds) must be 

rolled over. If you receive property in an eligible rollover 

distribution from a qualified retirement plan, you cannot 

keep the property and contribute cash to a traditional IRA 

in place of the property. You must either roll over the property or sell it and roll over the proceeds, as explained next.

Sale of property received in a distribution from a 

qualified plan. Instead of rolling over a distribution of 

property other than cash, you can sell all or part of the 

property and roll over the amount you receive from the 

sale (the proceeds) into a traditional IRA. You cannot 

keep the property and substitute your own funds for property you received.

Example. You receive a total distribution from your 

employer's plan consisting of $10,000 cash and $15,000 

worth of property. You decide to keep the property. You 

can roll over to a traditional IRA the $10,000 cash received, but you cannot roll over an additional $15,000 representing the value of the property you choose not to sell.

Treatment of gain or loss. If you sell the distributed 

property and roll over all the proceeds into a traditional 

IRA, no gain or loss is recognized. The sale proceeds (including any increase in value) are treated as part of the 

distribution and are not included in your gross income.

Example. On September 6, Mike received a lump-sum 

distribution from his employer's retirement plan of $50,000 

in cash and $50,000 in stock. The stock was not stock of 

his employer. On September 24, he sold the stock for 

$60,000. On October 6, he rolled over $110,000 in cash 

($50,000 from the original distribution and $60,000 from 

the sale of stock). Mike does not include the $10,000 gain 

from the sale of stock as part of his income because he 

rolled over the entire amount into a traditional IRA.

Note. Special rules may apply to distributions of employer securities. For more information, see Figuring the 

Taxable Amount under Taxation of Nonperiodic Payments 

in Publication 575.

Partial rollover. If you received both cash and property, 

or just property, but did not roll over the entire distribution, 

see Rollovers in Publication 575.

Life insurance contract. You cannot roll over a life insurance contract from a qualified plan into a traditional 

IRA.

Distributions received by a surviving spouse. If you 

receive an eligible rollover distribution (defined earlier) 

from your deceased spouse's eligible retirement plan (defined earlier), you can roll over part or all of it into a traditional IRA. You can also roll over all or any part of a distribution of deductible employee contributions (DECs).

Distributions under divorce or similar proceedings 

(alternate payees). If you are the spouse or former 

spouse of an employee and you receive a distribution 

from a qualified retirement plan as a result of divorce or 

similar proceedings, you may be able to roll over all or part 

of it into a traditional IRA. To qualify, the distribution must 

be:

One that would have been an eligible rollover distribution (defined earlier) if it had been made to the employee, and

Made under a qualified domestic relations order.

Qualified domestic relations order. A domestic relations order is a judgment, decree, or order (including approval of a property settlement agreement) that is issued 

under the domestic relations law of a state. A “qualified 

domestic relations order” gives to an alternate payee (a 

spouse, former spouse, child, or dependent of a participant in a retirement plan) the right to receive all or part of 

the benefits that would be payable to a participant under 

the plan. The order requires certain specific information, 

and it cannot alter the amount or form of the benefits of 

the plan.

Tax treatment if all of an eligible distribution is not 

rolled over. Any part of an eligible rollover distribution 

that you keep is taxable in the year you receive it. If you do 

not roll over any of it, special rules for lump-sum distributions may apply. See Lump­Sum Distributions under Taxation of Nonperiodic Payments in Publication 575. The 

10% additional tax on early distributions, discussed later 

under What Acts Result in Penalties or Additional Taxes, 

does not apply.

Keogh plans and rollovers. If you are self-employed, 

you are generally treated as an employee for rollover purposes. Consequently, if you receive an eligible rollover 

distribution from a Keogh plan (a qualified plan with at 

least one self-employed participant), you can roll over all 

or part of the distribution (including a lump-sum distribution) into a traditional IRA. For information on lump-sum 

distributions, see Lump­Sum Distributions under Taxation 

of Nonperiodic Payments in Publication 575.

More information. For more information about Keogh 

plans, see chapter 4 of Publication 560.

Distribution from a tax­sheltered annuity. If you receive an eligible rollover distribution from a tax-sheltered 

annuity plan (section 403(b) plan), you can roll it over into 

a traditional IRA.

Page 28 Chapter 1 Traditional IRAs
Receipt of property other than money. If you receive property other than money, you can sell the property 

and roll over the proceeds as discussed earlier.

Rollover from bond purchase plan. If you redeem retirement bonds that were distributed to you under a qualified bond purchase plan, you can roll over tax free into a 

traditional IRA the part of the amount you receive that is 

more than your basis in the retirement bonds.

Reporting rollovers from employer plans. Enter the 

total distribution (before income tax or other deductions 

were withheld) on Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, line 17a. This amount should 

be shown in box 1 of Form 1099-R. From this amount, 

subtract any contributions (usually shown in box 5 of Form 

1099-R) that were taxable to you when made. From that 

result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. Enter 

the remaining amount, even if zero, on Form 1040, line 

16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 

Also, enter "Rollover" next to line 16b on Form 1040; 

line 12b of Form 1040A; or line 17b of Form 1040NR.

Rollover of Exxon Valdez

Settlement Income 

If you are a qualified taxpayer (defined next) and you received qualified settlement income (defined below), you 

can contribute all or part of the amount received to an eligible retirement plan which includes a traditional IRA. The 

amount contributed cannot exceed $100,000 (reduced by 

the amount of qualified settlement income contributed to 

an eligible retirement plan in prior tax years) or the amount 

of qualified settlement income received during the tax 

year. Contributions for the year can be made until the due 

date for filing your return, not including extensions.

Qualified settlement income that you contribute to a traditional IRA will be treated as having been rolled over in a 

direct trustee-to-trustee transfer within 60 days of the distribution. The amount contributed is not included in your 

income at the time of the contributions and is not considered to be investment in the contract. Also, the 1-year 

waiting period between rollovers does not apply.

Qualified taxpayer. You are a qualified taxpayer if you 

are:

A plaintiff in the civil action In re Exxon Valdez, No. 

89-095-CV (HRH) (Consolidated) (D.Alaska), or

The beneficiary of the estate of a plaintiff who acquired the right to receive qualified settlement income 

and who is the spouse or immediate relative of that 

plaintiff.

Qualified settlement income. Qualified settlement income is any interest and punitive damage awards which 

are:

Otherwise includible in income, and

Received in connection with the civil action In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) 

(D.Alaska) (whether pre- or post-judgment and 

whether related to a settlement or judgment).

Qualified settlement income can be received as periodic 

payments or as a lump sum. See Miscellaneous Income in 

Publication 525, Taxable and Nontaxable Income, for information on how to report qualified settlement income.

Transfers Incident To Divorce

If an interest in a traditional IRA is transferred from your 

spouse or former spouse to you by a divorce or separate 

maintenance decree or a written document related to such 

a decree, the interest in the IRA, starting from the date of 

the transfer, is treated as your IRA. The transfer is tax 

free. For information about transfers of interests in employer plans, see Distributions under divorce or similar 

proceedings (alternate payees) under Rollover From Employer's Plan Into an IRA, earlier.

Transfer methods. There are two commonly used methods of transferring IRA assets to a spouse or former 

spouse. The methods are:

Changing the name on the IRA, and

Making a direct transfer of IRA assets.

Changing the name on the IRA. If all the assets are 

to be transferred, you can make the transfer by changing 

the name on the IRA from your name to the name of your 

spouse or former spouse.

Direct transfer. Under this method, you direct the 

trustee of the traditional IRA to transfer the affected assets 

directly to the trustee of a new or existing traditional IRA 

set up in the name of your spouse or former spouse.

If your spouse or former spouse is allowed to keep his 

or her portion of the IRA assets in your existing IRA, you 

can direct the trustee to transfer the assets you are permitted to keep directly to a new or existing traditional IRA 

set up in your name. The name on the IRA containing your 

spouse's or former spouse's portion of the assets would 

then be changed to show his or her ownership.

If the transfer results in a change in the basis of 

the traditional IRA of either spouse, both spouses 

must file Form 8606 and follow the directions in 

the instructions for that form.

Converting From Any Traditional IRA 

Into a Roth IRA

Allowable conversions. You can withdraw all or part of 

the assets from a traditional IRA and reinvest them (within 

60 days) in a Roth IRA. The amount that you withdraw and 

timely contribute (convert) to the Roth IRA is called a conversion contribution. If properly (and timely) rolled over, 

the 10% additional tax on early distributions will not apply. 

CAUTION

!

Chapter 1 Traditional IRAs Page 29
However, a part or all of the distribution from your traditional IRA may be included in gross income and subjected 

to ordinary income tax.

You must roll over into the Roth IRA the same property 

you received from the traditional IRA. You can roll over 

part of the withdrawal into a Roth IRA and keep the rest of 

it. The amount you keep will generally be taxable (except 

for the part that is a return of nondeductible contributions) 

and may be subject to the 10% additional tax on early distributions. See When Can You Withdraw or Use Assets, 

later, for more information on distributions from traditional 

IRAs and Early Distributions, later, for more information on 

the tax on early distributions.

Periodic distributions. If you started taking substantially equal periodic payments from a traditional IRA, you 

can convert the amounts in the traditional IRA to a Roth 

IRA and then continue the periodic payments. The 10% 

additional tax on early distributions will not apply even if 

the distributions are not qualified distributions (as long as 

they are part of a series of substantially equal periodic 

payments).

Required distributions. You cannot convert amounts 

that must be distributed from your traditional IRA for a particular year (including the calendar year in which you 

reach age 701

2) under the required distribution rules (discussed later in this chapter).

Income. You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth 

IRA. These amounts are normally included in income on 

your return for the year that you converted them from a 

traditional IRA to a Roth IRA.

You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, 

as discussed under Are Distributions Taxable, later in this 

chapter.

If you must include any amount in your gross income, you may have to increase your withholding 

or make estimated tax payments. See Publication 

505, Tax Withholding and Estimated Tax.

Recharacterizations

You may be able to treat a contribution made to one type 

of IRA as having been made to a different type of IRA. 

This is called recharacterizing the contribution.

To recharacterize a contribution, you generally must 

have the contribution transferred from the first IRA (the 

one to which it was made) to the second IRA in a 

trustee-to-trustee transfer. If the transfer is made by the 

due date (including extensions) for your tax return for the 

tax year during which the contribution was made, you can 

elect to treat the contribution as having been originally 

made to the second IRA instead of to the first IRA. If you 

CAUTION

!

recharacterize your contribution, you must do all three of 

the following.

Include in the transfer any net income allocable to the 

contribution. If there was a loss, the net income you 

must transfer may be a negative amount.

Report the recharacterization on your tax return for the 

year during which the contribution was made.

Treat the contribution as having been made to the 

second IRA on the date that it was actually made to 

the first IRA.

No deduction allowed. You cannot deduct the contribution to the first IRA. Any net income you transfer with the 

recharacterized contribution is treated as earned in the 

second IRA. The contribution will not be treated as having 

been made to the second IRA to the extent any deduction 

was allowed for the contribution to the first IRA.

Conversion by rollover from traditional to Roth IRA.

For recharacterization purposes, if you receive a distribution from a traditional IRA in one tax year and roll it over 

into a Roth IRA in the next year, but still within 60 days of 

the distribution from the traditional IRA, treat it as a contribution to the Roth IRA in the year of the distribution from 

the traditional IRA.

Effect of previous tax­free transfers. If an amount has 

been moved from one IRA to another in a tax-free transfer, such as a rollover, you generally cannot recharacterize the amount that was transferred. However, see Traditional IRA mistakenly moved to SIMPLE IRA below.

Recharacterizing to a SEP IRA or SIMPLE IRA.

Roth IRA conversion contributions from a SEP IRA or 

SIMPLE IRA can be recharacterized to a SEP IRA or SIMPLE IRA (including the original SEP IRA or SIMPLE IRA).

Traditional IRA mistakenly moved to SIMPLE IRA.

If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize 

the amount as a contribution to another traditional IRA.

Recharacterizing excess contributions. You can recharacterize only actual contributions. If you are applying 

excess contributions for prior years as current contributions, you can recharacterize them only if the recharacterization would still be timely with respect to the tax year for 

which the applied contributions were actually made.

Example. You contributed more than you were entitled 

to in 2013. You cannot recharacterize the excess contributions you made in 2013 after April 15, 2014, because 

contributions after that date are no longer timely for 2013.

Recharacterizing employer contributions. You cannot 

recharacterize employer contributions (including elective 

deferrals) under a SEP or SIMPLE plan as contributions to 

another IRA. SEPs are discussed in chapter 2 of Publication 560. SIMPLE plans are discussed in chapter 3.

Page 30 Chapter 1 Traditional IRAs
Recharacterization not counted as rollover. The recharacterization of a contribution is not treated as a rollover for purposes of the 1-year waiting period described 

earlier in this chapter under Rollover From One IRA Into 

Another. This is true even if the contribution would have 

been treated as a rollover contribution by the second IRA 

if it had been made directly to the second IRA rather than 

as a result of a recharacterization of a contribution to the 

first IRA.

Reconversions

You cannot convert and reconvert an amount during the 

same tax year or, if later, during the 30-day period following a recharacterization. If you reconvert during either of 

these periods, it will be a failed conversion.

Example. If you convert an amount from a traditional 

IRA to a Roth IRA and then transfer that amount back to a 

traditional IRA in a recharacterization in the same year, 

you may not reconvert that amount from the traditional 

IRA to a Roth IRA before:

The beginning of the year following the year in which 

the amount was converted to a Roth IRA or, if later,

The end of the 30-day period beginning on the day on 

which you transfer the amount from the Roth IRA back 

to a traditional IRA in a recharacterization.

How Do You Recharacterize a Contribution?

To recharacterize a contribution, you must notify both the 

trustee of the first IRA (the one to which the contribution 

was actually made) and the trustee of the second IRA (the 

one to which the contribution is being moved) that you 

have elected to treat the contribution as having been 

made to the second IRA rather than the first. You must 

make the notifications by the date of the transfer. Only one 

notification is required if both IRAs are maintained by the 

same trustee. The notification(s) must include all of the 

following information.

The type and amount of the contribution to the first 

IRA that is to be recharacterized.

The date on which the contribution was made to the 

first IRA and the year for which it was made.

A direction to the trustee of the first IRA to transfer in a 

trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA.

The name of the trustee of the first IRA and the name 

of the trustee of the second IRA.

Any additional information needed to make the transfer.

In most cases, the net income you must transfer is determined by your IRA trustee or custodian. If you need to 

determine the applicable net income on IRA contributions 

made after 2013 that are recharacterized, use Worksheet 

1-3 above. See Regulations section 1.408A-5 for more information.

Example. On April 1, 2014, when her Roth IRA is 

worth $80,000, Allison makes a $160,000 conversion contribution to the Roth IRA. Subsequently, Allison requests 

that the $160,000 be recharacterized to a traditional IRA. 

Pursuant to this request, on April 1, 2015, when the IRA is 

worth $225,000, the Roth IRA trustee transfers to a traditional IRA the $160,000 plus allocable net income. No 

other contributions have been made to the Roth IRA and 

no distributions have been made.

The adjusted opening balance is $240,000 ($80,000 + 

$160,000) and the adjusted closing balance is $225,000. 

Thus the net income allocable to the $160,000 is 

($10,000). See lines 1 through 6 of Worksheet 1-3. Example—Illustrated, later, for the calculation. Therefore, in order to recharacterize the April 1, 2014, $160,000 conversion contribution on April 1, 2015, the Roth IRA trustee 

must transfer from Allison's Roth IRA to her traditional IRA 

Determining the Amount of Net Income Due 

To an IRA Contribution and Total Amount To 

Be Recharacterized 

Worksheet 1-3.

Keep for Your Records

1. Enter the amount of your IRA contribution for 2014 to be recharacterized ................ 1.

2. Enter the fair market value of the IRA immediately prior to the recharacterization (include any 

distributions, transfers, or recharacterization made while the contribution was in the 

account) ..................................................................... 2.

3. Enter the fair market value of the IRA immediately prior to the time the contribution being 

recharacterized was made, including the amount of such contribution and any other 

contributions, transfers, or recharacterizations made while the contribution was in the 

account ...................................................................... 3.

4. Subtract line 3 from line 2 ....................................................... 4.

5. Divide line 4 by line 3. Enter the result as a decimal (rounded to at least three places) ...... 5.

6. Multiply line 1 by line 5. This is the net income attributable to the contribution to be 

recharacterized ............................................................... 6.

7. Add lines 1 and 6. This is the amount of the IRA contribution plus the net income attributable 

to it to be recharacterized ....................................................... 7.

Chapter 1 Traditional IRAs Page 31
$150,000 ($160,000 – $10,000). This is shown on line 7 of 

Worksheet 1-3. Example—Illustrated, later.

Timing. The election to recharacterize and the transfer 

must both take place on or before the due date (including 

extensions) for filing your tax return for the tax year for 

which the contribution was made to the first IRA.

Extension. Ordinarily you must choose to recharacterize a contribution by the due date of the return or the due 

date plus extensions. However, if you miss this deadline, 

you can still recharacterize a contribution if:

Your return was timely filed for the year the choice 

should have been made, and

You take appropriate corrective action within 6 months 

from the due date of your return excluding extensions. 

For returns due April 15, 2014, this period ends on 

October 15, 2014. When the date for doing any act for 

tax purposes falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business 

day.

Appropriate corrective action consists of:

Notifying the trustee(s) of your intent to recharacterize,

Providing the trustee with all necessary information, 

and

Having the trustee transfer the contribution.

Once this is done, you must amend your return to show 

the recharacterization. You have until the regular due date 

for amending a return to do this. Report the recharacterization on the amended return and write “Filed pursuant to 

section 301.9100-2” on the return. File the amended return at the same address you filed the original return.

Decedent. The election to recharacterize can be 

made on behalf of a deceased IRA owner by the executor, 

administrator, or other person responsible for filing the decedent's final income tax return.

Election cannot be changed. After the transfer has 

taken place, you cannot change your election to recharacterize.

Same trustee. Recharacterizations made with the same 

trustee can be made by redesignating the first IRA as the 

second IRA, rather than transferring the account balance.

Reporting a Recharacterization

If you elect to recharacterize a contribution to one IRA as 

a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 

and its instructions. You must treat the contribution as 

having been made to the second IRA.

Example. On June 1, 2013, Christine properly and 

timely converted her traditional IRA to a Roth IRA. In December, Christine decided to recharacterize the conversion and move the funds to a traditional IRA. In January 

2014, to make the necessary adjustment to remove the 

conversion, Christine opened a traditional IRA with the 

same trustee. Also in January 2014, she instructed the 

trustee of the Roth IRA to make a trustee-to-trustee transfer of the conversion contribution made to the Roth IRA 

(including net income allocable to it since the conversion) 

to the new traditional IRA. She also notified the trustee 

that she was electing to recharacterize the contribution to 

the Roth IRA and treat it as if it had been contributed to 

the new traditional IRA. Because of the recharacterization, 

Christine has no taxable income from the conversion to 

report for 2013, and the resulting rollover to a traditional 

IRA is not treated as a rollover for purposes of the 

one-rollover-per-year rule.

More than one IRA. If you have more than one IRA, figure the amount to be recharacterized only on the account 

from which you withdraw the contribution.

When Can You Withdraw or 

Use Assets?

You can withdraw or use your traditional IRA assets at any 

time. However, a 10% additional tax generally applies if 

you withdraw or use IRA assets before you are age 591

2. 

Worksheet 1-3. Example—Illustrated Keep for Your Records

1. Enter the amount of your IRA contribution for 2014 to be recharacterized ................ 1. 160,000

2. Enter the fair market value of the IRA immediately prior to the recharacterization (include any 

distributions, transfers, or recharacterization made while the contribution was in the 

account) ..................................................................... 2. 225,000

3. Enter the fair market value of the IRA immediately prior to the time the contribution being 

recharacterized was made, including the amount of such contribution and any other 

contributions, transfers, or recharacterizations made while the contribution was in the 

account ...................................................................... 3. 240,000

4. Subtract line 3 from line 2 ....................................................... 4. (15,000)

5. Divide line 4 by line 3. Enter the result as a decimal (rounded to at least three places) ...... 5. (.0625)

6. Multiply line 1 by line 5. This is the net income attributable to the contribution to be 

recharacterized ............................................................... 6. (10,000)

7. Add lines 1 and 6. This is the amount of the IRA contribution plus the net income attributable 

to it to be recharacterized ....................................................... 7. 150,000

Page 32 Chapter 1 Traditional IRAs
This is explained under Age 591

2 Rule under Early Distributions, later.

You generally can make a tax-free withdrawal of contributions if you do it before the due date for filing your tax 

return for the year in which you made them. This means 

that, even if you are under age 591

2, the 10% additional 

tax may not apply. These withdrawals are explained next.

Contributions Returned

Before Due Date of Return

If you made IRA contributions in 2013, you can withdraw 

them tax free by the due date of your return. If you have 

an extension of time to file your return, you can withdraw 

them tax free by the extended due date. You can do this if, 

for each contribution you withdraw, both of the following 

conditions apply.

You did not take a deduction for the contribution.

You withdraw any interest or other income earned on 

the contribution. You can take into account any loss 

on the contribution while it was in the IRA when calculating the amount that must be withdrawn. If there was 

a loss, the net income earned on the contribution may 

be a negative amount.

Note. If you timely filed your 2013 tax return without 

withdrawing a contribution that you made in 2013, you can 

still have the contribution returned to you within 6 months 

of the due date of your 2013 tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Report any 

related earnings on the amended return and include an 

explanation of the withdrawal. Make any other necessary 

changes on the amended return (for example, if you reported the contributions as excess contributions on your 

original return, include an amended Form 5329 reflecting 

that the withdrawn contributions are no longer treated as 

having been contributed).

In most cases, the net income you must withdraw is determined by the IRA trustee or custodian. If you need to 

determine the applicable net income on IRA contributions 

made after 2013 that are returned to you, use Worksheet 

1-4 above. See Regulations section 1.408-11 for more information.

Example. On May 2, 2014, when her IRA is worth 

$4,800, Cathy makes a $1,600 regular contribution to her 

IRA. Cathy requests that $400 of the May 2, 2014 contribution be returned to her. On February 2, 2015, when the 

IRA is worth $7,600, the IRA trustee distributes to Cathy 

the $400 plus net income attributable to the contribution. 

No other contributions have been made to the IRA for 

2014 and no distributions have been made.

The adjusted opening balance is $6,400 ($4,800 + 

$1,600) and the adjusted closing balance is $7,600. The 

net income due to the May 2, 2014, contribution is $75 

($400 x ($7,600 – $6,400) ÷ $6,400). Therefore, the total 

to be distributed on February 2, 2015, is $475. This is 

shown on Worksheet 1-4. Example—Illustrated, later.

Last­in first­out rule. If you made more than one regular 

contribution for the year, your last contribution is considered to be the one that is returned to you first.

Earnings Includible in Income

You must include in income any earnings on the contributions you withdraw. Include the earnings in income for the 

year in which you made the contributions, not the year in 

which you withdraw them.

Generally, except for any part of a withdrawal that 

is a return of nondeductible contributions (basis), 

any withdrawal of your contributions after the due 

date (or extended due date) of your return will be treated 

as a taxable distribution. Excess contributions can also be 

recovered tax free as discussed under What Acts Result 

in Penalties or Additional Taxes, later.

Early Distributions Tax

The 10% additional tax on distributions made before you 

reach age 591

2 does not apply to these tax-free 

CAUTION

!

Determining the Amount of Net Income Due 

To an IRA Contribution and Total Amount To 

Be Withdrawn From the IRA

Worksheet 1-4.

Keep for Your Records

1. Enter the amount of your IRA contribution for 2014 to be returned to you ................. 1.

2. Enter the fair market value of the IRA immediately prior to the removal of the contribution, 

plus the amount of any distributions, transfers, and recharacterizations made while the 

contribution was in the IRA ...................................................... 2.

3. Enter the fair market value of the IRA immediately before the contribution was made, plus the 

amount of such contribution and any other contributions, transfers, and recharacterizations 

made while the contribution was in the IRA ......................................... 3.

4. Subtract line 3 from line 2 ....................................................... 4.

5. Divide line 4 by line 3. Enter the result as a decimal (rounded to at least three places) ...... 5.

6. Multiply line 1 by line 5. This is the net income attributable to the contribution to be 

returned ...................................................................... 6.

7. Add lines 1 and 6. This is the amount of the IRA contribution plus the net income attributable 

to it to be returned to you ........................................................ 7.

Chapter 1 Traditional IRAs Page 33
withdrawals of your contributions. However, the distribution of interest or other income must be reported on Form 

5329 and, unless the distribution qualifies as an exception 

to the age 591

2 rule, it will be subject to this tax. See Early 

Distributions under What Acts Result in Penalties or Additional Taxes, later.

Excess Contributions Tax

If any part of these contributions is an excess contribution 

for 2012, it is subject to a 6% excise tax. You will not have 

to pay the 6% tax if any 2012 excess contribution was 

withdrawn by April 15, 2013 (plus extensions), and if any 

2013 excess contribution is withdrawn by April 15, 2014 

(plus extensions). See Excess Contributions under What 

Acts Result in Penalties or Additional Taxes, later.

You may be able to treat a contribution made to 

one type of IRA as having been made to a different type of IRA. This is called recharacterizing the 

contribution. See Recharacterizations, earlier, for more information. 

When Must You Withdraw

Assets? (Required Minimum 

Distributions)

You cannot keep funds in a traditional IRA indefinitely. 

Eventually they must be distributed. If there are no distributions, or if the distributions are not large enough, you 

may have to pay a 50% excise tax on the amount not distributed as required. See Excess Accumulations (Insufficient Distributions), later under What Acts Result in Penalties or Additional Taxes. The requirements for distributing 

IRA funds differ, depending on whether you are the IRA 

owner or the beneficiary of a decedent's IRA.

Required minimum distribution. The amount that must 

be distributed each year is referred to as the required minimum distribution.

TIP

Distributions not eligible for rollover. Amounts that 

must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment.

Note. A qualified charitable distribution will count towards your required minimum distribution. See Qualified 

charitable distributions under Are Distributions Taxable, 

later.

IRA Owners

If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of 

the year following the year in which you reach age 701

2. 

April 1 of the year following the year in which you reach 

age 701

2 is referred to as the required beginning date.

Distributions by the required beginning date. You 

must receive at least a minimum amount for each year 

starting with the year you reach age 701

2 (your 7012 year). 

If you do not (or did not) receive that minimum amount in 

your 701

2 year, then you must receive distributions for your 

701

2 year by April 1 of the next year.

If an IRA owner dies after reaching age 701

2, but before 

April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date.

Even if you begin receiving distributions before 

you reach age 701

2, you must begin calculating 

and receiving required minimum distributions by 

your required beginning date.

More than minimum received. If, in any year, you receive more than the required minimum distribution for that 

year, you will not receive credit for the additional amount 

when determining the minimum required distributions for 

future years. This does not mean that you do not reduce 

your IRA account balance. It means that if you receive 

more than your required minimum distribution in one year, 

you cannot treat the excess (the amount that is more than 

the required minimum distribution) as part of your required 

minimum distribution for any later year. However, any 

amount distributed in your 701

2 year will be credited 

CAUTION

!

Worksheet 1-4. Example—Illustrated Keep for Your Records

1. Enter the amount of your IRA contribution for 2014 to be returned to you ................. 1. 400

2. Enter the fair market value of the IRA immediately prior to the removal of the contribution, 

plus the amount of any distributions, transfers, and recharacterizations made while the 

contribution was in the IRA ...................................................... 2. 7,600

3. Enter the fair market value of the IRA immediately before the contribution was made, plus the 

amount of such contribution and any other contributions, transfers, and recharacterizations 

made while the contribution was in the IRA ......................................... 3. 6,400

4. Subtract line 3 from line 2 ....................................................... 4. 1,200

5. Divide line 4 by line 3. Enter the result as a decimal (rounded to at least three places) ...... 5. .1875

6. Multiply line 1 by line 5. This is the net income attributable to the contribution to be 

returned ...................................................................... 6. 75

7. Add lines 1 and 6. This is the amount of the IRA contribution plus the net income attributable 

to it to be returned to you ....................................................... 7. 475

Page 34 Chapter 1 Traditional IRAs
toward the amount that must be distributed by April 1 of 

the following year.

Distributions after the required beginning date. The 

required minimum distribution for any year after the year 

you turn 701

2 must be made by December 31 of that later 

year.

Example. You reach age 701

2 on August 20, 2013. For 

2013, you must receive the required minimum distribution 

from your IRA by April 1, 2014. You must receive the required minimum distribution for 2014 by December 31, 

2014.

If you do not receive your required minimum distribution for 2013 until 2014, both your 2013 and 

your 2014 distributions will be included in income 

on your 2014 return.

Distributions from individual retirement account. If 

you are the owner of a traditional IRA that is an individual 

retirement account, you or your trustee must figure the required minimum distribution for each year. See Figuring 

the Owner's Required Minimum Distribution below.

Distributions from individual retirement annuities. If 

your traditional IRA is an individual retirement annuity, 

special rules apply to figuring the required minimum distribution. For more information on rules for annuities, see 

Regulations section 1.401(a)(9)-6. These regulations can 

be read in many libraries, IRS offices, and online at 

IRS.gov.

Change in marital status. For purposes of figuring your 

required minimum distribution, your marital status is determined as of January 1 of each year. If your spouse is a 

beneficiary of your IRA on January 1, he or she remains a 

beneficiary for the entire year even if you get divorced or 

your spouse dies during the year. For purposes of determining your distribution period, a change in beneficiary is 

effective in the year following the year of death or divorce.

Change of beneficiary. If your spouse is the sole 

beneficiary of your IRA, and he or she dies before you, 

your spouse will not fail to be your sole beneficiary for the 

year that he or she died solely because someone other 

than your spouse is named a beneficiary for the rest of 

that year. However, if you get divorced during the year 

and change the beneficiary designation on the IRA during 

that same year, your former spouse will not be treated as 

the sole beneficiary for that year.

Figuring the Owner's Required Minimum 

Distribution

Figure your required minimum distribution for each year 

by dividing the IRA account balance (defined next) as of 

the close of business on December 31 of the preceding 

year by the applicable distribution period or life expectancy. Tables showing distribution periods and life expectancies are found in Appendix C and are discussed later.

CAUTION

!

IRA account balance. The IRA account balance is the 

amount in the IRA at the end of the year preceding the 

year for which the required minimum distribution is being 

figured.

Contributions. Contributions increase the account 

balance in the year they are made. If a contribution for last 

year is not made until after December 31 of last year, it increases the account balance for this year, but not for last 

year. Disregard contributions made after December 31 of 

last year in determining your required minimum distribution for this year.

Outstanding rollovers and recharacterizations. 

The IRA account balance is adjusted by outstanding rollovers and recharacterizations of Roth IRA conversions 

that are not in any account at the end of the preceding 

year.

For a rollover from a qualified plan or another IRA that 

was not in any account at the end of the preceding year, 

increase the account balance of the receiving IRA by the 

rollover amount valued as of the date of receipt.

If a conversion contribution is contributed to a Roth IRA 

and that amount (plus net income allocable to it) is transferred to another IRA in a subsequent year as a recharacterized contribution, increase the account balance of the 

receiving IRA by the recharacterized contribution (plus allocable net income) for the year in which the conversion 

occurred.

Distributions. Distributions reduce the account balance in the year they are made. A distribution for last year 

made after December 31 of last year reduces the account 

balance for this year, but not for last year. Disregard distributions made after December 31 of last year in determining your required minimum distribution for this year.

Example 1. Laura was born on October 1, 1942. She 

reaches age 701

2 in 2013. Her required beginning date is 

April 1, 2014. As of December 31, 2012, her IRA account 

balance was $26,500. No rollover or recharacterization 

amounts were outstanding. Using Table III in Appendix C, 

the applicable distribution period for someone her age 

(71) is 26.5 years. Her required minimum distribution for 

2013 is $1,000 ($26,500 ÷ 26.5). That amount is distributed to her on April 1, 2014.

Example 2. Joe, born October 1, 1942, reached 701

2

in 2013. His wife (his beneficiary) turned 56 in September 

2013. He must begin receiving distributions by April 1, 

2014. Joe's IRA account balance as of December 31, 

2012, is $30,100. Because Joe's wife is more than 10 

years younger than Joe and is the sole beneficiary of his 

IRA, Joe uses Table II in Appendix C. Based on their ages 

at year end (December 31, 2013), the joint life expectancy 

for Joe (age 71) and his wife (age 56) is 30.1 years. The 

required minimum distribution for 2013, Joe's first distribution year, is $1,000 ($30,100 ÷ 30.1). This amount is distributed to Joe on April 1, 2014.

Distribution period. This is the maximum number of 

years over which you are allowed to take distributions 

from the IRA. The period to use for 2013 is listed next to 

Chapter 1 Traditional IRAs Page 35
your age as of your birthday in 2013 in Table III in Appendix C.

Life expectancy. If you must use Table I, your life expectancy for 2014 is listed in the table next to your age as 

of your birthday in 2014. If you use Table II, your life expectancy is listed where the row or column containing 

your age as of your birthday in 2014 intersects with the 

row or column containing your spouse's age as of his or 

her birthday in 2014. Both Table I and Table II are in Appendix C.

Distributions during your lifetime. Required minimum 

distributions during your lifetime are based on a distribution period that generally is determined using Table III 

(Uniform Lifetime) in Appendix C. However, if the sole 

beneficiary of your IRA is your spouse who is more than 

10 years younger than you, see Sole beneficiary spouse 

who is more than 10 years younger below.

To figure the required minimum distribution for 2014, divide your account balance at the end of 2013 by the distribution period from the table. This is the distribution period 

listed next to your age (as of your birthday in 2014) in Table III in Appendix C, unless the sole beneficiary of your 

IRA is your spouse who is more than 10 years younger 

than you.

Example. You own a traditional IRA. Your account balance at the end of 2013 was $100,000. You are married 

and your spouse, who is the sole beneficiary of your IRA, 

is 6 years younger than you. You turn 75 years old in 

2014. You use Table III. Your distribution period is 22.9. 

Your required minimum distribution for 2014 would be 

$4,367 ($100,000 ÷ 22.9).

Sole beneficiary spouse who is more than 10 

years younger. If the sole beneficiary of your IRA is your 

spouse and your spouse is more than 10 years younger 

than you, use the life expectancy from Table II (Joint Life 

and Last Survivor Expectancy) in Appendix C.

The life expectancy to use is the joint life and last survivor expectancy listed where the row or column containing 

your age as of your birthday in 2014 intersects with the 

row or column containing your spouse's age as of his or 

her birthday in 2014.

You figure your required minimum distribution for 2014 

by dividing your account balance at the end of 2013 by the 

life expectancy from Table II (Joint Life and Last Survivor 

Expectancy) in Appendix C.

Example. You own a traditional IRA. Your account balance at the end of 2013 was $100,000. You are married 

and your spouse, who is the sole beneficiary of your IRA, 

is 11 years younger than you. You turn 75 in 2014 and 

your spouse turns 64. You use Table II. Your joint life and 

last survivor expectancy is 23.6. Your required minimum 

distribution for 2014 would be $4,237 ($100,000 ÷ 23.6).

Distributions in the year of the owner's death. The required minimum distribution for the year of the owner's 

death depends on whether the owner died before the required beginning date, defined earlier.

If the owner died before the required beginning date, 

there is no required minimum distribution in the year of the 

owner's death. For years after the year of the owner's 

death, see Owner Died Before Required Beginning Date, 

later, under IRA Beneficiaries.

If the owner died on or after the required beginning 

date, the IRA beneficiaries are responsible for figuring and 

distributing the owner's required minimum distribution in 

the year of death. The owner's required minimum distribution for the year of death generally is based on Table III 

(Uniform Lifetime) in Appendix C. However, if the sole 

beneficiary of the IRA is the owner's spouse who is more 

than 10 years younger than the owner, use the life expectancy from Table II (Joint Life and Last Survivor Expectancy).

Note. You figure the required minimum distribution for 

the year in which an IRA owner dies as if the owner lived 

for the entire year.

IRA Beneficiaries

The rules for determining required minimum distributions 

for beneficiaries depend on the following.

The beneficiary is the surviving spouse.

The beneficiary is an individual (other than the surviving spouse).

The beneficiary is not an individual (for example, the 

beneficiary is the owner's estate). (But see Trust as 

beneficiary, later, for a discussion about treating trust 

beneficiaries as designated beneficiaries.)

The IRA owner died before the required beginning 

date, or died on or after the required beginning date.

The following paragraphs explain the rules for required 

minimum distributions and beneficiaries.

If distributions to the beneficiary from an inherited 

traditional IRA are less than the required minimum distribution for the year, discussed in this 

chapter under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 

50% excise tax for that year on the amount not distributed 

as required. For details, see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties 

or Additional Taxes? later in this chapter.

Surviving spouse. If you are the surviving spouse who is 

the sole beneficiary of your deceased spouse's IRA, you 

may elect to be treated as the owner and not as the beneficiary. If you elect to be treated as the owner, you determine the required minimum distribution (if any) as if you 

were the owner beginning with the year you elect or are 

deemed to be the owner. For details, see Inherited from 

spouse under What if You Inherit an IRA, earlier in this 

chapter.

Note. If you become the owner in the year your deceased spouse died, do not determine the required minimum distribution for that year using your life; rather, you 

CAUTION

!

Page 36 Chapter 1 Traditional IRAs
must take the deceased owner's required minimum distribution for that year (to the extent it was not already distributed to the owner before his or her death).

You can never make a rollover contribution of a 

required minimum distribution. Any rollover contribution is subject to the 6% tax on excess contributions, as discussed in Rollover of required distributions 

not allowed, earlier.

For any year after the owner’s death, where a 

surviving spouse is the sole designated beneficiary of the account and he or she fails to take a 

required minimum distribution (if one is required) by December 31 under the rules discussed below for beneficiaries, he or she will be deemed the owner of the IRA. For 

details, see Inherited from spouse under What if You Inherit an IRA, earlier in this chapter.

Date the designated beneficiary is determined. Generally, the designated beneficiary is determined on September 30 of the calendar year following the calendar year 

of the IRA owner's death. In order to be a designated beneficiary, an individual must be a beneficiary as of the date 

of death. Any person who was a beneficiary on the date of 

the owner's death, but is not a beneficiary on September 

30 of the calendar year following the calendar year of the 

owner's death (because, for example, he or she disclaimed entitlement or received his or her entire benefit), 

will not be taken into account in determining the designated beneficiary. An individual may be designated as a 

beneficiary either by the terms of the plan or, if the plan 

permits, by affirmative election by the employee specifying the beneficiary.

Note. If a person who is a beneficiary as of the owner's 

date of death dies before September 30 of the year following the year of the owner's death without disclaiming entitlement to benefits, that individual, rather than his or her 

successor beneficiary, continues to be treated as a beneficiary for determining the distribution period.

For the exception to this rule, see Death of surviving 

spouse prior to date distributions begin, later.

Death of a beneficiary. In general, the beneficiaries of a 

deceased beneficiary must continue to take the required 

minimum distributions after the deceased beneficiary’s 

death, based on the distribution schedule established by 

that beneficiary under the rules in the following paragraphs. The beneficiaries of a deceased beneficiary do 

not calculate required minimum distributions using their 

own life expectancies.

For the exception to this rule, see Death of surviving 

spouse prior to date distributions begin, later.

More than one beneficiary. If an IRA has more than one 

beneficiary or a trust is named as beneficiary, see Miscellaneous Rules for Required Minimum Distributions, later.

CAUTION

!

TIP

Owner Died On or After Required Beginning 

Date

If the owner died on or after his or her required beginning 

date (defined earlier), and you are the designated beneficiary, you must base required minimum distributions for 

years after the year of the owner's death on the longer of:

Your single life expectancy shown on Table I in Appendix C as determined under Beneficiary an individual, later, or

The owner's life expectancy as determined under 

Death on or after required beginning date, under Beneficiary not an individual, later.

Surviving spouse is sole designated beneficiary. If 

the owner died on or after his or her required beginning 

date and his or her spouse is the sole designated beneficiary, the life expectancy the spouse must use to figure 

his or her required minimum distribution may change in a 

future distribution year. This change will apply where the 

spouse is older than the deceased owner or the spouse 

treats the IRA as his or her own.

Owner Died Before Required Beginning 

Date

If the owner died before his or her required beginning date 

(defined earlier), and you are the designated beneficiary, 

you generally must base required minimum distributions 

for years after the year of the owner's death using your 

single life expectancy shown on Table I in Appendix C as 

determined under Beneficiary an individual, later.

See 5­year rule, later, for situations where an individual 

designated beneficiary may be required to take the entire 

account by the end of the fifth year following the year of 

the owner's death.

If the owner's beneficiary is not an individual (for example, if the beneficiary is the owner's estate), the 5-year rule 

(discussed later) applies.

Special rules for surviving spouse. If the owner died 

before his or her required beginning date and the surviving spouse is the sole designated beneficiary, the following rules apply.

Year of first required distribution. If the owner died 

before the year in which he or she reached age 701

2, distributions to the spouse do not need to begin until the year 

in which the owner would have reached age 701

2.

Death of surviving spouse prior to date distributions begin. If the surviving spouse dies before December 31 of the year he or she must begin receiving required 

minimum distributions, the surviving spouse will be treated 

as if he or she were the owner of the IRA.

This rule does not apply to the surviving spouse of a 

surviving spouse.

Example 1. Your spouse died in 2011, at age 651

2. 

You are the sole designated beneficiary of your spouse’s 

Chapter 1 Traditional IRAs Page 37
traditional IRA. You do not need to take any required minimum distribution until December 31 of 2016, the year your 

spouse would have reached age 701

2. If you die prior to 

that date, you will be treated as the owner of the IRA for 

purposes of determining the required distributions to your 

beneficiaries. For example, if you die in 2013, your beneficiaries will not have any required minimum distribution for 

2013 (because you, treated as the owner, died prior to 

your required beginning date). They must start taking distributions under the general rules for an owner who died 

prior to the required beginning date.

Example 2. Same as Example 1, except your sole 

beneficiary upon your death in 2013 is your surviving 

spouse. Your surviving spouse cannot wait until the year 

you would have turned 701

2 to take distributions using his 

or her life expectancy. Also, if your surviving spouse dies 

prior to the date he or she is required to take a distribution, 

he or she is not treated as the owner of the account. Just 

like any other individual beneficiary of an owner who dies 

before the required beginning date, your surviving spouse 

must start taking distributions in 2014 based on his or her 

life expectancy (or elect to fully distribute the account under the 5-year rule by the end of 2018).

5­year rule. The 5-year rule requires the IRA beneficiaries to withdraw 100% of the IRA by December 31 of the 

year containing the fifth anniversary of the owner’s death. 

For example, if the owner died in 2013, the beneficiary 

would have to fully distribute the plan by December 31, 

2018. The beneficiary is allowed, but not required, to take 

distributions prior to that date. The 5-year rule never applies if the owner died on or after his or her required beginning date.

Individual designated beneficiaries. The terms of 

most IRA plans require individual designated beneficiaries 

to take required minimum distributions using the life expectancy rules (explained earlier) unless such beneficiaries elect to take distributions using the 5-year rule. The 

deadline for making this election is December 31 of the 

year the beneficiary must take the first required distribution using his or her life expectancy (or December 31 of 

the year containing the fifth anniversary of the owner's 

death, if earlier).

Beneficiary not an individual. The 5-year rule applies in all cases where there is no individual designated 

beneficiary by September 30 of the year following the year 

of the owner’s death or where any beneficiary is not an individual (for example, the owner named his or her estate 

as the beneficiary).

Review the IRA plan documents or consult with 

the IRA custodian or trustee for specifics on the 

5­year rule provisions of any particular plan.

If the 5­year rule applies, the amount remaining in 

the IRA, if any, after December 31 of the year 

containing the fifth anniversary of the owner's 

death is subject to the 50% excise tax detailed in Excess 

Accumulations (Insufficient Distributions), later.

TIP

CAUTION

!

Figuring the Beneficiary's Required 

Minimum Distribution

How you figure the required minimum distribution depends on whether the beneficiary is an individual or some 

other entity, such as a trust or estate.

Beneficiary an individual. If the beneficiary is an individual, to figure the required minimum distribution for 

2014, divide the account balance at the end of 2013 by 

the appropriate life expectancy from Table I (Single Life 

Expectancy) in Appendix C. Determine the appropriate life 

expectancy as follows.

Spouse as sole designated beneficiary. Use the life 

expectancy listed in the table next to the spouse's age (as 

of the spouse's birthday in 2014). Use this life expectancy 

even if the spouse died in 2014.

If the spouse died in 2013 or a prior year, use the life 

expectancy listed in the table next to the spouse’s age as 

of his or her birthday in the year he or she died. Reduce 

the life expectancy by one for each year since the year following the spouse’s death.

You cannot make a rollover contribution of your 

required minimum distributions in years after the 

owner's death. Such contribution is subject to the 

6% tax on excess contributions, as discussed in Rollover 

of required distributions not allowed, earlier.

Other designated beneficiary. Use the life expectancy listed in the table next to the beneficiary's age as of 

his or her birthday in the year following the year of the 

owner's death. Reduce the life expectancy by one for 

each year since the year following the owner's death. As 

discussed in Death of a beneficiary, earlier, if the designated beneficiary dies before his or her portion of the account is fully distributed, continue to use the designated 

beneficiary's remaining life expectancy to determine the 

distribution period; do not use the life expectancy of any 

subsequent beneficiary.

Example. Your father died in 2013. You are the designated beneficiary of your father's traditional IRA. You are 

53 years old in 2014, which is the year following your father's death. You use Table I and see that your life expectancy in 2014 is 31.4. If the IRA was worth $100,000 at the 

end of 2013, your required minimum distribution for 2014 

would be $3,185 ($100,000 ÷ 31.4). If the value of the IRA 

at the end of 2014 was again $100,000, your required 

minimum distribution for 2015 would be $3,289 ($100,000 

÷ 30.4 (31.4 reduced by 1, which is the number of years 

following the year after your father's death in 2013)).

Beneficiary not an individual. If the beneficiary is not 

an individual, determine the required minimum distribution 

for 2014 as follows.

Death on or after required beginning date. Divide 

the account balance at the end of 2013 by the appropriate 

life expectancy from Table I (Single Life Expectancy) in 

Appendix C. Use the life expectancy listed next to the 

owner's age as of his or her birthday in the year of death. 

CAUTION

!

Page 38 Chapter 1 Traditional IRAs
Reduce the life expectancy by one for each year after the 

year of death. (Note. Also figure the required minimum 

distribution for an individual beneficiary using this method 

if it results in a longer life expectancy where the owner 

died on or after the required beginning date.)

Death before required beginning date. The 5-year 

rule (discussed earlier) applies. The entire account must 

be distributed by the end of the fifth year following the year 

of the owner's death. No distribution is required for any 

year before that fifth year.

Note. The required beginning date was defined earlier 

under Distributions by the required beginning date.

Example. The owner died in 2013 at the age of 80. 

The owner's traditional IRA went to his estate. The account balance at the end of 2013 was $100,000. In 2014, 

the required minimum distribution would be $10,870 

($100,000 ÷ 9.2). (The owner's life expectancy in the year 

of death, 10.2, reduced by one.) If the owner had died in 

2013 at the age of 70, the entire account would have to be 

distributed by the end of 2018. See Death before required 

beginning date under Beneficiary not an individual above.

Which Table Do You Use

To Determine Your

Required Minimum Distribution?

There are three different life expectancy tables. The tables are found in Appendix C of this publication. You use 

only one of them to determine your required minimum distribution for each traditional IRA. Determine which one to 

use as follows.

Reminder. In using the tables for lifetime distributions, 

marital status is determined as of January 1 each year. Divorce or death after January 1 is generally disregarded 

until the next year. However, if you divorce and change 

the beneficiary designation in the same year, your former 

spouse cannot be considered your sole beneficiary for 

that year.

Table I (Single Life Expectancy). Use Table I for years 

after the year of the owner's death if either of the following 

applies.

You are an individual and a designated beneficiary, 

but not the owner's surviving spouse and sole designated beneficiary.

The beneficiary is not an individual and the owner died 

on or after the required beginning date, defined earlier.

Surviving spouse. If you are the owner's surviving 

spouse and sole designated beneficiary, you will also use 

Table I for your required minimum distributions. However, 

if the owner had not reached age 701

2 when he or she 

died, and you do not elect to be treated as the owner of 

the IRA, you do not have to take distributions until the year 

in which the owner would have reached age 701

2.

Table II (Joint Life and Last Survivor Expectancy). 

Use Table II if you are the IRA owner and your spouse is 

both your sole designated beneficiary and more than 10 

years younger than you.

Note. Use this table in the year of the owner's death if 

the owner died after the required beginning date and this 

is the table that would have been used had he or she not 

died.

Table III (Uniform Lifetime). Use Table III if you are the 

IRA owner and your spouse is not both the sole designated beneficiary of your IRA and more than 10 years 

younger than you.

Note. Use this table in the year of the owner's death if 

the owner died after the required beginning date and this 

is the table that would have been used had he or she not 

died.

No table. Do not use any of the tables if the 5-year rule 

(discussed earlier) applies.

What Age(s) Do You Use With the 

Table(s)?

The age or ages to use with each table are explained below.

Table I (Single Life Expectancy). If you are a designated beneficiary figuring your first distribution, use your age 

as of your birthday in the year distributions must begin. 

This is usually the calendar year immediately following the 

calendar year of the owner's death. After the first distribution year, reduce your life expectancy by one for each 

subsequent year. If you are the owner's surviving spouse 

and the sole designated beneficiary, this is generally the 

year in which the owner would have reached age 701

2. After the first distribution year, use your age as of your birthday in each subsequent year.

Example 1. You are the owner's designated beneficiary figuring your first required minimum distribution. Distributions must begin in 2014. You become 57 years old in 

2014. You use Table I. Your distribution period for 2015 is 

26.9 (27.9 − 1) years. Your distribution period for 2016 is 

25.9 (27.9 − 2). Note that the life expectancy was reduced 

by one for each year after the first distribution year, which 

was 2014.

Example 2. You are the owner's surviving spouse and 

the sole designated beneficiary. The owner would have 

turned age 701

2 in 2014. Distributions begin in 2014. You 

become 69 years old in 2014. You use Table 1. Your distribution period for 2014 is 17.8. For 2015, when you are 

70 years old, your distribution period is 17.0. For 2016, 

when you are 71 years old, your distribution period is 

16.3.

Owner's life expectancy. In two cases where the 

owner dies on or after the required beginning date, you 

need to use the owner's life expectancy. First, you need to 

use it when the owner dies on or after the required 

Chapter 1 Traditional IRAs Page 39
beginning date and there is no designated beneficiary as 

of September 30 of the year following the year of the owner's death. In this case, use the owner's life expectancy for 

his or her age as of the owner's birthday in the year of 

death and reduce it by one for each subsequent year. 

Second, use the owner’s life expectancy in the year of 

death (reduced by one for each subsequent year) if it results in a longer distribution period than using your life expectancy as detailed in Table I (Single Life Expectancy) 

above.

Table II (Joint Life and Last Survivor Expectancy). 

For your first distribution by the required beginning date, 

use your age and the age of your designated beneficiary 

as of your birthdays in the year you become age 701

2. 

Your combined life expectancy is at the intersection of 

your ages.

If you are figuring your required minimum distribution 

for 2014, use your ages as of your birthdays in 2014. For 

each subsequent year, use your and your spouse's ages 

as of your birthdays in the subsequent year.

Table III (Uniform Lifetime). For your first distribution by 

your required beginning date, use your age as of your 

birthday in the year you become age 701

2.

If you are figuring your required minimum distribution 

for 2014, use your age as of your birthday in 2014. For 

each subsequent year, use your age as of your birthday in 

the subsequent year.

Miscellaneous Rules for

Required Minimum Distributions

The following rules may apply to you.

Installments allowed. The yearly required minimum distribution can be taken in a series of installments (monthly, 

quarterly, etc.) as long as the total distributions for the 

year are at least as much as the minimum required 

amount.

More than one IRA. If you have more than one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you can total 

these minimum amounts and take the total from any one 

or more of the IRAs.

Example. Sara, born August 1, 1942, became 701

2 on 

February 1, 2013. She has two traditional IRAs. She must 

begin receiving her IRA distributions by April 1, 2014. On 

December 31, 2012, Sara's account balance from IRA A 

was $10,000; her account balance from IRA B was 

$20,000. Sara's brother, age 64 as of his birthday in 2013, 

is the beneficiary of IRA A. Her husband, age 78 as of his 

birthday in 2013, is the beneficiary of IRA B.

Sara's required minimum distribution from IRA A is 

$377 ($10,000 ÷ 26.5 (the distribution period for age 71 

per Table III)). The amount of the required minimum distribution from IRA B is $755 ($20,000 ÷ 26.5). The amount 

that must be withdrawn by Sara from her IRA accounts by 

April 1, 2014, is $1,132 ($377 + $755).

More than minimum received. If, in any year, you receive more than the required minimum amount for that 

year, you will not receive credit for the additional amount 

when determining the minimum required amounts for future years. This does not mean that you do not reduce 

your IRA account balance. It means that if you receive 

more than your required minimum distribution in one year, 

you cannot treat the excess (the amount that is more than 

the required minimum distribution) as part of your required 

minimum distribution for any later year. However, any 

amount distributed in your 701

2 year will be credited toward the amount that must be distributed by April 1 of the 

following year.

Example. Justin became 701

2 on December 15, 2013. 

Justin's IRA account balance on December 31, 2012, was 

$38,400. He figured his required minimum distribution for 

2013 was $1,401 ($38,400 ÷ 27.4 (the distribution period 

for age 70 per Table III)). By December 31, 2013, he had 

actually received distributions totaling $3,600, $2,199 

more than was required. Justin cannot use that $2,199 to 

reduce the amount he is required to withdraw for 2014, 

but his IRA account balance is reduced by the full $3,600 

to figure his required minimum distribution for 2014. Justin's reduced IRA account balance on December 31, 

2013, was $34,800. Justin figured his required minimum 

distribution for 2014 is $1,313 ($34,800 ÷ 26.5 (the distribution period for age 71 per Table III)). During 2014, he 

must receive distributions of at least that amount.

Multiple individual beneficiaries. If as of September 30 

of the year following the year in which the owner dies 

there is more than one beneficiary, the beneficiary with 

the shortest life expectancy will be the designated beneficiary if both of the following apply.

All of the beneficiaries are individuals, and

The account or benefit has not been divided into separate accounts or shares for each beneficiary.

Separate accounts. A single IRA can be split into 

separate accounts or shares for each beneficiary. These 

separate accounts or shares can be established at any 

time, either before or after the owner's required beginning 

date. Generally, these separate accounts or shares are 

combined for purposes of determining the minimum required distribution. However, these separate accounts or 

shares will not be combined for required minimum distribution purposes after the death of the IRA owner if the 

separate accounts or shares are established by the end of 

the year following the year of the IRA owner's death.

The separate account rules cannot be used by beneficiaries of a trust.

Trust as beneficiary. A trust cannot be a designated 

beneficiary even if it is a named beneficiary. However, the 

beneficiaries of a trust will be treated as having been designated beneficiaries for purposes of determining required 

minimum distributions after the owner’s death (or after the 

death of the owner’s surviving spouse described in Death 

of surviving spouse prior to date distributions begin, earlier) if all of the following are true:

Page 40 Chapter 1 Traditional IRAs
1. The trust is a valid trust under state law, or would be 

but for the fact that there is no corpus.

2. The trust is irrevocable or became, by its terms, irrevocable upon the owner's death.

3. The beneficiaries of the trust who are beneficiaries 

with respect to the trust's interest in the owner's benefit are identifiable from the trust instrument.

4. The trustee of the trust provides the IRA custodian or 

trustee with the documentation required by that custodian or trustee. The trustee of the trust should contact 

the IRA custodian or trustee for details on the documentation required for a specific plan.

The deadline for the trustee to provide the beneficiary 

documentation to the IRA custodian or trustee is October 

31 of the year following the year of the owner's death.

Trust beneficiary is another trust. If the beneficiary 

of the trust (which is the beneficiary of the IRA) is another 

trust and both trusts meet the above requirements, the 

beneficiaries of the other trust will be treated as having 

been designated as beneficiaries for purposes of determining the distribution period.

Note. The separate account rules, discussed earlier, 

cannot be used by beneficiaries of a trust.

You may want to contact a tax advisor to comply 

with this complicated area of the tax law.

Annuity distributions from an insurance company.

Special rules apply if you receive distributions from your 

traditional IRA as an annuity purchased from an insurance 

company. See Regulations sections 1.401(a)(9)-6 and 

54.4974-2. These regulations can be found in many libraries, IRS offices, and online at IRS.gov.

Are Distributions Taxable?

In general, distributions from a traditional IRA are taxable 

in the year you receive them.

Failed financial institutions. Distributions from a traditional IRA are taxable in the year you receive them even if 

they are made without your consent by a state agency as 

receiver of an insolvent savings institution. This means 

you must include such distributions in your gross income 

unless you roll them over. For an exception to the 1-year 

waiting period rule for rollovers of certain distributions 

from failed financial institutions, see Exception under Rollover From One IRA Into Another, earlier.

Exceptions. Exceptions to distributions from traditional 

IRAs being taxable in the year you receive them are:

Rollovers, earlier,

Qualified charitable distributions, discussed below,

Tax-free withdrawals of contributions, discussed earlier, and

TIP

The return of nondeductible contributions, discussed 

later under Distributions Fully or Partly Taxable.

Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not 

an exception to the rule that distributions from a 

traditional IRA are taxable in the year you receive them. 

Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained earlier and in chapter 2.

Qualified charitable distributions. A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a 

SEP or SIMPLE IRA) to an organization eligible to receive 

tax-deductible contributions. You must be at least age 70 1

2 when the distribution was made. Also, you must have 

the same type of acknowledgment of your contribution 

that you would need to claim a deduction for a charitable 

contribution. See Records To Keep in Publication 526, 

Charitable Contributions.

The maximum annual exclusion for QCDs is $100,000. 

Any QCD in excess of the $100,000 exclusion limit is included in income as any other distribution. If you file a joint 

return, your spouse can also have a QCD and exclude up 

to $100,000. The amount of the QCD is limited to the 

amount of the distribution that would otherwise be included in income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of 

otherwise taxable income.

A QCD will count towards your required minimum 

distribution, discussed earlier.

You cannot claim a charitable contribution deduction for any QCD not included in your income.

Example. On November 1, 2013, Jeff, age 75, directed the trustee of his IRA to make a distribution of $25,000 

directly to a qualified 501(c)(3) organization (a charitable 

organization eligible to receive tax-deductible contributions). The total value of Jeff’s IRA is $30,000 and consists $20,000 of deductible contributions and earnings 

and $10,000 of nondeductible contributions (basis). Since 

Jeff is at least age 701

2 and the distribution is made directly by the trustee to a qualified organization, the part of 

the distribution that would otherwise be includible in Jeff’s 

income ($20,000) is a QCD.

In this case, Jeff has made a QCD of $20,000 (his deductible contributions and earnings). Because Jeff made a 

distribution of nondeductible contributions from his IRA, 

he must file Form 8606, Nondeductible IRAs, with his return. Jeff includes the total distribution ($25,000) on 

line 15a of Form 1040. He completes Form 8606 to determine the amount to enter on line 15b of Form 1040 and 

the remaining basis in his IRA. Jeff enters -0- on line 15b. 

This is Jeff’s only IRA and he took no other distributions in 

2013. He also enters “QCD” next to line 15b to indicate a 

qualified charitable distribution.

After the distribution, his basis in his IRA is $5,000. If 

Jeff itemizes deductions and files Schedule A with Form 

CAUTION

!

TIP

CAUTION

!

Chapter 1 Traditional IRAs Page 41
1040, the $5,000 portion of the distribution attributable to 

the nondeductible contributions can be deducted as a 

charitable contribution, subject to AGI limits. He cannot 

take charitable contribution deduction for the $20,000 portion of the distribution that was not included in his income.

January 2013 QCDs treated as made in 2012. If 

you made a QCD in January 2013, you could have elected to have it treated as made in 2012. If you made this 

election, the full amount of the QCD counted towards your 

2012 required minimum distribution and does not count 

towards your 2013 required minimum distribution. Even if 

you made this election, you must report the QCD on your 

2013 tax return, as discussed below.

2013 Reporting. If you made a QCD in 2013, include 

the full amount of the QCD on your 2013 Form 1040, 

line 15a; Form 1040A, line 11a; or Form 1040NR, 

line 16a. Any amount over the $100,000 limit must be included on your 2013 Form 1040, line 15b; Form 1040A, 

line 11b; or Form 1040NR, line 16b. Be sure to enter 

“QCD” next to 2013 Form 1040, line 15b; Form 1040A, 

line 11b; or Form 1040NR, line 16b.

Additional reporting requirements if you made the 

election to treat a January 2013 QCD as made in 

2012. If you made a QCD in January 2013 and you elected to treat it as made in 2012, this amount will be reported to you on a 2013 Form 1099-R in 2014. You will need 

to include this amount with any other 2013 distributions on 

your 2013 Form 1040, line 15a; Form 1040A, line 11a; or 

Form 1040NR, line 16a, even though you already reported 

it on your 2012 tax return. Report this amount on your 

2013 tax return even if it is the only IRA distribution that 

you are reporting. See 2013 Reporting above and follow 

the reporting instructions there and in your 2013 tax return.

If the total of your QCDs made in 2013, including your 

January QCD that you elected to treat as made in 2012, 

exceeds $100,000, attach a statement to your return listing your QCDs for 2012 and 2013. If you are married filing 

a joint return, the $100,000 limit applies separately to 

each of you.

If you are required to file a 2013 Form 5329 because 

you failed to take your total required minimum distributions for 2013, do not include the amount of the January 

QCD that you elected to treat as made in 2012 on Form 

5329, line 51.

Example. Victor has only one IRA with a total value of 

$250,000 as of December 31, 2012. It consists of deductible contributions and earnings, therefore he does not 

have to fill out a Form 8606.

On January 15, 2013, Victor, age 77, directed the 

trustee of his IRA to make a distribution of $25,000 directly to a qualified 501(c)(3) organization (a charitable organization eligible to receive tax-deductible contributions). 

This transaction meets the requirements to be considered 

a QCD, see discussion earlier. He elected to treat this 

QCD as if it was made in 2012. He reported this amount 

on his 2012 Form 1040, line 15a. The full amount of this 

QCD would count towards his 2012 required minimum 

distribution but would not count towards his 2013 required 

minimum distribution given his election.

On November 29, 2013, Victor directs the trustee of the 

same IRA above to make another distribution of $25,000 

directly to the same organization. This qualifies as a QCD. 

This amount would count towards his 2013 required minimum distribution.

On January 30, 2014, he receives his 2013 Form 

1099-R reporting a total distribution of $50,000 for his 

QCDs. The QCDs were the only distributions made from 

his IRA in 2013. When he fills out his 2013 Form 1040, he 

will enter $50,000 on line 15a, and -0- on line 15b and 

“QCD” next to that line.

One­time qualified HSA funding distribution. You 

may be able to make a qualified HSA funding distribution 

from your traditional IRA or Roth IRA to your Health Savings Account (HSA). You cannot make this distribution 

from an ongoing SEP IRA or SIMPLE IRA. For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer 

contribution is made for the plan year ending with or within 

your tax year in which the distribution would be made. The 

distribution must be less than or equal to your maximum 

annual HSA contribution.

This distribution must be made directly by the trustee of 

the IRA to the trustee of the HSA. The distribution is not 

included in your income, is not deductible, and reduces 

the amount that can be contributed to your HSA. You must 

make the distribution by the end of the year; the special 

rule allowing contributions to your HSA for the previous 

year if made by your tax return filing deadline does not apply. The qualified HSA funding distribution is reported on 

Form 8889, Health Savings Accounts, for the year in 

which the distribution is made.

One-time transfer. Generally, only one qualified HSA 

funding distribution is allowed during your lifetime. If you 

own two or more IRAs, and want to use amounts in multiple IRAs to make a qualified HSA funding distribution, you 

must first make an IRA-to-IRA transfer of the amounts to 

be distributed into a single IRA, and then make the 

one-time qualified HSA funding distribution from that IRA.

Testing period rules apply. If at any time during the 

testing period you cease to meet all requirements to be an 

eligible individual, the amount of the qualified HSA funding 

distribution is included in your gross income. The qualified 

HSA funding distribution is included in gross income in the 

taxable year you first fail to be an eligible individual. This 

amount is subject to the 10 percent additional tax (unless 

the failure is due to disability or death).

More information. See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, for 

additional information about this distribution.

Ordinary income. Distributions from traditional IRAs that 

you include in income are taxed as ordinary income.

No special treatment. In figuring your tax, you cannot 

use the 10-year tax option or capital gain treatment that 

applies to lump-sum distributions from qualified retirement 

plans.

Page 42 Chapter 1 Traditional IRAs
Distributions Fully or Partly Taxable

Distributions from your traditional IRA may be fully or 

partly taxable, depending on whether your IRA includes 

any nondeductible contributions.

Fully taxable. If only deductible contributions were made 

to your traditional IRA (or IRAs, if you have more than 

one), you have no basis in your IRA. Because you have 

no basis in your IRA, any distributions are fully taxable 

when received. See Reporting and Withholding Requirements for Taxable Amounts, later.

Partly taxable. If you made nondeductible contributions 

or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. These 

nondeductible contributions are not taxed when they are 

distributed to you. They are a return of your investment in 

your IRA.

Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts 

(your cost basis) is tax free. If nondeductible contributions 

have been made or after-tax amounts have been rolled 

over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Until all of 

your basis has been distributed, each distribution is partly 

nontaxable and partly taxable.

Form 8606. You must complete Form 8606, and attach it 

to your return, if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Using the form, you will figure the nontaxable 

distributions for 2013, and your total IRA basis for 2013 

and earlier years. See the illustrated Forms 8606 in this 

chapter.

Note. If you are required to file Form 8606, but you are 

not required to file an income tax return, you still must file 

Form 8606. Complete Form 8606, sign it, and send it to 

the IRS at the time and place you would otherwise file an 

income tax return.

Figuring the Nontaxable

and Taxable Amounts

If your traditional IRA includes nondeductible contributions 

and you received a distribution from it in 2013, you must 

use Form 8606 to figure how much of your 2013 IRA distribution is tax free.

Note. When figuring the nontaxable and taxable 

amounts of distributions made prior to death in the year 

the IRA account owner dies, the value of all traditional (including SEP) and SIMPLE IRAs should be figured as of 

the date of death instead of December 31.

Contribution and distribution in the same year. If you 

received a distribution in 2013 from a traditional IRA and 

you also made contributions to a traditional IRA for 2013 

that may not be fully deductible because of the income 

limits, you can use Worksheet 1-5 to figure how much of 

your 2013 IRA distribution is tax free and how much is taxable. Then you can figure the amount of nondeductible 

contributions to report on Form 8606. Follow the instructions under Reporting your nontaxable distribution on 

Form 8606, next, to figure your remaining basis after the 

distribution.

Reporting your nontaxable distribution on Form 

8606. To report your nontaxable distribution and to figure 

the remaining basis in your traditional IRA after distributions, you must complete Worksheet 1-5 before completing Form 8606. Then follow these steps to complete Form 

8606.

1. Use Worksheet 1-2, earlier, or the IRA Deduction 

Worksheet in the Form 1040, 1040A, or 1040NR instructions to figure your deductible contributions to 

traditional IRAs to report on Form 1040, line 32; Form 

1040A, line 17; or Form 1040NR, line 32.

2. After you complete Worksheet 1-2 or the IRA deduction worksheet in the form instructions, enter your 

nondeductible contributions to traditional IRAs on 

line 1 of Form 8606.

3. Complete lines 2 through 5 of Form 8606.

4. If line 5 of Form 8606 is less than line 8 of Worksheet 

1-5, complete lines 6 through 15 of Form 8606 and 

stop here.

5. If line 5 of Form 8606 is equal to or greater than line 8 

of Worksheet 1-5, follow instructions 6 and 7, next. Do 

not complete lines 6 through 12 of Form 8606.

6. Enter the amount from line 8 of Worksheet 1-5 on 

lines 13 and 17 of Form 8606.

7. Complete line 14 of Form 8606.

8. Enter the amount from line 9 of Worksheet 1-5 (or, if 

you entered an amount on line 11, the amount from 

that line) on line 15 of Form 8606.

Example. Rose Green has made the following contributions to her traditional IRAs.

Year Deductible Nondeductible

2006 2,000 -0-

2007 2,000 -0-

2008 2,000 -0-

2009 1,000 -0-

2010 1,000 -0-

2011 1,000 -0-

2012 700 300

Totals $9,700 $300

Rose needs to complete Worksheet 1–5. Figuring the 

Taxable Part of Your IRA Distribution to determine if her 

IRA deduction for 2013 will be reduced or eliminated. In 

2013, she makes a $2,000 contribution that may be partly 

nondeductible. She also receives a distribution of $5,000 

for conversion to a Roth IRA. She completed the conversion before December 31, 2013, and did not 

recharacterize any contributions. At the end of 2013, the 

Chapter 1 Traditional IRAs Page 43
fair market values of her accounts, including earnings, total $20,000. She did not receive any tax-free distributions 

in earlier years. The amount she includes in income for 

2013 is figured on Worksheet 1-5. Figuring the Taxable 

Part of Your IRA Distribution—Illustrated.

The illustrated Form 8606 for Rose shows the information required when you need to use Worksheet 1-5 to figure your nontaxable distribution. Assume that the $500 

entered on Form 8606, line 1, is the amount Rose figured 

using instructions 1 and 2 given earlier under Reporting 

your nontaxable distribution on Form 8606.

Figuring the Taxable Part of Your IRA 

Distribution

Worksheet 1-5.

Keep for Your Records

Use only if you made contributions to a traditional IRA for 2013 that may not be fully deductible and have to figure the 

taxable part of your 2013 distributions to determine your modified AGI. See Limit if Covered by Employer Plan, earlier.

Form 8606 and the related instructions will be needed when using this worksheet.

Note. When used in this worksheet, the term outstanding rollover refers to an amount distributed from a traditional IRA 

as part of a rollover that, as of December 31, 2013, had not yet been reinvested in another traditional IRA, but was still 

eligible to be rolled over tax free.

1. Enter the basis in your traditional IRAs as of December 31, 2012 ................... 1.

2. Enter the total of all contributions made to your traditional IRAs during 2013 and all 

contributions made during 2014 that were for 2013, whether or not deductible. Do 

not include rollover contributions properly rolled over into IRAs. Also, do not include 

certain returned contributions described in the instructions for line 7, Part I, of Form 

8606. .......................................................................... 2.

3. Add lines 1 and 2 ............................................................... 3.

4. Enter the value of all your traditional IRAs as of December 31, 2013 (include any 

outstanding rollovers from traditional IRAs to other traditional IRAs). ................ 4.

5. Enter the total distributions from traditional IRAs (including amounts converted to Roth 

IRAs that will be shown on line 16 of Form 8606) received in 2013. (Do not include 

outstanding rollovers included on line 4 or any rollovers between traditional IRAs 

completed by December 31, 2013. Also, do not include certain returned contributions 

described in the instructions for line 7, Part I, of Form 8606.) ........................ 5.

6. Add lines 4 and 5 ............................................................... 6.

7. Divide line 3 by line 6. Enter the result as a decimal (rounded to at least three places). 

If the result is 1.000 or more, enter 1.000 .......................................... 7.

8. Nontaxable portion of the distribution.

Multiply line 5 by line 7. Enter the result here and on lines 13 and 17 of Form 

8606 ........................................................................... 8.

9. Taxable portion of the distribution (before adjustment for conversions).

Subtract line 8 from line 5. Enter the result here and if there are no amounts converted 

to Roth IRAs, stop here and enter the result on line 15 of Form 8606 ................ 9.

10. Enter the amount included on line 9 that is allocable to amounts converted to Roth 

IRAs by December 31, 2013. (See Note at the end of this worksheet.) Enter here and 

on line 18 of Form 8606 .......................................................... 10.

11. Taxable portion of the distribution (after adjustments for conversions). 

Subtract line 10 from line 9. Enter the result here and on line 15 of Form 8606 ........ 11.

Note. If the amount on line 5 of this worksheet includes an amount converted to a Roth IRA by December 31, 2013, you must 

determine the percentage of the distribution allocable to the conversion. To figure the percentage, divide the amount converted 

(from line 16 of Form 8606) by the total distributions shown on line 5. To figure the amounts to include on line 10 of this worksheet 

and on line 18, Part II of Form 8606, multiply line 9 of the worksheet by the percentage you figured.

Page 44 Chapter 1 Traditional IRAs
Worksheet 1-5. Figuring the Taxable Part of Your IRA Distribution—Illustrated

Use only if you made contributions to a traditional IRA for 2013 that may not be fully deductible and have to figure the 

taxable part of your 2013 distributions to determine your modified AGI. See Limit if Covered by Employer Plan, earlier.

Form 8606 and the related instructions will be needed when using this worksheet.

Note. When used in this worksheet, the term outstanding rollover refers to an amount distributed from a traditional IRA 

as part of a rollover that, as of December 31, 2013, had not yet been reinvested in another traditional IRA, but was still 

eligible to be rolled over tax free.

1. Enter the basis in your traditional IRAs as of December 31, 2012 ....................... 1. 300

2. Enter the total of all contributions made to your traditional IRAs during 2013 and all 

contributions made during 2014 that were for 2013, whether or not deductible. Do not 

include rollover contributions properly rolled over into IRAs. Also, do not include certain 

returned contributions described in the instructions for line 7, Part I, of Form 8606. ........ 2. 2,000

3. Add lines 1 and 2 ................................................................... 3. 2,300

4. Enter the value of all your traditional IRAs as of December 31, 2013 (include any 

outstanding rollovers from traditional IRAs to other traditional IRAs) ..................... 4. 20,000

5. Enter the total distributions from traditional IRAs (including amounts converted to Roth 

IRAs that will be shown on line 16 of Form 8606) received in 2013. (Do not include 

outstanding rollovers included on line 4 or any rollovers between traditional IRAs 

completed by December 31, 2013. Also, do not include certain returned contributions 

described in the instructions for line 7, Part I, of Form 8606.) ............................ 5. 5,000

6. Add lines 4 and 5 ................................................................... 6. 25,000

7. Divide line 3 by line 6. Enter the result as a decimal (rounded to at least three places).

If the result is 1.000 or more, enter 1.000 .............................................. 7. .092

8. Nontaxable portion of the distribution.

Multiply line 5 by line 7. Enter the result here and on lines 13 and 17 of Form 8606 ........ 8. 460

9. Taxable portion of the distribution (before adjustment for conversions).

Subtract line 8 from line 5. Enter the result here and if there are no amounts converted to 

Roth IRAs, stop here and enter the result on line 15 of Form 8606 ...................... 9. 4,540

10. Enter the amount included on line 9 that is allocable to amounts converted to Roth IRAs by 

December 31, 2013. (See Note at the end of this worksheet.) Enter here and on line 18 of 

Form 8606 ......................................................................... 10. 4,540

11. Taxable portion of the distribution (after adjustments for conversions). 

Subtract line 10 from line 9. Enter the result here and on line 15 of Form 8606 ............ 11. 0

Note. If the amount on line 5 of this worksheet includes an amount converted to a Roth IRA by December 31, 2013, you must 

determine the percentage of the distribution allocable to the conversion. To figure the percentage, divide the amount converted 

(from line 16 of Form 8606) by the total distributions shown on line 5. To figure the amounts to include on line 10 of this worksheet 

and on line 18, Part II of Form 8606, multiply line 9 of the worksheet by the percentage you figured.

Chapter 1 Traditional IRAs Page 45
Form 8606

Department of the Treasury 

Internal Revenue Service (99)

Nondeductible IRAs

▶ Information about Form 8606 and its separate instructions is at www.irs.gov/form8606.

▶ Attach to Form 1040, Form 1040A, or Form 1040NR.

OMB No. 1545-0074

2013

Attachment 

Sequence No. 48

Name. If married, le a separate form for each spouse required to le Form 8606. See instructions. Your social security number 

Fill in Your Address Only 

If You Are Filing This 

Form by Itself and Not 

With Your Tax Return ▲

Home address (number and street, or P.O. box if mail is not delivered to your home) Apt. no.

City, town or post ofce, state, and ZIP code. If you have a foreign address, also complete the spaces below (see instructions). 

Foreign country name Foreign province/state/county Foreign postal code

Part I Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE IRAs

Complete this part only if one or more of the following apply.

• You made nondeductible contributions to a traditional IRA for 2013. 

• You took distributions from a traditional, SEP, or SIMPLE IRA in 2013 and you made nondeductible contributions to a 

traditional IRA in 2013 or an earlier year. For this purpose, a distribution does not include a rollover, qualified charitable 

distributions, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions. 

• You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2013 (excluding any portion 

you recharacterized) and you made nondeductible contributions to a traditional IRA in 2013 or an earlier year.

1 Enter your nondeductible contributions to traditional IRAs for 2013, including those made for 2013 

from January 1, 2014, through April 15, 2014 (see instructions) . . . . . . . . . . . . 1

2 Enter your total basis in traditional IRAs (see instructions) . . . . . . . . . . . . . . 2

3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

In 2013, did you take a distribution 

from traditional, SEP, or SIMPLE IRAs, 

or make a Roth IRA conversion?

No ▶ Enter the amount from line 3 on line 14. 

Do not complete the rest of Part I.

Yes ▶ Go to line 4.

4 Enter those contributions included on line 1 that were made from January 1, 2014, through April 15, 2014 4

5 Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Enter the value of all your traditional, SEP, and SIMPLE IRAs as of 

December 31, 2013, plus any outstanding rollovers (see instructions) . . 6

7 Enter your distributions from traditional, SEP, and SIMPLE IRAs in

2013. Do not include rollovers, qualied charitable distributions, a onetime distribution to fund an HSA, conversions to a Roth IRA, certain

returned contributions, or recharacterizations of traditional IRA 

contributions (see instructions) . . . . . . . . . . . . . . 7

8 Enter the net amount you converted from traditional, SEP, and SIMPLE 

IRAs to Roth IRAs in 2013. Do not include amounts converted that you 

later recharacterized (see instructions). Also enter this amount on line 16 . 8

9 Add lines 6, 7, and 8 . . . . . . . . 9

10 Divide line 5 by line 9. Enter the result as a decimal rounded to at least 

3 places. If the result is 1.000 or more, enter “1.000” . . . . . . 10 × .

11 Multiply line 8 by line 10. This is the nontaxable portion of the amount 

you converted to Roth IRAs. Also enter this amount on line 17 . . . 11

12 Multiply line 7 by line 10. This is the nontaxable portion of your 

distributions that you did not convert to a Roth IRA . . . . . . . 12

13 Add lines 11 and 12. This is the nontaxable portion of all your distributions . . . . . . . . 13

14 Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2013 and earlier years 14

15 Taxable amount. Subtract line 12 from line 7. If more than zero, also include this amount on Form

1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b . . . . . . . . . . . . 15

Note. You may be subject to an additional 10% tax on the amount on line 15 if you were under 

age 591⁄2 at the time of the distribution (see instructions).

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63966F Form 8606 (2013) 

Rose Green 001-00-0000

500

300

800

0

800

460*

340

0

* From Worksheet 1-5 in Publication 590 Page 46 Chapter 1 Traditional IRAs
Form 8606 (2013) Page 2 

Part II 2013 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs

Complete this part if you converted part or all of your traditional, SEP, and SIMPLE IRAs to a Roth IRA in 2013 (excluding 

any portion you recharacterized).

16 If you completed Part I, enter the amount from line 8. Otherwise, enter the net amount you 

converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2013. Do not include amounts 

you later recharacterized back to traditional, SEP, or SIMPLE IRAs in 2013 or 2014 (see instructions) 16

17 If you completed Part I, enter the amount from line 11. Otherwise, enter your basis in the amount 

on line 16 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 17

18 Taxable amount. Subtract line 17 from line 16. Also include this amount on Form 1040, line 15b; 

Form 1040A, line 11b; or Form 1040NR, line 16b . . . . . . . . . . . . . . . . . 18

Part III Distributions From Roth IRAs

Complete this part only if you took a distribution from a Roth IRA in 2013. For this purpose, a distribution does not 

include a rollover, qualied charitable distributions, a one-time distribution to fund an HSA, recharacterization, or return

of certain contributions (see instructions).

19 Enter your total nonqualied distributions from Roth IRAs in 2013, including any qualied rst-time 

homebuyer distributions (see instructions) . . . . . . . . . . . . . . . . . . . 19

20 Qualied rst-time homebuyer expenses (see instructions). Do not enter more than $10,000 . . 20

21 Subtract line 20 from line 19. If zero or less, enter -0- and skip lines 22 through 25 . . . . . . . 21

22 Enter your basis in Roth IRA contributions (see instructions) . . . . . . . . . . . . . 22

23 Subtract line 22 from line 21. If zero or less, enter -0- and skip lines 24 and 25. If more than zero, 

you may be subject to an additional tax (see instructions) . . . . . . . . . . . . . . 23

24 Enter your basis in conversions from traditional, SEP, and SIMPLE IRAs and rollovers from

qualied retirement plans to a Roth IRA (see instructions) . . . . . . . . . . . . . . 24

25 Taxable amount. Subtract line 24 from line 23. If more than zero, also include this amount on

Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b . . . . . . . . . . 25

Sign Here Only If You 

Are Filing This Form 

by Itself and Not With 

Your Tax Return

Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my knowledge and 

belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

▲

Your signature ▲

Date

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer’s signature Date Check if 

self-employed 

PTIN

Firm's name ▶

Firm's address ▶

Firm's EIN ▶

Phone no.

Form 8606 (2013) 

*From Worksheet1-5 in Publication 590

5,000

4,540*

460

Chapter 1 Traditional IRAs Page 47
Recognizing Losses on Traditional 

IRA Investments

If you have a loss on your traditional IRA investment, you 

can recognize (include) the loss on your income tax return, but only when all the amounts in all your traditional 

IRA accounts have been distributed to you and the total 

distributions are less than your unrecovered basis, if any.

Your basis is the total amount of the nondeductible 

contributions in your traditional IRAs.

You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that 

applies to certain miscellaneous itemized deductions on 

Schedule A (Form 1040). Any such losses are added 

back to taxable income for purposes of calculating the alternative minimum tax.

Example. Bill King has made nondeductible contributions to a traditional IRA totaling $2,000, giving him a basis at the end of 2012 of $2,000. By the end of 2013, his 

IRA earns $400 in interest income. In that year, Bill receives a distribution of $600 ($500 basis + $100 interest), 

reducing the value of his IRA to $1,800 ($2,000 + $400 − 

$600) at year's end. Bill figures the taxable part of the distribution and his remaining basis on Form 8606 (illustrated).

In 2014, Bill's IRA has a loss of $500. At the end of that 

year, Bill's IRA balance is $1,300 ($1,800 − $500). Bill's 

remaining basis in his IRA is $1,500 ($2,000 − $500). Bill 

receives the $1,300 balance remaining in the IRA. He can 

claim a loss for 2014 of $200 (the $1,500 basis minus the 

$1,300 distribution of the IRA balance).

Page 48 Chapter 1 Traditional IRAs
Form 8606

Department of the Treasury 

Internal Revenue Service (99)

Nondeductible IRAs

▶ Information about Form 8606 and its separate instructions is at www.irs.gov/form8606.

▶ Attach to Form 1040, Form 1040A, or Form 1040NR.

OMB No. 1545-0074

2013

Attachment 

Sequence No. 48

Name. If married, le a separate form for each spouse required to le Form 8606. See instructions. Your social security number 

Fill in Your Address Only 

If You Are Filing This 

Form by Itself and Not 

With Your Tax Return ▲

Home address (number and street, or P.O. box if mail is not delivered to your home) Apt. no.

City, town or post ofce, state, and ZIP code. If you have a foreign address, also complete the spaces below (see instructions). 

Foreign country name Foreign province/state/county Foreign postal code

Part I Nondeductible Contributions to Traditional IRAs and Distributions From Traditional, SEP, and SIMPLE IRAs

Complete this part only if one or more of the following apply.

• You made nondeductible contributions to a traditional IRA for 2013. 

• You took distributions from a traditional, SEP, or SIMPLE IRA in 2013 and you made nondeductible contributions to a 

traditional IRA in 2013 or an earlier year. For this purpose, a distribution does not include a rollover, qualified charitable 

distributions, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions. 

• You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2013 (excluding any portion 

you recharacterized) and you made nondeductible contributions to a traditional IRA in 2013 or an earlier year.

1 Enter your nondeductible contributions to traditional IRAs for 2013, including those made for 2013 

from January 1, 2014, through April 15, 2014 (see instructions) . . . . . . . . . . . . 1

2 Enter your total basis in traditional IRAs (see instructions) . . . . . . . . . . . . . . 2

3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

In 2013, did you take a distribution 

from traditional, SEP, or SIMPLE IRAs, 

or make a Roth IRA conversion?

No ▶ Enter the amount from line 3 on line 14. 

Do not complete the rest of Part I.

Yes ▶ Go to line 4.

4 Enter those contributions included on line 1 that were made from January 1, 2014, through April 15, 2014 4

5 Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Enter the value of all your traditional, SEP, and SIMPLE IRAs as of 

December 31, 2013, plus any outstanding rollovers (see instructions) . . 6

7 Enter your distributions from traditional, SEP, and SIMPLE IRAs in

2013. Do not include rollovers, qualied charitable distributions, a onetime distribution to fund an HSA, conversions to a Roth IRA, certain

returned contributions, or recharacterizations of traditional IRA 

contributions (see instructions) . . . . . . . . . . . . . . 7

8 Enter the net amount you converted from traditional, SEP, and SIMPLE 

IRAs to Roth IRAs in 2013. Do not include amounts converted that you 

later recharacterized (see instructions). Also enter this amount on line 16 . 8

9 Add lines 6, 7, and 8 . . . . . . . . 9

10 Divide line 5 by line 9. Enter the result as a decimal rounded to at least 

3 places. If the result is 1.000 or more, enter “1.000” . . . . . . 10 × .

11 Multiply line 8 by line 10. This is the nontaxable portion of the amount 

you converted to Roth IRAs. Also enter this amount on line 17 . . . 11

12 Multiply line 7 by line 10. This is the nontaxable portion of your 

distributions that you did not convert to a Roth IRA . . . . . . . 12

13 Add lines 11 and 12. This is the nontaxable portion of all your distributions . . . . . . . . 13

14 Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2013 and earlier years 14

15 Taxable amount. Subtract line 12 from line 7. If more than zero, also include this amount on Form

1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b . . . . . . . . . . . . 15

Note. You may be subject to an additional 10% tax on the amount on line 15 if you were under 

age 591⁄2 at the time of the distribution (see instructions).

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63966F Form 8606 (2013) 

Bill King 002-00-0000

0

2,000

0

500

1,500

100

2,000

2,000

1,800

600

833

500

2,400

Chapter 1 Traditional IRAs Page 49
Other Special IRA

Distribution Situations

Two other special IRA distribution situations are discussed next.

Distribution of an annuity contract from your IRA account. You can tell the trustee or custodian of your traditional IRA account to use the amount in the account to buy 

an annuity contract for you. You are not taxed when you 

receive the annuity contract (unless the annuity contract is 

being converted to an annuity held by a Roth IRA). You 

are taxed when you start receiving payments under that 

annuity contract.

Tax treatment. If only deductible contributions were 

made to your traditional IRA since it was opened (this includes all your traditional IRAs, if you have more than 

one), the annuity payments are fully taxable.

If any of your traditional IRAs include both deductible 

and nondeductible contributions, the annuity payments 

are taxed as explained earlier under Distributions Fully or 

Partly Taxable.

Cashing in retirement bonds. When you cash in retirement bonds, you are taxed on the entire amount you receive. Unless you have already cashed them in, you will 

be taxed on the entire value of your bonds in the year in 

which you reach age 701

2. The value of the bonds is the 

amount you would have received if you had cashed them 

in at the end of that year. When you later cash in the 

bonds, you will not be taxed again.

Reporting and Withholding 

Requirements for Taxable Amounts

If you receive a distribution from your traditional IRA, you 

will receive Form 1099-R, or a similar statement. IRA distributions are shown in boxes 1 and 2a of Form 1099-R. A 

number or letter code in box 7 tells you what type of distribution you received from your IRA.

Number codes. Some of the number codes are explained below. All of the codes are explained in the instructions for recipients on Form 1099-R.

1—Early distribution, no known exception.

2—Early distribution, exception applies.

3—Disability.

4—Death.

5—Prohibited transaction.

7—Normal distribution.

8—Excess contributions plus earnings/

excess deferrals (and/or earnings)

taxable in 2013.

If code 1, 5, or 8 appears on your Form 1099­R, 

you are probably subject to a penalty or additional tax. If code 1 appears, see Early Distributions, later. If code 5 appears, see Prohibited Transactions, later. If code 8 appears, see Excess Contributions, 

later.

Letter codes. Some of the letter codes are explained 

below. All of the codes are explained in the instructions for 

recipients on Form 1099-R.

B—Designated Roth account distribution.

G—Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a 

section 403(b) plan, a governmental section 457(b) 

plan, or an IRA.

H—Direct rollover of a designated Roth account distribution to a Roth IRA.

J—Early distribution from a Roth IRA.

N—Recharacterized IRA contribution made for 2013

and recharacterized in 2013.

P—Excess contributions plus earnings/

excess deferrals taxable in 2012.

Q—Qualified distribution from a Roth IRA.

R—Recharacterized IRA contribution made for 2012

 and recharacterized in 2013.

S—Early distribution from a SIMPLE IRA in the first

2 years, no known exception.

T—Roth IRA distribution, exception applies.

If the distribution shown on Form 1099-R is from your 

IRA, SEP IRA, or SIMPLE IRA, the small box in box 7 (labeled IRA/SEP/SIMPLE) should be marked with an “X.”

If code J, P, or S appears on your Form 1099­R, 

you are probably subject to a penalty or additional tax. If code J appears, see Early Distributions, later. If code P appears, see Excess Contributions, 

later. If code S appears, see Additional Tax on Early Distributions in chapter 3.

Withholding. Federal income tax is withheld from distributions from traditional IRAs unless you choose not to 

have tax withheld.

The amount of tax withheld from an annuity or a similar 

periodic payment is based on your marital status and the 

number of withholding allowances you claim on your withholding certificate (Form W-4P). If you have not filed a certificate, tax will be withheld as if you are a married individual claiming three withholding allowances.

Generally, tax will be withheld at a 10% rate on nonperiodic distributions.

IRA distributions delivered outside the United 

States. In general, if you are a U.S. citizen or resident 

alien and your home address is outside the United States 

or its possessions, you cannot choose exemption from 

withholding on distributions from your traditional IRA.

To choose exemption from withholding, you must certify to the payer under penalties of perjury that you are not 

CAUTION

!

CAUTION

!

Page 50 Chapter 1 Traditional IRAs
a U.S. citizen, a resident alien of the United States, or a 

tax-avoidance expatriate.

Even if this election is made, the payer must withhold 

tax at the rates prescribed for nonresident aliens.

More information. For more information on withholding on pensions and annuities, see Pensions and Annuities in chapter 1 of Publication 505, Tax Withholding and 

Estimated Tax. For more information on withholding on 

nonresident aliens and foreign entities, see Pensions, Annuities, and Alimony under Withholding on Specific Income in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Reporting taxable distributions on your return. Report fully taxable distributions, including early distributions, 

on Form 1040, line 15b (no entry is required on line 15a); 

Form 1040A, line 11b (no entry is required on line 11a); or 

Form 1040NR, line 16b (no entry is required on line 16a). 

If only part of the distribution is taxable, enter the total 

amount on Form 1040, line 15a; Form 1040A, line 11a; or 

Form 1040NR, line 16a, and enter the taxable part on 

Form 1040, line 15b; Form 1040A, line 11b; or Form 

1040NR, line 16b. You cannot report distributions on 

Form 1040EZ or Form 1040NR-EZ.

Estate tax. Generally, the value of an annuity or other 

payment receivable by any beneficiary of a decedent's 

traditional IRA that represents the part of the purchase 

price contributed by the decedent (or by his or her former 

employer(s)) must be included in the decedent's gross estate. For more information, see the Instructions for Schedule I, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

What Acts Result in Penalties 

or Additional Taxes?

The tax advantages of using traditional IRAs for retirement 

savings can be offset by additional taxes and penalties if 

you do not follow the rules. There are additions to the regular tax for using your IRA funds in prohibited transactions. There are also additional taxes for the following activities.

Investing in collectibles.

Making excess contributions.

Taking early distributions.

Allowing excess amounts to accumulate (failing to 

take required distributions).

There are penalties for overstating the amount of nondeductible contributions and for failure to file Form 8606, if 

required.

This chapter discusses those acts that you should 

avoid and the additional taxes and other costs, including 

loss of IRA status, that apply if you do not avoid those 

acts.

Prohibited Transactions

Generally, a prohibited transaction is any improper use of 

your traditional IRA account or annuity by you, your beneficiary, or any disqualified person.

Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, 

and any spouse of a lineal descendant).

The following are some examples of prohibited transactions with a traditional IRA.

Borrowing money from it.

Selling property to it.

Using it as security for a loan.

Buying property for personal use (present or future) 

with IRA funds.

Fiduciary. For these purposes, a fiduciary includes anyone who does any of the following.

Exercises any discretionary authority or discretionary 

control in managing your IRA or exercises any authority or control in managing or disposing of its assets.

Provides investment advice to your IRA for a fee, or 

has any authority or responsibility to do so.

Has any discretionary authority or discretionary responsibility in administering your IRA.

Effect on an IRA account. Generally, if you or your beneficiary engages in a prohibited transaction in connection 

with your traditional IRA account at any time during the 

year, the account stops being an IRA as of the first day of 

that year.

Effect on you or your beneficiary. If your account 

stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated 

as distributing all its assets to you at their fair market values on the first day of the year. If the total of those values 

is more than your basis in the IRA, you will have a taxable 

gain that is includible in your income. For information on 

figuring your gain and reporting it in income, see Are Distributions Taxable, earlier. The distribution may be subject 

to additional taxes or penalties.

Borrowing on an annuity contract. If you borrow 

money against your traditional IRA annuity contract, you 

must include in your gross income the fair market value of 

the annuity contract as of the first day of your tax year. 

You may have to pay the 10% additional tax on early distributions, discussed later.

Pledging an account as security. If you use a part of 

your traditional IRA account as security for a loan, that 

part is treated as a distribution and is included in your 

gross income. You may have to pay the 10% additional 

tax on early distributions, discussed later.

Trust account set up by an employer or an employee 

association. Your account or annuity does not lose its 

Chapter 1 Traditional IRAs Page 51
IRA treatment if your employer or the employee association with whom you have your traditional IRA engages in a 

prohibited transaction.

Owner participation. If you participate in the prohibited transaction with your employer or the association, 

your account is no longer treated as an IRA.

Taxes on prohibited transactions. If someone other 

than the owner or beneficiary of a traditional IRA engages 

in a prohibited transaction, that person may be liable for 

certain taxes. In general, there is a 15% tax on the amount 

of the prohibited transaction and a 100% additional tax if 

the transaction is not corrected.

Loss of IRA status. If the traditional IRA ceases to be 

an IRA because of a prohibited transaction by you or your 

beneficiary, you or your beneficiary are not liable for these 

excise taxes. However, you or your beneficiary may have 

to pay other taxes as discussed under Effect on you or 

your beneficiary, earlier.

Exempt Transactions

The following two types of transactions are not prohibited 

transactions if they meet the requirements that follow.

Payments of cash, property, or other consideration by 

the sponsor of your traditional IRA to you (or members 

of your family).

Your receipt of services at reduced or no cost from the 

bank where your traditional IRA is established or 

maintained.

Payments of cash, property, or other consideration. 

Even if a sponsor makes payments to you or your family, 

there is no prohibited transaction if all three of the following requirements are met.

1. The payments are for establishing a traditional IRA or 

for making additional contributions to it.

2. The IRA is established solely to benefit you, your 

spouse, and your or your spouse's beneficiaries.

3. During the year, the total fair market value of the payments you receive is not more than:

a. $10 for IRA deposits of less than $5,000, or

b. $20 for IRA deposits of $5,000 or more.

If the consideration is group term life insurance, requirements (1) and (3) do not apply if no more than $5,000 of 

the face value of the insurance is based on a dollar-for-dollar basis on the assets in your IRA.

Services received at reduced or no cost. Even if a 

sponsor provides services at reduced or no cost, there is 

no prohibited transaction if all of the following requirements are met.

The traditional IRA qualifying you to receive the services is established and maintained for the benefit of 

you, your spouse, and your or your spouse's beneficiaries.

The bank itself can legally offer the services.

The services are provided in the ordinary course of 

business by the bank (or a bank affiliate) to customers 

who qualify but do not maintain an IRA (or a Keogh 

plan).

The determination, for a traditional IRA, of who qualifies for these services is based on an IRA (or a Keogh 

plan) deposit balance equal to the lowest qualifying 

balance for any other type of account.

The rate of return on a traditional IRA investment that 

qualifies is not less than the return on an identical investment that could have been made at the same time 

at the same branch of the bank by a customer who is 

not eligible for (or does not receive) these services.

Investment in Collectibles

If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. You may have to pay the 10% additional tax on early 

distributions, discussed later.

Any amounts that were considered to be distributed 

when the investment in the collectible was made, and 

which were included in your income at that time, are not 

included in your income when the collectible is actually 

distributed from your IRA.

Collectibles. These include:

Artworks,

Rugs,

Antiques,

Metals,

Gems,

Stamps,

Coins,

Alcoholic beverages, and

Certain other tangible personal property.

Exception. Your IRA can invest in one, one-half, 

one-quarter, or one-tenth ounce U.S. gold coins, or 

one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion.

Excess Contributions

Generally, an excess contribution is the amount contributed to your traditional IRAs for the year that is more than 

the smaller of:

$5,500 ($6,500 if you are age 50 or older), or

Your taxable compensation for the year.

Page 52 Chapter 1 Traditional IRAs
The taxable compensation limit applies whether your 

contributions are deductible or nondeductible.

Contributions for the year you reach age 701

2 and any 

later year are also excess contributions.

An excess contribution could be the result of your contribution, your spouse's contribution, your employer's contribution, or an improper rollover contribution. If your employer makes contributions on your behalf to a SEP IRA, 

see chapter 2 of Publication 560.

Tax on Excess Contributions

In general, if the excess contributions for a year are not 

withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. You 

must pay the 6% tax each year on excess amounts that 

remain in your traditional IRA at the end of your tax year. 

The tax cannot be more than 6% of the combined value of 

all your IRAs as of the end of your tax year.

The additional tax is figured on Form 5329. For information on filing Form 5329, see Reporting Additional 

Taxes, later.

Example. For 2013, Paul Jones is 45 years old and 

single, his compensation is $31,000, and he contributed 

$6,000 to his traditional IRA. Paul has made an excess 

contribution to his IRA of $500 ($6,000 minus the $5,500 

limit). The contribution earned $5 interest in 2013 and $6 

interest in 2014 before the due date of the return, including extensions. He does not withdraw the $500 or the interest it earned by the due date of his return, including extensions.

Paul figures his additional tax for 2013 by multiplying 

the excess contribution ($500) shown on Form 5329, 

line 16, by .06, giving him an additional tax liability of $30. 

He enters the tax on Form 5329, line 17, and on Form 

1040, line 58. See Paul's filled-in Form 5329, later.

Excess Contributions Withdrawn

by Due Date of Return

You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also 

withdraw any interest or other income earned on the excess contribution. You must complete your withdrawal by 

the date your tax return for that year is due, including extensions.

How to treat withdrawn contributions. Do not include 

in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is 

due if both of the following conditions are met.

No deduction was allowed for the excess contribution.

You withdraw the interest or other income earned on 

the excess contribution.

You can take into account any loss on the contribution 

while it was in the IRA when calculating the amount that 

must be withdrawn. If there was a loss, the net income 

you must withdraw may be a negative amount.

In most cases, the net income you must transfer will be 

determined by your IRA trustee or custodian. If you need 

to determine the applicable net income you need to withdraw, you can use the same method that was used in 

Worksheet 1-3, earlier.

If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still 

have the contribution returned to you within 6 months of 

the due date of your 2013 tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Report any 

related earnings on the amended return and include an 

explanation of the withdrawal. Make any other necessary 

changes on the amended return (for example, if you reported the contributions as excess contributions on your 

original return, include an amended Form 5329 reflecting 

that the withdrawn contributions are no longer treated as 

having been contributed).

How to treat withdrawn interest or other income. You 

must include in your gross income the interest or other income that was earned on the excess contribution. Report 

it on your return for the year in which the excess contribution was made. Your withdrawal of interest or other income may be subject to an additional 10% tax on early 

distributions, discussed later.

Form 1099­R. You will receive Form 1099-R indicating 

the amount of the withdrawal. If the excess contribution 

was made in a previous tax year, the form will indicate the 

year in which the earnings are taxable.

Example. Maria, age 35, made an excess contribution 

in 2013 of $1,000, which she withdrew by April 15, 2014, 

the due date of her return. At the same time, she also 

withdrew the $50 income that was earned on the $1,000. 

She must include the $50 in her gross income for 2013 

(the year in which the excess contribution was made). She 

must also pay an additional tax of $5 (the 10% additional 

tax on early distributions because she is not yet 591

2 years 

old), but she does not have to report the excess contribution as income or pay the 6% excise tax. Maria receives a 

Form 1099-R showing that the earnings are taxable for 

2013.

Chapter 1 Traditional IRAs Page 53
Form 5329

Department of the Treasury 

Internal Revenue Service (99)

Additional Taxes on Qualified Plans 

(Including IRAs) and Other Tax-Favored Accounts

▶ Attach to Form 1040 or Form 1040NR. 

▶ Information about Form 5329 and its separate instructions is at www.irs.gov/form5329.

OMB No. 1545-0074

2013

Attachment 

Sequence No. 29

Name of individual subject to additional tax. If married ling jointly, see instructions. Your social security number 

Fill in Your Address Only 

If You Are Filing This 

Form by Itself and Not 

With Your Tax Return ▲

Home address (number and street), or P.O. box if mail is not delivered to your home Apt. no.

City, town or post ofce, state, and ZIP code. If you have a foreign address, also complete 

the spaces below (see instructions). If this is an amended 

return, check here ▶

Foreign country name Foreign province/state/county Foreign postal code

If you only owe the additional 10% tax on early distributions, you may be able to report this tax directly on Form 1040, line 58, or 

Form 1040NR, line 56, without ling Form 5329. See the instructions for Form 1040, line 58, or for Form 1040NR, line 56.

Part I Additional Tax on Early Distributions

Complete this part if you took a taxable distribution before you reached age 591⁄2 from a qualied retirement plan (including an 

IRA) or modied endowment contract (unless you are reporting this tax directly on Form 1040 or Form 1040NR—see above). You 

may also have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions or for 

certain Roth IRA distributions (see instructions).

1 Early distributions included in income. For Roth IRA distributions, see instructions . . . . . . 1 

2 Early distributions included on line 1 that are not subject to the additional tax (see instructions).

Enter the appropriate exception number from the instructions: . . . . . . . . . 2 

3 Amount subject to additional tax. Subtract line 2 from line 1 . . . . . . . . . . . . . 3 

4 Additional tax. Enter 10% (.10) of line 3. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 4 

Caution: If any part of the amount on line 3 was a distribution from a SIMPLE IRA, you may have 

to include 25% of that amount on line 4 instead of 10% (see instructions).

Part II Additional Tax on Certain Distributions From Education Accounts

Complete this part if you included an amount in income, on Form 1040 or Form 1040NR, line 21, from a Coverdell 

education savings account (ESA) or a qualied tuition program (QTP).

5 Distributions included in income from Coverdell ESAs and QTPs . . . . . . . . . . . . 5 

6 Distributions included on line 5 that are not subject to the additional tax (see instructions) . . . 6 

7 Amount subject to additional tax. Subtract line 6 from line 5 . . . . . . . . . . . . . 7 

8 Additional tax. Enter 10% (.10) of line 7. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 8 

Part III Additional Tax on Excess Contributions to Traditional IRAs

Complete this part if you contributed more to your traditional IRAs for 2013 than is allowable or you had an amount on line 

17 of your 2012 Form 5329.

9 Enter your excess contributions from line 16 of your 2012 Form 5329 (see instructions). If zero, go to line 15 9 

10 If your traditional IRA contributions for 2013 are less than your 

maximum allowable contribution, see instructions. Otherwise, enter -0- 10 

11 2013 traditional IRA distributions included in income (see instructions) . 11 

12 2013 distributions of prior year excess contributions (see instructions) . 12 

13 Add lines 10, 11, and 12 . . . . . . . . . . . . . . . . . . . . . . . . . 13 

14 Prior year excess contributions. Subtract line 13 from line 9. If zero or less, enter -0- . . . . . 14 

15 Excess contributions for 2013 (see instructions) . . . . . . . . . . . . . . . . . 15 

16 Total excess contributions. Add lines 14 and 15 . . . . . . . . . . . . . . . . . 16 

17 Additional tax. Enter 6% (.06) of the smaller of line 16 or the value of your traditional IRAs on December 31, 2013 

(including 2013 contributions made in 2014). Include this amount on Form 1040, line 58, or Form 1040NR, line 56 . 17 

Part IV Additional Tax on Excess Contributions to Roth IRAs

Complete this part if you contributed more to your Roth IRAs for 2013 than is allowable or you had an amount on line 25 of your 2012 Form 5329.

18 Enter your excess contributions from line 24 of your 2012 Form 5329 (see instructions). If zero, go to line 23 18 

19 If your Roth IRA contributions for 2013 are less than your maximum 

allowable contribution, see instructions. Otherwise, enter -0- . . . . 19 

20 2013 distributions from your Roth IRAs (see instructions) . . . . . 20 

21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . 21 

22 Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter -0-. . . . . 22 

23 Excess contributions for 2013 (see instructions) . . . . . . . . . . . . . . . . . 23 

24 Total excess contributions. Add lines 22 and 23 . . . . . . . . . . . . . . . . . 24 

25 Additional tax. Enter 6% (.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2013

(including 2013 contributions made in 2014). Include this amount on Form 1040, line 58, or Form 1040NR, line 56 25 

For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13329Q Form 5329 (2013) 

Paul Jones 003-00-0000

500

500

30

Page 54 Chapter 1 Traditional IRAs
Excess Contributions Withdrawn

After Due Date of Return

In general, you must include all distributions (withdrawals) 

from your traditional IRA in your gross income. However, if 

the following conditions are met, you can withdraw excess 

contributions from your IRA and not include the amount 

withdrawn in your gross income.

Total contributions (other than rollover contributions) 

for 2013 to your IRA were not more than $5,500 

($6,500 if you are age 50 or older).

You did not take a deduction for the excess contribution being withdrawn.

The withdrawal can take place at any time, even after the 

due date, including extensions, for filing your tax return for 

the year.

Excess contribution deducted in an earlier year. If 

you deducted an excess contribution in an earlier year for 

which the total contributions were not more than the maximum deductible amount for that year (see the following table), you can still remove the excess from your traditional 

IRA and not include it in your gross income. To do this, file 

Form 1040X, Amended U.S. Individual Income Tax Return, for that year and do not deduct the excess contribution on the amended return. Generally, you can file an 

amended return within 3 years after you filed your return, 

or 2 years from the time the tax was paid, whichever is 

later.

Year(s) Contribution Limit Contribution limit 

if age 50 or older 

at the end of the 

year

2008 through 2012 $5,000 $6,000

2006 or 2007 $4,000 $5,000

2005 $4,000 $4,500

2002 through 2004 $3,000 $3,500

1997 through 2001 $2,000 —

before 1997 $2,250 —

Excess due to incorrect rollover information. If an excess contribution in your traditional IRA is the result of a 

rollover and the excess occurred because the information 

the plan was required to give you was incorrect, you can 

withdraw the excess contribution. The limits mentioned 

above are increased by the amount of the excess that is 

due to the incorrect information. You will have to amend 

your return for the year in which the excess occurred to 

correct the reporting of the rollover amounts in that year. 

Do not include in your gross income the part of the excess 

contribution caused by the incorrect information.

Deducting an Excess Contribution

in a Later Year

You cannot apply an excess contribution to an earlier year 

even if you contributed less than the maximum amount 

allowable for the earlier year. However, you may be able 

to apply it to a later year if the contributions for that later 

year are less than the maximum allowed for that year.

You can deduct excess contributions for previous years 

that are still in your traditional IRA. The amount you can 

deduct this year is the lesser of the following two amounts.

Your maximum IRA deduction for this year minus any 

amounts contributed to your traditional IRAs for this 

year.

The total excess contributions in your IRAs at the beginning of this year.

This method lets you avoid making a withdrawal. It 

does not, however, let you avoid the 6% tax on any excess contributions remaining at the end of a tax year.

To figure the amount of excess contributions for previous years that you can deduct this year, see Worksheet 

1-6 next.

Excess Contributions Deductible This 

Year

Use this worksheet to figure the amount of excess 

contributions from prior years you can deduct this year.

1. Maximum IRA deduction for the current 

year ................................ 1.

2. IRA contributions for the current 

year ................................ 2.

3. Subtract line 2 from line 1. If zero (0) or 

less, enter zero ....................... 3.

4. Excess contributions in IRA at beginning of 

year ................................ 4.

5. Enter the lesser of line 3 or line 4. This is 

the amount of excess contributions for 

previous years that you can deduct this 

year ................................ 5.

Example. Teri was entitled to contribute to her traditional IRA and deduct $1,000 in 2012 and $1,500 in 2013 

(the amounts of her taxable compensation for these 

years). For 2012, she actually contributed $1,400 but 

could deduct only $1,000. In 2012, $400 is an excess contribution subject to the 6% tax. However, she would not 

have to pay the 6% tax if she withdrew the excess (including any earnings) before the due date of her 2012 return. 

Because Teri did not withdraw the excess, she owes excise tax of $24 for 2012. To avoid the excise tax for 2013, 

she can correct the $400 excess amount from 2012 in 

2013 if her actual contributions are only $1,100 for 2013 

(the allowable deductible contribution of $1,500 minus the 

$400 excess from 2012 she wants to treat as a deductible 

contribution in 2013). Teri can deduct $1,500 in 2013 (the 

$1,100 actually contributed plus the $400 excess contribution from 2012). This is shown on Worksheet 1-6. Example—Illustrated next.

Worksheet 1-6.

Chapter 1 Traditional IRAs Page 55
Worksheet 1-6. Example—Illustrated

Use this worksheet to figure the amount of excess 

contributions from prior years you can deduct this year.

1. Maximum IRA deduction for the current 

year ................................ 1. 1,500

2. IRA contributions for the current 

year ................................ 2. 1,100

3. Subtract line 2 from line 1. If zero (0) or 

less, enter zero ....................... 3. 400

4. Excess contributions in IRA at beginning of 

year ................................ 4. 400

5. Enter the lesser of line 3 or line 4. This is 

the amount of excess contributions for 

previous years that you can deduct this 

year ................................ 5. 400

Closed tax year. A special rule applies if you incorrectly 

deducted part of the excess contribution in a closed tax 

year (one for which the period to assess a tax deficiency 

has expired). The amount allowable as a traditional IRA 

deduction for a later correction year (the year you contribute less than the allowable amount) must be reduced by 

the amount of the excess contribution deducted in the 

closed year.

To figure the amount of excess contributions for previous years that you can deduct this year if you incorrectly 

deducted part of the excess contribution in a closed tax 

year, see Worksheet 1-7 next.

Excess Contributions Deductible This 

Year if Any Were Deducted in a 

Closed Tax Year

Use this worksheet to figure the amount of excess 

contributions for prior years that you can deduct this year 

if you incorrectly deducted excess contributions in a 

closed tax year.

1. Maximum IRA deduction for the current 

year ................................ 1.

2. IRA contributions for the current 

year ................................ 2.

3. If line 2 is less than line 1, enter any excess 

contributions that were deducted in a 

closed tax year. Otherwise, enter zero 

(0) ................................. 3.

4. Subtract line 3 from line 1 .............. 4.

5. Subtract line 2 from line 4. If zero (0) or 

less, enter zero ....................... 5.

6. Excess contributions in IRA at beginning of 

year ................................ 6.

7. Enter the lesser of line 5 or line 6. This is 

the amount of excess contributions for 

previous years that you can deduct this 

year ................................ 7.

Worksheet 1-7.

Early Distributions

You must include early distributions of taxable amounts 

from your traditional IRA in your gross income. Early distributions are also subject to an additional 10% tax, as discussed later.

Early distributions defined. Early distributions generally are amounts distributed from your traditional IRA account or annuity before you are age 591

2, or amounts you 

receive when you cash in retirement bonds before you are 

age 591

2.

Age 591

2 Rule

Generally, if you are under age 591

2, you must pay a 10% 

additional tax on the distribution of any assets (money or 

other property) from your traditional IRA. Distributions before you are age 591

2 are called early distributions.

The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount.

A number of exceptions to this rule are discussed later 

under Exceptions. Also see Contributions Returned Before Due Date of Return, earlier.

You may have to pay a 25%, rather than a 10%, 

additional tax if you receive distributions from a 

SIMPLE IRA before you are age 591

2. See Additional Tax on Early Distributions under When Can You 

Withdraw or Use Assets? in chapter 3.

After age 591

2 and before age 7012. After you reach age 

591

2, you can receive distributions without having to pay 

the 10% additional tax. Even though you can receive distributions after you reach age 591

2, distributions are not required until you reach age 701

2. See When Must You Withdraw Assets? (Required Minimum Distributions), earlier.

Exceptions

There are several exceptions to the age 591

2 rule. Even if 

you receive a distribution before you are age 591

2, you 

may not have to pay the 10% additional tax if you are in 

one of the following situations.

You have unreimbursed medical expenses that are 

more than 10% (or 7.5% if you or your spouse was 

born before January 2, 1949) of your adjusted gross 

income.

The distributions are not more than the cost of your 

medical insurance due to a period of unemployment.

You are totally and permanently disabled.

You are the beneficiary of a deceased IRA owner.

You are receiving distributions in the form of an annuity.

The distributions are not more than your qualified 

higher education expenses.

CAUTION

!

Page 56 Chapter 1 Traditional IRAs
You use the distributions to buy, build, or rebuild a first 

home.

The distribution is due to an IRS levy of the qualified 

plan.

The distribution is a qualified reservist distribution.

Most of these exceptions are explained below.

Note. Distributions that are timely and properly rolled 

over, as discussed earlier, are not subject to either regular 

income tax or the 10% additional tax. Certain withdrawals 

of excess contributions after the due date of your return 

are also tax free and therefore not subject to the 10% additional tax. (See Excess Contributions Withdrawn After 

Due Date of Return, earlier.) This also applies to transfers 

incident to divorce, as discussed earlier under Can You 

Move Retirement Plan Assets.

Receivership distributions. Early distributions (with 

or without your consent) from savings institutions placed 

in receivership are subject to this tax unless one of the 

above exceptions applies. This is true even if the distribution is from a receiver that is a state agency.

Unreimbursed medical expenses. Even if you are under age 591

2, you do not have to pay the 10% additional 

tax on distributions that are not more than:

The amount you paid for unreimbursed medical expenses during the year of the distribution, minus

10% (or 7.5% if you or your spouse was born before 

January 2, 1949) of your adjusted gross income (defined next) for the year of the distribution.

You can only take into account unreimbursed medical expenses that you would be able to include in figuring a deduction for medical expenses on Schedule A (Form 

1040). You do not have to itemize your deductions to take 

advantage of this exception to the 10% additional tax.

Adjusted gross income. This is the amount on Form 

1040, line 38; Form 1040A, line 22; or Form 1040NR, 

line 37.

Medical insurance. Even if you are under age 591

2, you 

may not have to pay the 10% additional tax on distributions during the year that are not more than the amount 

you paid during the year for medical insurance for yourself, your spouse, and your dependents. You will not have 

to pay the tax on these amounts if all of the following conditions apply.

You lost your job.

You received unemployment compensation paid under any federal or state law for 12 consecutive weeks 

because you lost your job.

You receive the distributions during either the year 

you received the unemployment compensation or the 

following year.

You receive the distributions no later than 60 days after you have been reemployed.

Disabled. If you become disabled before you reach age 

591

2, any distributions from your traditional IRA because of 

your disability are not subject to the 10% additional tax.

You are considered disabled if you can furnish proof 

that you cannot do any substantial gainful activity because 

of your physical or mental condition. A physician must determine that your condition can be expected to result in 

death or to be of long, continued, and indefinite duration.

Beneficiary. If you die before reaching age 591

2, the assets in your traditional IRA can be distributed to your beneficiary or to your estate without either having to pay the 

10% additional tax.

However, if you inherit a traditional IRA from your deceased spouse and elect to treat it as your own (as discussed under What if You Inherit an IRA, earlier), any distribution you later receive before you reach age 591

2 may 

be subject to the 10% additional tax.

Annuity. You can receive distributions from your traditional IRA that are part of a series of substantially equal 

payments over your life (or your life expectancy), or over 

the lives (or the joint life expectancies) of you and your 

beneficiary, without having to pay the 10% additional tax, 

even if you receive such distributions before you are age 

591

2. You must use an IRS-approved distribution method 

and you must take at least one distribution annually for 

this exception to apply. The “required minimum distribution method,” when used for this purpose, results in the 

exact amount required to be distributed, not the minimum 

amount.

There are two other IRS-approved distribution methods 

that you can use. They are generally referred to as the 

“fixed amortization method” and the “fixed annuitization 

method.” These two methods are not discussed in this 

publication because they are more complex and generally 

require professional assistance. For information on these 

methods, see Revenue Ruling 2002-62, which is on 

page 710 of Internal Revenue Bulletin 2002-42 at 

www.irs.gov/pub/irs­irbs/irb02­42.pdf.

Recapture tax for changes in distribution method 

under equal payment exception. You may have to pay 

an early distribution recapture tax if, before you reach age 

591

2, the distribution method under the equal periodic payment exception changes (for reasons other than your 

death or disability). The tax applies if the method changes 

from the method requiring equal payments to a method 

that would not have qualified for the exception to the tax. 

The recapture tax applies to the first tax year to which the 

change applies. The amount of tax is the amount that 

would have been imposed had the exception not applied, 

plus interest for the deferral period.

You may have to pay the recapture tax if you do not receive the payments for at least 5 years under a method 

that qualifies for the exception. You may have to pay it 

even if you modify your method of distribution after you 

reach age 591

2. In that case, the tax applies only to payments distributed before you reach age 591

2.

Report the recapture tax and interest on line 4 of Form 

5329. Attach an explanation to the form. Do not write the 

Chapter 1 Traditional IRAs Page 57
explanation next to the line or enter any amount for the 

recapture on lines 1 or 3 of the form.

One-time switch. If you are receiving a series of substantially equal periodic payments, you can make a 

one-time switch to the required minimum distribution 

method at any time without incurring the additional tax. 

Once a change is made, you must follow the required minimum distribution method in all subsequent years.

Higher education expenses. Even if you are under age 

591

2, if you paid expenses for higher education during the 

year, part (or all) of any distribution may not be subject to 

the 10% additional tax. The part not subject to the tax is 

generally the amount that is not more than the qualified 

higher education expenses (defined next) for the year for 

education furnished at an eligible educational institution 

(defined below). The education must be for you, your 

spouse, or the children or grandchildren of you or your 

spouse.

When determining the amount of the distribution that is 

not subject to the 10% additional tax, include qualified 

higher education expenses paid with any of the following 

funds.

Payment for services, such as wages.

A loan.

A gift.

An inheritance given to either the student or the individual making the withdrawal.

A withdrawal from personal savings (including savings 

from a qualified tuition program).

Do not include expenses paid with any of the following 

funds.

Tax-free distributions from a Coverdell education savings account.

Tax-free part of scholarships and fellowships.

Pell grants.

Employer-provided educational assistance.

Veterans' educational assistance.

Any other tax-free payment (other than a gift or inheritance) received as educational assistance.

Qualified higher education expenses. Qualified 

higher education expenses are tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a student at an eligible educational institution. 

They also include expenses for special needs services incurred by or for special needs students in connection with 

their enrollment or attendance. In addition, if the individual 

is at least a half-time student, room and board are qualified higher education expenses.

Eligible educational institution. This is any college, 

university, vocational school, or other postsecondary educational institution eligible to participate in the student aid 

programs administered by the U.S. Department of Education. It includes virtually all accredited, public, nonprofit, 

and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be 

able to tell you if it is an eligible educational institution.

For more information, see chapter 9 of Publication 970, 

Tax Benefits for Education.

First home. Even if you are under age 591

2, you do not 

have to pay the 10% additional tax on up to $10,000 of 

distributions you receive to buy, build, or rebuild a first 

home. To qualify for treatment as a first-time homebuyer 

distribution, the distribution must meet all the following requirements.

1. It must be used to pay qualified acquisition costs (defined next) before the close of the 120th day after the 

day you received it.

2. It must be used to pay qualified acquisition costs for 

the main home of a first-time homebuyer (defined below) who is any of the following.

a. Yourself.

b. Your spouse.

c. Your or your spouse's child.

d. Your or your spouse's grandchild.

e. Your or your spouse's parent or other ancestor.

3. When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions 

cannot be more than $10,000.

If both you and your spouse are first­time homebuyers (defined later), each of you can receive 

distributions up to $10,000 for a first home without having to pay the 10% additional tax.

Qualified acquisition costs. Qualified acquisition 

costs include the following items.

Costs of buying, building, or rebuilding a home.

Any usual or reasonable settlement, financing, or 

other closing costs.

First-time homebuyer. Generally, you are a first-time 

homebuyer if you had no present interest in a main home 

during the 2-year period ending on the date of acquisition 

of the home which the distribution is being used to buy, 

build, or rebuild. If you are married, your spouse must also 

meet this no-ownership requirement.

Date of acquisition. The date of acquisition is the 

date that:

You enter into a binding contract to buy the main 

home for which the distribution is being used, or

The building or rebuilding of the main home for which 

the distribution is being used begins.

TIP

Page 58 Chapter 1 Traditional IRAs
If you received a distribution to buy, build, or rebuild a first home and the purchase or construction was canceled or delayed, you generally can 

contribute the amount of the distribution to an IRA within 

120 days of the distribution. This contribution is treated as 

a rollover contribution to the IRA.

Qualified reservist distributions. A qualified reservist 

distribution is not subject to the additional tax on early distributions.

Definition. A distribution you receive is a qualified reservist distribution if the following requirements are met.

You were ordered or called to active duty after September 11, 2001.

You were ordered or called to active duty for a period 

of more than 179 days or for an indefinite period because you are a member of a reserve component.

The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 

403(b) plan or a similar arrangement.

The distribution was made no earlier than the date of 

the order or call to active duty and no later than the 

close of the active duty period.

Reserve component. The term “reserve component” 

means the:

Army National Guard of the United States,

Army Reserve,

Naval Reserve,

Marine Corps Reserve,

Air National Guard of the United States,

Air Force Reserve,

Coast Guard Reserve, or

Reserve Corps of the Public Health Service.

Additional 10% tax

The additional tax on early distributions is 10% of the 

amount of the early distribution that you must include in 

your gross income. This tax is in addition to any regular income tax resulting from including the distribution in income.

Use Form 5329 to figure the tax. See the discussion of 

Form 5329, later, under Reporting Additional Taxes for information on filing the form.

Example. Tom Jones, who is 35 years old, receives a 

$3,000 distribution from his traditional IRA account. Tom 

does not meet any of the exceptions to the 10% additional 

tax, so the $3,000 is an early distribution. Tom never 

made any nondeductible contributions to his IRA. He must 

include the $3,000 in his gross income for the year of the 

distribution and pay income tax on it. Tom must also pay 

TIP

an additional tax of $300 (10% × $3,000). He files Form 

5329. See the filled-in Form 5329, later.

Early distributions of funds from a SIMPLE retirement account made within 2 years of beginning 

participation in the SIMPLE are subject to a 25%, 

rather than a 10%, early distributions tax.

Nondeductible contributions. The tax on early distributions does not apply to the part of a distribution that represents a return of your nondeductible contributions (basis).

Excess Accumulations

(Insufficient Distributions)

You cannot keep amounts in your traditional IRA indefinitely. Generally, you must begin receiving distributions by 

April 1 of the year following the year in which you reach 

age 701

2. The required minimum distribution for any year 

after the year in which you reach age 701

2 must be made 

by December 31 of that later year.

Tax on excess. If distributions are less than the required minimum distribution for the year, discussed earlier 

under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise 

tax for that year on the amount not distributed as required.

Reporting the tax. Use Form 5329 to report the tax on 

excess accumulations. See the discussion of Form 5329, 

later, under Reporting Additional Taxes, for more information on filing the form.

Request to waive the tax. If the excess accumulation is 

due to reasonable error, and you have taken, or are taking, steps to remedy the insufficient distribution, you can 

request that the tax be waived. If you believe you qualify 

for this relief, attach a statement of explanation and complete Form 5329 as instructed under Waiver of tax in the 

Instructions for Form 5329.

Exemption from tax. If you are unable to take required 

distributions because you have a traditional IRA invested 

in a contract issued by an insurance company that is in 

state insurer delinquency proceedings, the 50% excise 

tax does not apply if the conditions and requirements of 

Revenue Procedure 92-10 are satisfied. Those conditions 

and requirements are summarized below. Revenue Procedure 92-10 is in Cumulative Bulletin 1992-1. To obtain a 

copy of this revenue procedure, see Mail in chapter 5, 

How to Get Tax Help, later. You can also read the revenue procedure at most IRS offices, at many public libraries, and online at IRS.gov.

Conditions. To qualify for exemption from the tax, the 

assets in your traditional IRA must include an affected investment. Also, the amount of your required distribution 

must be determined as discussed earlier under When 

Must You Withdraw Assets? (Required Minimum Distributions).

Affected investment defined. Affected investment 

means an annuity contract or a guaranteed investment 

CAUTION

!

Chapter 1 Traditional IRAs Page 59
contract (with an insurance company) for which payments 

under the terms of the contract have been reduced or suspended because of state insurer delinquency proceedings 

against the contracting insurance company.

Requirements. If your traditional IRA (or IRAs) includes assets other than your affected investment, all traditional IRA assets, including the available portion of your 

affected investment, must be used to satisfy as much as 

possible of your IRA distribution requirement. If the affected investment is the only asset in your IRA, as much of 

the required distribution as possible must come from the 

available portion, if any, of your affected investment.

Page 60 Chapter 1 Traditional IRAs
Form 5329

Department of the Treasury 

Internal Revenue Service (99)

Additional Taxes on Qualified Plans 

(Including IRAs) and Other Tax-Favored Accounts

▶ Attach to Form 1040 or Form 1040NR. 

▶ Information about Form 5329 and its separate instructions is at www.irs.gov/form5329.

OMB No. 1545-0074

2013

Attachment 

Sequence No. 29

Name of individual subject to additional tax. If married ling jointly, see instructions. Your social security number 

Fill in Your Address Only 

If You Are Filing This 

Form by Itself and Not 

With Your Tax Return ▲

Home address (number and street), or P.O. box if mail is not delivered to your home Apt. no.

City, town or post ofce, state, and ZIP code. If you have a foreign address, also complete 

the spaces below (see instructions). If this is an amended 

return, check here ▶

Foreign country name Foreign province/state/county Foreign postal code

If you only owe the additional 10% tax on early distributions, you may be able to report this tax directly on Form 1040, line 58, or 

Form 1040NR, line 56, without ling Form 5329. See the instructions for Form 1040, line 58, or for Form 1040NR, line 56.

Part I Additional Tax on Early Distributions

Complete this part if you took a taxable distribution before you reached age 591⁄2 from a qualied retirement plan (including an 

IRA) or modied endowment contract (unless you are reporting this tax directly on Form 1040 or Form 1040NR—see above). You 

may also have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions or for 

certain Roth IRA distributions (see instructions).

1 Early distributions included in income. For Roth IRA distributions, see instructions . . . . . . 1 

2 Early distributions included on line 1 that are not subject to the additional tax (see instructions).

Enter the appropriate exception number from the instructions: . . . . . . . . . 2 

3 Amount subject to additional tax. Subtract line 2 from line 1 . . . . . . . . . . . . . 3 

4 Additional tax. Enter 10% (.10) of line 3. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 4 

Caution: If any part of the amount on line 3 was a distribution from a SIMPLE IRA, you may have 

to include 25% of that amount on line 4 instead of 10% (see instructions).

Part II Additional Tax on Certain Distributions From Education Accounts

Complete this part if you included an amount in income, on Form 1040 or Form 1040NR, line 21, from a Coverdell 

education savings account (ESA) or a qualied tuition program (QTP).

5 Distributions included in income from Coverdell ESAs and QTPs . . . . . . . . . . . . 5 

6 Distributions included on line 5 that are not subject to the additional tax (see instructions) . . . 6 

7 Amount subject to additional tax. Subtract line 6 from line 5 . . . . . . . . . . . . . 7 

8 Additional tax. Enter 10% (.10) of line 7. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 8 

Part III Additional Tax on Excess Contributions to Traditional IRAs

Complete this part if you contributed more to your traditional IRAs for 2013 than is allowable or you had an amount on line 

17 of your 2012 Form 5329.

9 Enter your excess contributions from line 16 of your 2012 Form 5329 (see instructions). If zero, go to line 15 9 

10 If your traditional IRA contributions for 2013 are less than your 

maximum allowable contribution, see instructions. Otherwise, enter -0- 10 

11 2013 traditional IRA distributions included in income (see instructions) . 11 

12 2013 distributions of prior year excess contributions (see instructions) . 12 

13 Add lines 10, 11, and 12 . . . . . . . . . . . . . . . . . . . . . . . . . 13 

14 Prior year excess contributions. Subtract line 13 from line 9. If zero or less, enter -0- . . . . . 14 

15 Excess contributions for 2013 (see instructions) . . . . . . . . . . . . . . . . . 15 

16 Total excess contributions. Add lines 14 and 15 . . . . . . . . . . . . . . . . . 16 

17 Additional tax. Enter 6% (.06) of the smaller of line 16 or the value of your traditional IRAs on December 31, 2013 

(including 2013 contributions made in 2014). Include this amount on Form 1040, line 58, or Form 1040NR, line 56 . 17 

Part IV Additional Tax on Excess Contributions to Roth IRAs

Complete this part if you contributed more to your Roth IRAs for 2013 than is allowable or you had an amount on line 25 of your 2012 Form 5329.

18 Enter your excess contributions from line 24 of your 2012 Form 5329 (see instructions). If zero, go to line 23 18 

19 If your Roth IRA contributions for 2013 are less than your maximum 

allowable contribution, see instructions. Otherwise, enter -0- . . . . 19 

20 2013 distributions from your Roth IRAs (see instructions) . . . . . 20 

21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . 21 

22 Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter -0-. . . . . 22 

23 Excess contributions for 2013 (see instructions) . . . . . . . . . . . . . . . . . 23 

24 Total excess contributions. Add lines 22 and 23 . . . . . . . . . . . . . . . . . 24 

25 Additional tax. Enter 6% (.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2013

(including 2013 contributions made in 2014). Include this amount on Form 1040, line 58, or Form 1040NR, line 56 25 

For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13329Q Form 5329 (2013) 

Tom Jones 004-00-0000

3000

3000

300

-0-

Chapter 1 Traditional IRAs Page 61
Available portion. The available portion of your affected investment is the amount of payments remaining after 

they have been reduced or suspended because of state 

insurer delinquency proceedings.

Make up of shortfall in distribution. If the payments 

to you under the contract increase because all or part of 

the reduction or suspension is canceled, you must make 

up the amount of any shortfall in a prior distribution because of the proceedings. You make up (reduce or eliminate) the shortfall with the increased payments you receive. 

You must make up the shortfall by December 31 of the 

calendar year following the year that you receive increased payments.

Reporting Additional Taxes

Generally, you must use Form 5329 to report the tax on 

excess contributions, early distributions, and excess accumulations. If you must file Form 5329, you cannot use 

Form 1040A, Form 1040EZ, or Form 1040NR-EZ.

Filing a tax return. If you must file an individual income 

tax return, complete Form 5329 and attach it to your Form 

1040 or Form 1040NR. Enter the total additional taxes 

due on Form 1040, line 58, or on Form 1040NR, line 56.

Not filing a tax return. If you do not have to file a return, 

but do have to pay one of the additional taxes mentioned 

earlier, file the completed Form 5329 with the IRS at the 

time and place you would have filed Form 1040 or Form 

1040NR. Be sure to include your address on page 1 and 

your signature and date on page 2. Enclose, but do not attach, a check or money order payable to the United States 

Treasury for the tax you owe, as shown on Form 5329. 

Write your social security number and “2013 Form 5329” 

on your check or money order.

Form 5329 not required. You do not have to use 

Form 5329 if either of the following situations exists. 

Distribution code 1 (early distribution) is correctly 

shown in box 7 of Form 1099-R. If you do not owe any 

other additional tax on a distribution, multiply the taxable part of the early distribution by 10% and enter the 

result on Form 1040, line 58, or on Form 1040NR, 

line 56. Put “No” to the left of the line to indicate that 

you do not have to file Form 5329. However, if you 

owe this tax and also owe any other additional tax on 

a distribution, do not enter this 10% additional tax directly on your Form 1040 or Form 1040NR. You must 

file Form 5329 to report your additional taxes.

If you rolled over part or all of a distribution from a 

qualified retirement plan, the part rolled over is not 

subject to the tax on early distributions.

2.

Roth IRAs

What's New for 2013

Roth IRA contribution limit. If contributions on your behalf are made only to Roth IRAs, your contribution limit for 

2013 will generally be the lesser of:

$5,500, or

Your taxable compensation for the year.

If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your 

contribution limit for 2013 will generally be the lesser of:

$6,500, or

Your taxable compensation for the year.

However, if your modified adjusted gross income (AGI) 

is above a certain amount, your contribution limit may be 

reduced.

For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this 

chapter.

Modified AGI limit for Roth IRA contributions increased. For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations.

Your filing status is married filing jointly or qualifying 

widow(er) and your modified AGI is at least $178,000. 

You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more.

Your filing status is single, head of household, or married filing separately and you did not live with your 

spouse at any time in 2013 and your modified AGI is 

at least $112,000. You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more.

Your filing status is married filing separately, you lived 

with your spouse at any time during the year, and your 

modified AGI is more than -0-. You cannot make a 

Roth IRA contribution if your modified AGI is $10,000 

or more.

See Can You Contribute to a Roth IRA? in this chapter.

Net Investment Income Tax. For purposes of the Net 

Investment Income Tax (NIIT), net investment income 

does not include distributions from a qualified retirement 

plan (for example, 401(a), 403(a), 403(b), 457(b) plans, 

and IRAs). However, these distributions are taken into account when determining the modified adjusted gross income threshold. Distributions from a nonqualified retirement plan are included in net investment income. See 

Page 62 Chapter 2 Roth IRAs
Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information.

What's New for 2014

Modified AGI limit for Roth IRA contributions increased. For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations.

Your filing status is married filing jointly or qualifying 

widow(er) and your modified AGI is at least $181,000. 

You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more.

Your filing status is single, head of household, or married filing separately and you did not live with your 

spouse at any time in 2014 and your modified AGI is 

at least $114,000. You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more.

Your filing status is married filing separately, you lived 

with your spouse at any time during the year, and your 

modified AGI is more than -0-. You cannot make a 

Roth IRA contribution if your modified AGI is $10,000 

or more.

Reminders

Deemed IRAs. For plan years beginning after 2002, a 

qualified employer plan (retirement plan) can maintain a 

separate account or annuity under the plan (a deemed 

IRA) to receive voluntary employee contributions. If the 

separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. An 

employee's account can be treated as a traditional IRA or 

a Roth IRA.

For this purpose, a “qualified employer plan” includes:

A qualified pension, profit-sharing, or stock bonus 

plan (section 401(a) plan),

A qualified employee annuity plan (section 403(a) 

plan),

A tax-sheltered annuity plan (section 403(b) plan), and

A deferred compensation plan (section 457 plan) 

maintained by a state, a political subdivision of a state, 

or an agency or instrumentality of a state or political 

subdivision of a state.

Designated Roth accounts. Designated Roth accounts 

are separate accounts under 401(k), 403(b), or 457(b) 

plans that accept elective deferrals that are referred to as 

Roth contributions. These elective deferrals are included 

in your income, but qualified distributions from these accounts are not included in your income. Designated Roth 

accounts are not IRAs and should not be confused with 

Roth IRAs. Contributions, up to their respective limits, can 

be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. A contribution to 

one does not impact your eligibility to contribute to the 

other. See Publication 575, for more information on 

designated Roth accounts.

Introduction

Regardless of your age, you may be able to establish and 

make nondeductible contributions to an individual retirement plan called a Roth IRA.

Contributions not reported. You do not report Roth IRA 

contributions on your return.

What Is a Roth IRA?

A Roth IRA is an individual retirement plan that, except as 

explained in this chapter, is subject to the rules that apply 

to a traditional IRA (defined next). It can be either an account or an annuity. Individual retirement accounts and 

annuities are described in chapter 1 under How Can a 

Traditional IRA Be Opened.

To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. A deemed IRA 

can be a Roth IRA, but neither a SEP IRA nor a SIMPLE 

IRA can be designated as a Roth IRA.

Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, 

qualified distributions (discussed later) are tax free. Contributions can be made to your Roth IRA after you reach 

age 701

2 and you can leave amounts in your Roth IRA as 

long as you live.

Traditional IRA. A traditional IRA is any IRA that is not a 

Roth IRA or SIMPLE IRA. Traditional IRAs are discussed 

in chapter 1.

When Can a Roth IRA Be 

Opened?

You can open a Roth IRA at any time. However, the time 

for making contributions for any year is limited. See When 

Can You Make Contributions, later under Can You Contribute to a Roth IRA.

Can You Contribute to

a Roth IRA?

Generally, you can contribute to a Roth IRA if you have 

taxable compensation (defined later) and your modified 

AGI (defined later) is less than:

$188,000 for married filing jointly or qualifying 

widow(er),

$127,000 for single, head of household, or married filing separately and you did not live with your spouse at 

any time during the year, and

Chapter 2 Roth IRAs Page 63
$10,000 for married filing separately and you lived 

with your spouse at any time during the year.

You may be able to claim a credit for contributions to your Roth IRA. For more information, see 

chapter 4.

Is there an age limit for contributions? Contributions 

can be made to your Roth IRA regardless of your age.

Can you contribute to a Roth IRA for your spouse?

You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison 

Spousal IRA limit discussed in chapter 1 under How Much 

Can Be Contributed, you file jointly, and your modified AGI 

is less than $188,000.

Compensation. Compensation includes wages, salaries, 

tips, professional fees, bonuses, and other amounts received for providing personal services. It also includes 

commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and 

separate maintenance payments. For more information, 

see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1.

Modified AGI. Your modified AGI for Roth IRA purposes 

is your adjusted gross income (AGI) as shown on your return with some adjustments. Use Worksheet 2-1 , later, to 

determine your modified AGI.

Do not subtract conversion income when figuring 

your other AGI­based phaseouts and taxable income, such as your deduction for medical and 

dental expenses. Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes.

How Much Can Be Contributed?

The contribution limit for Roth IRAs generally depends on 

whether contributions are made only to Roth IRAs or to 

both traditional IRAs and Roth IRAs.

Roth IRAs only. If contributions are made only to Roth 

IRAs, your contribution limit generally is the lesser of:

$5,500 ($6,500 if you are age 50 or older), or

Your taxable compensation.

However, if your modified AGI is above a certain 

amount, your contribution limit may be reduced, as explained later under Contribution limit reduced.

Roth IRAs and traditional IRAs. If contributions are 

made to both Roth IRAs and traditional IRAs established 

for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions 

were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. 

Employer contributions under a SEP or SIMPLE IRA plan 

do not affect this limit.

TIP

CAUTION

!

This means that your contribution limit is the lesser of:

$5,500 ($6,500 if you are age 50 or older) minus all 

contributions (other than employer contributions under 

a SEP or SIMPLE IRA plan) for the year to all IRAs 

other than Roth IRAs, or

Your taxable compensation minus all contributions 

(other than employer contributions under a SEP or 

SIMPLE IRA plan) for the year to all IRAs other than 

Roth IRAs.

However, if your modified AGI is above a certain 

amount, your contribution limit may be reduced, as explained below under Contribution limit reduced.

Simplified employee pensions (SEPs) are discussed in 

Publication 560. Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3.

Repayment of reservist distributions. You can repay 

qualified reservist distributions even if the repayments 

would cause your total contributions to the Roth IRA to be 

more than the general limit on contributions. However, the 

total repayments cannot be more than the amount of your 

distribution.

Note. If you make repayments of qualified reservist 

distributions to a Roth IRA, increase your basis in the Roth 

IRA by the amount of the repayment. For more information, see Qualified reservist repayments under How Much 

Can Be Contributed? in chapter 1.

Contribution limit reduced. If your modified AGI is 

above a certain amount, your contribution limit is gradually 

reduced. Use Table 2-1, later, to determine if this reduction applies to you.

Figuring the reduction. If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit.

Round your reduced contribution limit up to the 

nearest $10. If your reduced contribution limit is 

more than $0, but less than $200, increase the 

limit to $200.

Example. You are a 45-year-old, single individual with 

taxable compensation of $113,000. You want to make the 

maximum allowable contribution to your Roth IRA for 

2013. Your modified AGI for 2013 is $113,000. You have 

not contributed to any traditional IRA, so the maximum 

contribution limit before the modified AGI reduction is 

$5,500. You figure your reduced Roth IRA contribution of 

$5,140 as shown on Worksheet 2-2. Example—Illustrated, later.

When Can You Make Contributions?

You can make contributions to a Roth IRA for a year at 

any time during the year or by the due date of your return 

for that year (not including extensions).

TIP

Page 64 Chapter 2 Roth IRAs
Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes

Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes.

1. Enter your adjusted gross income from Form 1040, line 38; Form 1040A, 

line 22; or Form 1040NR, line 37 ........................................... 1.

2. Enter any income resulting from the conversion of an IRA (other than a 

Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, 

line 11b, or Form 1040NR, line 16b) and a rollover from a qualified 

retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 

1040A, line 12b, or Form 1040NR, line 17b) ............................... 2.

3. Subtract line 2 from line 1 ................................................... 3.

4. Enter any traditional IRA deduction from Form 1040, line 32; Form 

1040A, line 17; or Form 1040NR, line 32 ................................... 4.

5. Enter any student loan interest deduction from Form 1040, line 33; Form 

1040A, line 18; or Form 1040NR, line 33 .................................. 5.

6. Enter any tuition and fees deduction from Form 1040, line 34, or Form 

1040A, line 19 ................................................................ 6.

7. Enter any domestic production activities deduction from Form 1040, 

line 35, or Form 1040NR, line 34 ........................................... 7.

8. Enter any foreign earned income exclusion and/or housing exclusion 

from Form 2555, line 45, or Form 2555-EZ, line 18 ........................ 8.

9. Enter any foreign housing deduction from Form 2555, line 50 ............ 9.

10. Enter any excludable qualified savings bond interest from Form 8815, 

line 14 ........................................................................ 10.

11. Enter any excluded employer-provided adoption benefits from Form 

8839, line 28 ................................................................. 11.

12. Add the amounts on lines 3 through 11 .................................... 12.

13. Enter:

$188,000 if married filing jointly or qualifying widow(er),

$10,000 if married filing separately and you lived with your spouse at 

any time during the year, or

$127,000 for all others ......................... ........................ 13.

Is the amount on line 12 more than the amount on line 13?

If yes, see the note below.

If no, the amount on line 12 is your modified adjusted gross income

for Roth IRA purposes.

Note. If the amount on line 12 is more than the amount on line 13 and you have other income 

or loss items, such as social security income or passive activity losses, that are subject to 

AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your 

modified AGI for Roth IRA purposes. (If you receive social security benefits, use Worksheet 1

in Appendix B to refigure your AGI.) Then go to line 3 above in this Worksheet 2-1 to refigure 

your modified AGI. If you do not have other income or loss items subject to AGI-based 

phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on 

line 12 above.

Chapter 2 Roth IRAs Page 65
Table 2-1. Effect of Modified AGI on Roth IRA Contribution

This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross 

income (modified AGI).

IF you have taxable 

compensation

and your filing status is ... AND your modified AGI is ... THEN ...

married filing jointly or 

qualifying widow(er)

less than $178,000

you can contribute up to 

$5,500 ($6,500 if you are age 

50 or older) as explained under 

How Much Can Be Contributed.

at least $178,000

but less than $188,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced.

$188,000 or more you cannot contribute to a Roth 

IRA.

married filing separately and

you lived with your spouse at 

any

time during the year

zero (-0-)

you can contribute up to 

$5,500 ($6,500 if you are age 

50 or older) as explained under 

How Much Can Be Contributed.

more than zero (-0-)

but less than $10,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced.

$10,000 or more you cannot contribute to a Roth 

IRA.

single,

head of household,

 or married filing separately

and

you did not live with your 

spouse

at any time during the year

less than $112,000

you can contribute up to 

$5,500 ($6,500 if you are age 

50 or older) as explained under 

How Much Can Be Contributed.

at least $112,000

but less than $127,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced.

$127,000 or more you cannot contribute to a Roth 

IRA.

Page 66 Chapter 2 Roth IRAs
You can make contributions for 2013 by the due 

date (not including extensions) for filing your 

2013 tax return. This means that most people can 

make contributions for 2013 by April 15, 2014.

What if You Contribute Too Much?

A 6% excise tax applies to any excess contribution to a 

Roth IRA.

Excess contributions. These are the contributions to 

your Roth IRAs for a year that equal the total of:

1. Amounts contributed for the tax year to your Roth 

IRAs (other than amounts properly and timely rolled 

over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement 

plan, as described later) that are more than your conTIP

tribution limit for the year (explained earlier under 

How Much Can Be Contributed?), plus

2. Any excess contributions for the preceding year, reduced by the total of:

a. Any distributions out of your Roth IRAs for the 

year, plus

b. Your contribution limit for the year minus your contributions to all your IRAs for the year.

Withdrawal of excess contributions. For purposes 

of determining excess contributions, any contribution that 

is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an 

amount not contributed. This treatment only applies if any 

earnings on the contributions are also withdrawn. The 

earnings are considered earned and received in the year 

the excess contribution was made.

Determining Your Reduced Roth IRA Contribution Limit

Before using this worksheet, check Table 2­1, earlier, to determine whether or not your Roth IRA contribution limit is 

reduced. If it is, use this worksheet to determine how much it is reduced.

1. Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, 

line 12) .................................................................. 1.

2. Enter: 

$178,000 if filing a joint return or qualifying widow(er),

$-0- if married filing a separate return and you lived with your spouse 

at any time in 2013, or

$112,000 for all others ....................... ...................... 2.

3. Subtract line 2 from line 1 ................................................ 3.

4. Enter:

$10,000 if filing a joint return or qualifying widow(er) or married filing a 

separate return and you lived with your spouse at any time during the 

year, or

$15,000 for all others ....................... ....................... 4.

5. Divide line 3 by line 4 and enter the result as a decimal (rounded to at 

least three places). If the result is 1.000 or more, enter 1.000 ............ 5.

6. Enter the lesser of:

$5,500 ($6,500 if you are age 50 or older), or

Your taxable compensation .................... .................... 6.

7. Multiply line 5 by line 6 ................................................... 7.

8. Subtract line 7 from line 6. Round the result up to the nearest $10. If the 

result is less than $200, enter $200 ...................................... 8.

9. Enter contributions for the year to other IRAs ............................ 9.

10. Subtract line 9 from line 6 ................................................ 10.

11. Enter the lesser of line 8 or line 10. This is your reduced Roth IRA 

contribution limit ...................................................... 11.

Worksheet 2-2.

Chapter 2 Roth IRAs Page 67
If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still 

have the contribution returned to you within 6 months of 

the due date of your 2013 tax return, excluding extensions. If you do, file an amended return with “Filed pursuant to section 301.9100-2” written at the top. Report any 

related earnings on the amended return and include an 

explanation of the withdrawal. Make any other necessary 

changes on the amended return.

Applying excess contributions. If contributions to your 

Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the 

contributions for that later year are less than the maximum 

allowed for that year.

Can You Move Amounts

Into a Roth IRA?

You may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. You may be 

able to roll over amounts from a qualified retirement plan 

to a Roth IRA. You may be able to recharacterize contributions made to one IRA as having been made directly to 

a different IRA. You can roll amounts over from a 

designated Roth account or from one Roth IRA to another 

Roth IRA.

Conversions

You can convert a traditional IRA to a Roth IRA. The conversion is treated as a rollover, regardless of the conversion method used. Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into 

Another, apply to these rollovers. However, the 1-year 

waiting period does not apply.

Conversion methods. You can convert amounts from a 

traditional IRA to a Roth IRA in any of the following three 

ways.

Rollover. You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA 

within 60 days after the distribution.

Trustee-to-trustee transfer. You can direct the 

trustee of the traditional IRA to transfer an amount 

from the traditional IRA to the trustee of the Roth IRA.

Same trustee transfer. If the trustee of the traditional 

IRA also maintains the Roth IRA, you can direct the 

trustee to transfer an amount from the traditional IRA 

to the Roth IRA.

Worksheet 2-2. Example—Illustrated

Before using this worksheet, check Table 2­1, earlier, to determine whether or not your Roth IRA contribution limit is 

reduced. If it is, use this worksheet to determine how much it is reduced.

1. Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) .............. 1. 113,000

2. Enter: 

$178,000 if filing a joint return or qualifying widow(er),

$-0- if married filing a separate return and you lived with your spouse at any time in 

2013, or

$112,000 for all others ......................... ......................... 2. 112,000

3. Subtract line 2 from line 1 .................................................... 3. 1,000

4. Enter:

$10,000 if filing a joint return or qualifying widow(er) or married filing a separate return 

and you lived with your spouse at any time during the year, or

$15,000 for all others ......................... ......................... 4. 15,000

5. Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). 

If the result is 1.000 or more, enter 1.000 ........................................ 5. .067

6. Enter the lesser of:

$5,500 ($6,500 if you are age 50 or older), or

Your taxable compensation ....................... ...................... 6. 5,500

7. Multiply line 5 by line 6 ....................................................... 7. 369

8. Subtract line 7 from line 6. Round the result up to the nearest $10. If the result is less than 

$200, enter $200 ........................................................... 8. 5,140

9. Enter contributions for the year to other IRAs .................................... 9. 0

10. Subtract line 9 from line 6 .................................................... 10. 5,500

11. Enter the lesser of line 8 or line 10. This is your reduced Roth IRA 

contribution limit .......................................................... 11. 5,140

Page 68 Chapter 2 Roth IRAs
Same trustee. Conversions made with the same 

trustee can be made by redesignating the traditional IRA 

as a Roth IRA, rather than opening a new account or issuing a new contract.

Income. You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth 

IRA. These amounts are normally included in income on 

your return for the year that you converted them from a 

traditional IRA to a Roth IRA.

If you must include any amount in your gross income, you may have to increase your withholding 

or make estimated tax payments. See Publication 

505, Tax Withholding and Estimated Tax.

More information. For more information on conversions, 

see Converting From Any Traditional IRA Into a Roth IRA 

in chapter 1.

Rollover From Employer's Plan Into a 

Roth IRA

You can roll over into a Roth IRA all or part of an eligible 

rollover distribution you receive from your (or your deceased spouse's):

Employer's qualified pension, profit-sharing, or stock 

bonus plan (including a 401(k) plan);

Annuity plan;

Tax-sheltered annuity plan (section 403(b) plan); or

Governmental deferred compensation plan (section 

457 plan).

Any amount rolled over is subject to the same rules for 

converting a traditional IRA into a Roth IRA. See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. 

Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement 

plan.

Rollover methods. You can roll over amounts from a 

qualified retirement plan to a Roth IRA in one of the following ways.

Rollover. You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a 

Roth IRA within 60 days after the distribution. Since 

the distribution is paid directly to you, the payer generally must withhold 20% of it.

Direct rollover option. Your employer's qualified 

plan must give you the option to have any part of an 

eligible rollover distribution paid directly to a Roth IRA. 

Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee 

of the Roth IRA.

Rollover by nonspouse beneficiary. If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligiCAUTION

!

ble rollover distribution from one of the types of plans 

listed above into a Roth IRA. You must make the rollover 

by a direct trustee-to-trustee transfer into an inherited 

Roth IRA.

You will determine your required minimum distributions 

in years after you make the rollover based on whether the 

employee died before his or her required beginning date 

for taking distributions from the plan. For more information, see Distributions after the employee’s death under 

Tax on Excess Accumulation in Publication 575.

Income. You must include in your gross income distributions from a qualified retirement plan that you would have 

had to include in income if you had not rolled them over 

into a Roth IRA. You do not include in gross income any 

part of a distribution from a qualified retirement plan that is 

a return of contributions (after-tax contributions) to the 

plan that were taxable to you when paid. These amounts 

are normally included in income on your return for the year 

of the rollover from the qualified employer plan to a Roth 

IRA.

If you must include any amount in your gross income, you may have to increase your withholding 

or make estimated tax payments. See Publication 

505, Tax Withholding and Estimated Tax.

For more information on eligible rollover distributions 

from qualified retirement plans and withholding, see Rollover From Employer's Plan Into an IRA in chapter 1.

Military Death Gratuities and 

Servicemembers' Group Life 

Insurance (SGLI) Payments

If you received a military death gratuity or SGLI payment 

with respect to a death from injury that occurred after October 6, 2001, you can contribute (roll over) all or part of 

the amount received to your Roth IRA. The contribution is 

treated as a qualified rollover contribution.

The amount you can roll over to your Roth IRA cannot 

exceed the total amount that you received reduced by any 

part of that amount that was contributed to a Coverdell 

ESA or another Roth IRA. Any military death gratuity or 

SGLI payment contributed to a Roth IRA is disregarded 

for purposes of the 1-year waiting period between rollovers.

The rollover must be completed before the end of the 

1-year period beginning on the date you received the payment.

The amount contributed to your Roth IRA is treated as 

part of your cost basis (investment in the contract) in the 

Roth IRA that is not taxable when distributed.

Rollover From a Roth IRA

You can withdraw, tax free, all or part of the assets from 

one Roth IRA if you contribute them within 60 days to another Roth IRA. Most of the rules for rollovers, described 

in chapter 1 under Rollover From One IRA Into Another, 

CAUTION

!

Chapter 2 Roth IRAs Page 69
apply to these rollovers. However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers.

A rollover from a Roth IRA to an employer retirement 

plan is not allowed.

A rollover from a designated Roth account can only be 

made to another designated Roth account or to a Roth 

IRA.

If you roll over an amount from one Roth IRA to another 

Roth IRA, the 5-year period used to determine qualified 

distributions does not change. The 5-year period begins 

with the first taxable year for which the contribution was 

made to the initial Roth IRA. See What are Qualified Distributions, later.

Rollover of Exxon Valdez Settlement 

Income

If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of 

the amount received to an eligible retirement plan which 

includes a Roth IRA. The rules for contributing qualified 

settlement income to a Roth IRA are the same as the rules 

for contributing qualified settlement income to a traditional 

IRA with the following exception. Qualified settlement income that is contributed to a Roth IRA, or to a designated 

Roth account, will be:

Included in your taxable income for the year the qualified settlement income was received, and

Treated as part of your cost basis (investment in the 

contract) in the Roth IRA that is not taxable when distributed.

For more information, see Rollover of Exxon Valdez 

Settlement Income in chapter 1.

Rollover of Airline Payments

If you are a qualified airline employee (defined next), you 

may contribute any portion of an airline payment (defined 

below) you receive to a Roth IRA. The contribution must 

be made within 180 days from the date you received the 

payment. The contribution will be treated as a qualified 

rollover contribution. The rollover contribution is included 

in income to the extent it would be included in income if it 

were not part of the rollover contribution. Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount 

you can contribute to your Roth IRA.

Qualified airline employee. A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the 

carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act 

of 2006. These provisions also apply to surviving spouses 

of qualified airline employees.

Airline payment. An airline payment is any payment of 

money or other property that is paid to a qualified airline 

employee from a commercial airline carrier. The payment 

also must be made both:

Under the approval of an order of federal bankruptcy 

court in a case filed after September 11, 2001, and 

before January 1, 2007, and

In respect of the qualified airline employee’s interest in 

a bankruptcy claim against the airline carrier, any note 

of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to 

pay a lump sum amount.

Any reduction in the airline payment amount on account of 

employment taxes shall be disregarded when figuring the 

amount you can roll over to your traditional IRA. Also, an 

airline payment shall not include any amount payable on 

the basis of the airline carrier’s future earnings or profits.

Are Distributions Taxable?

You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). You also do not include 

distributions from your Roth IRA that you roll over tax free 

into another Roth IRA. You may have to include part of 

other distributions in your income. See Ordering Rules for 

Distributions, later.

Basis of distributed property. The basis of property 

distributed from a Roth IRA is its fair market value (FMV) 

on the date of distribution, whether or not the distribution 

is a qualified distribution.

Withdrawals of contributions by due date. If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in 

which you made the contribution, the contributions are 

treated as if you never made them. If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. The withdrawal of contributions is tax free, but you must include 

the earnings on the contributions in income for the year in 

which you made the contributions.

What Are Qualified Distributions?

A qualified distribution is any payment or distribution from 

your Roth IRA that meets the following requirements.

1. It is made after the 5-year period beginning with the 

first taxable year for which a contribution was made to 

a Roth IRA set up for your benefit, and

2. The payment or distribution is:

a. Made on or after the date you reach age 591

2,

b. Made because you are disabled (defined earlier),

c. Made to a beneficiary or to your estate after your 

death, or

Page 70 Chapter 2 Roth IRAs
d. One that meets the requirements listed under First 

home under Exceptions in chapter 1 (up to a 

$10,000 lifetime limit).

Additional Tax on Early Distributions

If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early 

distributions as explained in the following paragraphs.

Distributions of conversion and certain rollover contributions within 5­year period. If, within the 5-year period starting with the first day of your tax year in which you 

convert an amount from a traditional IRA or rollover an 

amount from a qualified retirement plan to a Roth IRA, you 

take a distribution from a Roth IRA, you may have to pay 

the 10% additional tax on early distributions. You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over 

(the conversion or rollover contribution) that you had to include in income (recapture amount). A separate 5-year 

period applies to each conversion and rollover. See Ordering Rules for Distributions, later, to determine the recapture amount, if any.

The 5-year period used for determining whether the 

10% early distribution tax applies to a distribution from a 

conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining 

whether a distribution is a qualified distribution. See What 

Are Qualified Distributions, earlier.

For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a 

regular contribution for 2012 on the same date, the 5-year 

period for the conversion begins January 1, 2013, while 

the 5-year period for the regular contribution begins on 

January 1, 2012.

Unless one of the exceptions listed later applies, you 

must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover 

contribution that you had to include in income because of 

the conversion or rollover.

You must pay the 10% additional tax in the year of the 

distribution, even if you had included the conversion or 

rollover contribution in an earlier year. You also must pay 

the additional tax on any portion of the distribution attributable to earnings on contributions.

Other early distributions. Unless one of the exceptions 

listed below applies, you must pay the 10% additional tax 

on the taxable part of any distributions that are not qualified distributions.

Exceptions. You may not have to pay the 10% additional 

tax in the following situations.

You have reached age 591

2.

You are totally and permanently disabled.

You are the beneficiary of a deceased IRA owner.

You use the distribution to buy, build, or rebuild a first 

home.

The distributions are part of a series of substantially 

equal payments.

You have unreimbursed medical expenses that are 

more than 10% (or 7.5% if you or your spouse was 

born before January 2, 1949) of your adjusted gross 

income (defined earlier) for the year.

You are paying medical insurance premiums during a 

period of unemployment.

The distributions are not more than your qualified 

higher education expenses.

The distribution is due to an IRS levy of the qualified 

plan.

The distribution is a qualified reservist distribution.

Most of these exceptions are discussed earlier in chapter 1 under Early Distributions.

Chapter 2 Roth IRAs Page 71
Figure 2-1. Is the Distribution From Your Roth IRA a Qualified Distribution?

Start Here

No Has it been at least 5 years from the beginning of the

year for which you rst set up and contributed to a

Roth IRA?

Were you at least 591⁄2 years old at the time of the

distribution?

Is the distribution being used to buy or rebuild a rst

home as explained in First Home under Early

Distributions in chapter 1?

Is the distribution due to your being disabled (dened

under Early Distributions in chapter 1)?

No

Was the distribution made to your beneciary or your

estate after your death?

The distribution from the Roth IRA is a qualied

distribution. It is not subject to tax or penalty.

The distribution from the Roth IRA is

not a qualied distribution. The

portion of the distribution allocable

to earnings may be subject to tax

and it may be subject to the 10%

additional tax.

Yes

Yes

No

No

Yes

Yes

Yes

No

Page 72 Chapter 2 Roth IRAs
Ordering Rules for Distributions

If you receive a distribution from your Roth IRA that is not 

a qualified distribution, part of it may be taxable. There is a 

set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed 

from your Roth IRA. For these purposes, disregard the 

withdrawal of excess contributions and the earnings on 

them (discussed earlier under What if You Contribute Too 

Much). Order the distributions as follows.

1. Regular contributions.

2. Conversion and rollover contributions, on a first-in, 

first-out basis (generally, total conversions and rollovers from the earliest year first). See Aggregation 

(grouping and adding) rules, later. Take these conversion and rollover contributions into account as follows:

a. Taxable portion (the amount required to be included in gross income because of the conversion or 

rollover) first, and then the

b. Nontaxable portion.

3. Earnings on contributions.

Disregard rollover contributions from other Roth IRAs for 

this purpose.

Aggregation (grouping and adding) rules. Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them 

together as follows.

Add all distributions from all your Roth IRAs during the 

year together.

Add all regular contributions made for the year (including contributions made after the close of the year, but 

before the due date of your return) together. Add this 

total to the total undistributed regular contributions 

made in prior years.

Add all conversion and rollover contributions made 

during the year together. For purposes of the ordering 

rules, in the case of any conversion or rollover in 

which the conversion or rollover distribution is made in 

2013 and the conversion or rollover contribution is 

made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or 

rollover contributions made in 2014.

Add any recharacterized contributions that end up in a 

Roth IRA to the appropriate contribution group for the year 

that the original contribution would have been taken into 

account if it had been made directly to the Roth IRA.

Disregard any recharacterized contribution that ends 

up in an IRA other than a Roth IRA for the purpose of 

grouping (aggregating) both contributions and distributions. Also disregard any amount withdrawn to correct an 

excess contribution (including the earnings withdrawn) for 

this purpose.

Example. On October 15, 2009, Justin converted all 

$80,000 in his traditional IRA to his Roth IRA. His Forms 

8606 from prior years show that $20,000 of the amount 

converted is his basis.

Justin included $60,000 ($80,000 − $20,000) in his 

gross income.

On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. On November 8, 2013, at 

age 60, Justin took a $7,000 distribution from his Roth 

IRA.

The first $5,000 of the distribution is a return of Justin's 

regular contribution and is not includible in his income.

The next $2,000 of the distribution is not includible in 

income because it was included previously.

Figuring your recapture amount. If you had an early 

distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture 

Amount—Allocation Chart, later.

Amount to include on Form 5329, line 1. Include on 

line 1 of your 2013 Form 5329 the following four amounts 

from the Recapture Amount—Allocation Chart that you filled out.

The amount you allocated to line 20 of your 2013 

Form 8606.

The amount(s) allocated to your 2009 through 2013 

Forms 8606, line 18, and your 2010 Form 8606, 

line 23.

The amount(s) allocated to your 2009, 2011, 2012, 

and 2013 Forms 1040, line 16b; Forms 1040A, 

line 12b; and Forms 1040NR, line 17b.

The amount from your 2013 Form 8606, line 25.

Also, include any amount you allocated to line 20 of 

your 2013 Form 8606 on your 2013 Form 5329, line 2, 

and enter exception number 09.

Example. Ishmael, age 32, opened a Roth IRA in 

2000. He made the maximum contributions to it every 

year. In addition, he made the following transactions into 

his Roth IRA.

In 2005, he converted $10,000 from his traditional IRA 

into his Roth IRA. He filled out a 2005 Form 8606 and 

attached it with his 2005 Form 1040. He entered $0 on 

line 17 of Form 8606 because he took a deduction for 

all the contributions to the traditional IRA, therefore he 

has no basis. He entered $10,000 on line 18 of Form 

8606.

In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he 

changed jobs. He used a 2011 Form 1040 to file his 

taxes. He entered $20,000 on line 16a of Form 1040 

because that was the amount reported in box 1 of his 

2011 Form 1099-R. Box 5 of his 2011 Form 1099-R 

reported $0 since he did not make any after-tax contributions to the qualified retirement plan. He entered 

$20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011.

The total balance in his Roth IRA as of January 1, 2013 

was $105,000 ($50,000 in contributions from 2000 

through 2012 + $10,000 from the 2005 conversion + 

Chapter 2 Roth IRAs Page 73
$20,000 from the 2011 rollover + $25,000 from earnings). 

He has not taken any early distribution from his Roth IRA 

before 2013. In 2013, he made the maximum contribution 

of $5,500 to his Roth IRA.

In August of 2013, he took a $85,500 early distribution 

from his Roth IRA to use as a down payment on the purchase of his first home. See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. Based 

on his allocation, he would enter $20,000 on his 2013 

Form 5329, line 1 (see Amount to include on Form 5329, 

line 1, above). He should also report $10,000 on his 2013 

Form 5329, line 2, and enter exception 09 since that 

amount is not subject to the 10% additional tax on early 

distributions.

Recapture Amount—Allocation Chart

Enter the amount from your 2013 Form 8606, 

line 19 ......................................

Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below.

You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the 

extent a prior year distribution was not allocable to the amount). The maximum amount you can enter on each line below is the amount entered on 

the referenced lines of the form for that year. Note. Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. See the 

Example, earlier.

Tax Year Your Form

2013 Form 8606, line 20 ................. Form 8606, line 22 .................

1998 Form 8606, line 16 ................. Form 8606, line 15 .................

1999 Form 8606, line 16 ................. Form 8606, line 15 .................

2000 Form 8606, line 16 ................. Form 8606, line 15 .................

2001 Form 8606, line 18 ................. Form 8606, line 17 .................

2002 Form 8606, line 18 ................. Form 8606, line 17 .................

2003 Form 8606, line 18 ................. Form 8606, line 17 .................

2004 Form 8606, line 18 ................. Form 8606, line 17 .................

2005 Form 8606, line 18 ................. Form 8606, line 17 .................

2006 Form 8606, line 18 ................. Form 8606, line 17 .................

2007 Form 8606, line 18 ................. Form 8606, line 17 .................

2008 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2009 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2010 Form 8606, lines 18 and 23 .......... Form 8606, lines 17 and 22 ..........

2011 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2012 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2013 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2013 Form 8606, line 25 .................

*Only include those amounts rolled over to a Roth IRA.

**Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA.

Page 74 Chapter 2 Roth IRAs
How Do You Figure the Taxable Part?

To figure the taxable part of a distribution that is not a 

qualified distribution, complete Form 8606, Part III.

Must You Withdraw or Use 

Assets?

You are not required to take distributions from your Roth 

IRA at any age. The minimum distribution rules that apply 

to traditional IRAs do not apply to Roth IRAs while the 

owner is alive. However, after the death of a Roth IRA 

Illustrated Recapture Amount—Allocation Chart

Enter the amount from your 2013 Form 8606, 

line 19 ......................................

$85,500

Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below.

You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the 

extent a prior year distribution was not allocable to the amount). The maximum amount you can enter on each line below is the amount entered on 

the referenced lines of the form for that year. Note. Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. See the 

Example, earlier.

Tax Year Your Form

2013 Form 8606, line 20 ................. $10,000 Form 8606, line 22 ................. $55,500

1998 Form 8606, line 16 ................. Form 8606, line 15 .................

1999 Form 8606, line 16 ................. Form 8606, line 15 .................

2000 Form 8606, line 16 ................. Form 8606, line 15 .................

2001 Form 8606, line 18 ................. Form 8606, line 17 .................

2002 Form 8606, line 18 ................. Form 8606, line 17 .................

2003 Form 8606, line 18 ................. Form 8606, line 17 .................

2004 Form 8606, line 18 ................. Form 8606, line 17 .................

2005 Form 8606, line 18 ................. $10,000 Form 8606, line 17 ................. $­0­

2006 Form 8606, line 18 ................. Form 8606, line 17 .................

2007 Form 8606, line 18 ................. Form 8606, line 17 .................

2008 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2009 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2010 Form 8606, lines 18 and 23 .......... Form 8606, lines 17 and 22 ..........

2011 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................ $10,000

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2012 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2013 Form 8606, line 18 

and 

Form 1040, line 16b; Form 1040A, 

line 12b; or Form 1040NR, 

line 17b* ........................

Form 8606, line 17 

and 

Form 1040, line 16a; Form 1040A, 

line 12a; or Form 1040NR, 

line 17a** .......................

2013 Form 8606, line 25 .................

*Only include those amounts rolled over to a Roth IRA.

**Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA.

Chapter 2 Roth IRAs Page 75
owner, certain of the minimum distribution rules that apply 

to traditional IRAs also apply to Roth IRAs as explained 

later under Distributions After Owner's Death.

Minimum distributions. You cannot use your Roth 

IRA to satisfy minimum distribution requirements for your 

traditional IRA. Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. See 

Distributions to beneficiaries, later.

Recognizing Losses on Investments

If you have a loss on your Roth IRA investment, you can 

recognize the loss on your income tax return, but only 

when all the amounts in all of your Roth IRA accounts 

have been distributed to you and the total distributions are 

less than your unrecovered basis.

Your basis is the total amount of contributions in your 

Roth IRAs.

You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that 

applies to certain miscellaneous itemized deductions on 

Schedule A (Form 1040). Any such losses are added 

back to taxable income for purposes of calculating the alternative minimum tax.

Distributions After Owner's Death

If a Roth IRA owner dies, the minimum distribution rules 

that apply to traditional IRAs apply to Roth IRAs as though 

the Roth IRA owner died before his or her required beginning date. See When Can You Withdraw or Use Assets? 

in chapter 1.

Distributions to beneficiaries. Generally, the entire interest in the Roth IRA must be distributed by the end of 

the fifth calendar year after the year of the owner's death 

unless the interest is payable to a designated beneficiary 

over the life or life expectancy of the designated beneficiary. (See When Must You Withdraw Assets? (Required 

Minimum Distributions) in chapter 1.)

If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before 

the end of the calendar year following the year of death. 

Distributions from another Roth IRA cannot be substituted 

for these distributions unless the other Roth IRA was inherited from the same decedent.

If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have 

reached age 701

2 or treat the Roth IRA as his or her own.

Combining with other Roth IRAs. A beneficiary can 

combine an inherited Roth IRA with another Roth IRA 

maintained by the beneficiary only if the beneficiary either:

Inherited the other Roth IRA from the same decedent, 

or

Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her 

own IRA.

Distributions that are not qualified distributions. If 

a distribution to a beneficiary is not a qualified distribution, 

it is generally includible in the beneficiary's gross income 

in the same manner as it would have been included in the 

owner's income had it been distributed to the IRA owner 

when he or she was alive.

If the owner of a Roth IRA dies before the end of:

The 5-year period beginning with the first taxable year 

for which a contribution was made to a Roth IRA set 

up for the owner's benefit, or

The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover 

from a qualified retirement plan to a Roth IRA,

each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. See Ordering Rules for Distributions, earlier in this chapter under 

Are Distributions Taxable. 

Example. When Ms. Hibbard died in 2013, her Roth 

IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and 

earnings of $2,000. No distributions had been made from 

her IRA. She had no basis in the conversion contribution 

in 2009.

When she established this Roth IRA (her first) in 2009, 

she named each of her four children as equal beneficiaries. Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. An immediate distribution of $4,000 to each child will be treated as $1,000 

from regular contributions, $2,500 from conversion contributions, and $500 from earnings.

In this case, because the distributions are made before 

the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 

2013. The 10% additional tax on early distributions does 

not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner.

If distributions from an inherited Roth IRA are less 

than the required minimum distribution for the 

year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may 

have to pay a 50% excise tax for that year on the amount 

not distributed as required. For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in 

Penalties or Additional Taxes? in chapter 1. If this applies 

to you, substitute “Roth IRA” for “traditional IRA” in that 

discussion.

CAUTION

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Page 76 Chapter 2 Roth IRAs
3.

Savings Incentive Match 

Plans for Employees 

(SIMPLE)

Introduction

This chapter is for employees who need information about 

savings incentive match plans for employees (SIMPLE 

plans). It explains what a SIMPLE plan is, contributions to 

a SIMPLE plan, and distributions from a SIMPLE plan.

Under a SIMPLE plan, SIMPLE retirement accounts for 

participating employees can be set up either as:

Part of a 401(k) plan, or

A plan using IRAs (SIMPLE IRA).

This chapter only discusses the SIMPLE plan rules that 

relate to SIMPLE IRAs. See chapter 3 of Publication 560 

for information on any special rules for SIMPLE plans that 

do not use IRAs.

If your employer maintains a SIMPLE plan, you 

must be notified, in writing, that you can choose 

the financial institution that will serve as trustee 

for your SIMPLE IRA and that you can roll over or transfer 

your SIMPLE IRA to another financial institution. See Rollovers and Transfers Exception, later under When Can 

You Withdraw or Use Assets.

What Is a SIMPLE Plan?

A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) 

can set up for the benefit of their employees. See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. 

A SIMPLE plan is a written agreement (salary reduction 

agreement) between you and your employer that allows 

you, if you are an eligible employee (including a self-employed individual), to choose to:

Reduce your compensation (salary) by a certain percentage each pay period, and

Have your employer contribute the salary reductions 

to a SIMPLE IRA on your behalf. These contributions 

are called salary reduction contributions.

All contributions under a SIMPLE IRA plan must be 

made to SIMPLE IRAs, not to any other type of IRA. The 

SIMPLE IRA can be an individual retirement account or an 

individual retirement annuity, described in chapter 1. 

TIP

Contributions are made on behalf of eligible employees. 

(See Eligible Employees below.) Contributions are also 

subject to various limits. (See How Much Can Be Contributed on Your Behalf, later.)

In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. See How Are Contributions Made, 

later.

You may be able to claim a credit for contributions to your SIMPLE plan. For more information, 

see chapter 4.

Eligible Employees

You must be allowed to participate in your employer's 

SIMPLE plan if you:

Received at least $5,000 in compensation from your 

employer during any 2 years prior to the current year, 

and

Are reasonably expected to receive at least $5,000 in 

compensation during the calendar year for which contributions are made.

Self­employed individual. For SIMPLE plan purposes, 

the term employee includes a self-employed individual 

who received earned income.

Excludable employees. Your employer can exclude the 

following employees from participating in the SIMPLE 

plan.

Employees whose retirement benefits are covered by 

a collective bargaining agreement (union contract).

Employees who are nonresident aliens and received 

no earned income from sources within the United 

States.

Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction 

had not occurred during the year.

Compensation. For purposes of the SIMPLE plan rules, 

your compensation for a year generally includes the following amounts.

Wages, tips, and other pay from your employer that is 

subject to income tax withholding.

Deferred amounts elected under any 401(k) plans, 

403(b) plans, government (section 457) plans, SEP 

plans, and SIMPLE plans.

Self­employed individual compensation. For purposes of the SIMPLE plan rules, if you are self-employed, 

your compensation for a year is your net earnings from 

self-employment (Schedule SE (Form 1040), Section A, 

line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf.

For these purposes, net earnings from self-employment 

include services performed while claiming exemption from 

TIP

Chapter 3 Savings Incentive Match Plans for Employees (SIMPLE) Page 77
self-employment tax as a member of a group 

conscientiously opposed to social security benefits.

How Are Contributions Made?

Contributions under a salary reduction agreement are 

called salary reduction contributions. They are made on 

your behalf by your employer. Your employer must also 

make either matching contributions or nonelective contributions.

Salary reduction contributions. During the 60-day period before the beginning of any year, and during the 

60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if 

your employer offers this choice). You can choose to cancel the election at any time during the year.

Salary reduction contributions are also referred to as 

“elective deferrals.”

Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be 

Contributed on Your Behalf, later.

Matching contributions. Unless your employer chooses 

to make nonelective contributions, your employer must 

make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. See 

How Much Can Be Contributed on Your Behalf below. 

These contributions are in addition to the salary reduction 

contributions and must be made to the SIMPLE IRAs of all 

eligible employees (defined earlier) who chose salary reductions. These contributions are referred to as matching 

contributions.

Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions.

Nonelective contributions. Instead of making matching 

contributions, your employer may be able to choose to 

make nonelective contributions on behalf of all eligible 

employees. These nonelective contributions must be 

made on behalf of each eligible employee who has at 

least $5,000 of compensation from your employer, 

whether or not the employee chose salary reductions.

One of the requirements your employer must satisfy is 

notifying the employees that the election was made. For 

other requirements that your employer must satisfy, see 

chapter 3 of Publication 560.

How Much Can Be Contributed 

on Your Behalf?

The limits on contributions to a SIMPLE IRA vary with the 

type of contribution that is made.

Salary reduction contributions limit. Salary reduction 

contributions (employee-chosen contributions or elective 

deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. The 

limitation remains at $12,000 for 2014.

If you are a participant in any other employer 

plans during 2013 and you have elective salary 

reductions or deferred compensation under those 

plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 

for 2013 on exclusions of salary reductions and other 

elective deferrals. You, not your employer, are responsible for monitoring compliance with these limits.

Additional elective deferrals can be contributed to your 

SIMPLE plan if:

You reached age 50 by the end of 2013, and

No other elective deferrals can be made for you to the 

plan for the year because of limits or restrictions, such 

as the regular annual limit.

The most that can be contributed in additional elective 

deferrals to your SIMPLE plan is the lesser of the following 

two amounts.

$2,500 for 2013, or

Your compensation for the year reduced by your other 

elective deferrals for the year.

The additional deferrals are not subject to any other 

contribution limit and are not taken into account in applying other contribution limits. The additional deferrals are 

not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them.

Matching employer contributions limit. Generally, 

your employer must make matching contributions to your 

SIMPLE IRA in an amount equal to your salary reduction 

contributions. These matching contributions cannot be 

more than 3% of your compensation for the calendar year. 

See Matching contributions less than 3% below.

Example 1. In 2013, Joshua was a participant in his 

employer's SIMPLE plan. His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). Instead of taking it all in cash, Joshua elected to have 

12.5% of his weekly pay ($100) contributed to his SIMPLE 

IRA. For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on 

these contributions.

Under the plan, Joshua's employer was required to 

make matching contributions to Joshua's SIMPLE IRA. 

Because his employer's matching contributions must 

equal Joshua's salary reductions, but cannot be more 

than 3% of his compensation (before salary reductions) 

for the year, his employer's matching contribution was 

limited to $1,248 (3% of $41,600).

Example 2. Assume the same facts as in Example 1, 

except that Joshua's compensation for the year was 

CAUTION

!

Page 78 Chapter 3 Savings Incentive Match Plans for Employees (SIMPLE)
$408,163 and he chose to have 2.94% of his weekly pay 

contributed to his SIMPLE IRA.

In this example, Joshua's salary reduction contributions 

for the year (2.94% × $408,163) were equal to the 2013 

limit for salary reduction contributions ($12,000). Because 

3% of Joshua's compensation ($12,245) is more than the 

amount his employer was required to match ($12,000), his 

employer's matching contributions were limited to 

$12,000.

In this example, total contributions made on Joshua's 

behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 

2013.

Matching contributions less than 3%. Your employer can reduce the 3% limit on matching contributions 

for a calendar year, but only if:

1. The limit is not reduced below 1%,

2. The limit is not reduced for more than 2 years out of 

the 5-year period that ends with (and includes) the 

year for which the election is effective, and

3. Employees are notified of the reduced limit within a 

reasonable period of time before the 60-day election 

period during which they can enter into salary reduction agreements.

For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the 

year, any year before the first year in which your employer 

(or a former employer) maintains a SIMPLE IRA plan will 

be treated as a year for which the limit was 3%. If your employer chooses to make nonelective contributions for a 

year, that year also will be treated as a year for which the 

limit was 3%.

Nonelective employer contributions limit. If your employer chooses to make nonelective contributions, instead 

of matching contributions, to each eligible employee's 

SIMPLE IRA, contributions must be 2% of your compensation for the entire year. For 2013, only $255,000 of your 

compensation can be taken into account to figure the contribution limit.

Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of 

the following requirements are met.

Eligible employees are notified that a 2% nonelective 

contribution will be made instead of a matching contribution.

This notice is provided within a reasonable period during which employees can enter into salary reduction 

agreements.

Example 3. Assume the same facts as in Example 2, 

except that Joshua's employer chose to make nonelective 

contributions instead of matching contributions. Because 

his employer's nonelective contributions are limited to 2% 

of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to 

$5,100. In this example, total contributions made on 

Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution 

of $5,100).

Traditional IRA mistakenly moved to SIMPLE IRA.

If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize 

the amount as a contribution to another traditional IRA. 

For more information, see Recharacterizations in chapter 1.

Recharacterizing employer contributions. You cannot 

recharacterize employer contributions (including elective 

deferrals) under a SEP or SIMPLE plan as contributions to 

another IRA. SEPs are discussed in chapter 2 of Publication 560. SIMPLE plans are discussed in this chapter.

Converting from a SIMPLE IRA. Generally, you can 

convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA.

However, you cannot convert any amount distributed 

from the SIMPLE IRA during the 2-year period beginning 

on the date you first participated in any SIMPLE IRA plan 

maintained by your employer.

When Can You Withdraw

or Use Assets?

Generally, the same distribution (withdrawal) rules that 

apply to traditional IRAs apply to SIMPLE IRAs. These 

rules are discussed in chapter 1.

Your employer cannot restrict you from taking distributions from a SIMPLE IRA.

Are Distributions Taxable?

Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. If the distribution is an early distribution (discussed in chapter 1), it may be subject to the 

additional tax on early distributions. See Additional Tax on 

Early Distributions, later.

Rollovers and Transfers Exception

Generally, rollovers and trustee-to-trustee transfers are 

not taxable distributions.

Two­year rule. To qualify as a tax-free rollover (or a 

tax-free trustee-to-trustee transfer), a rollover distribution 

(or a transfer) made from a SIMPLE IRA during the 2-year 

period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed 

(or transferred) to another SIMPLE IRA. The 2-year period 

begins on the first day on which contributions made by 

your employer are deposited in your SIMPLE IRA.

After the 2-year period, amounts in a SIMPLE IRA can 

be rolled over or transferred tax free to an IRA other than a 

SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity 

Chapter 3 Savings Incentive Match Plans for Employees (SIMPLE) Page 79
plan (section 403(b) plan), or deferred compensation plan 

of a state or local government (section 457 plan).

Additional Tax on Early Distributions

The additional tax on early distributions (discussed in 

chapter 1) applies to SIMPLE IRAs. If a distribution is an 

early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%.

If a rollover distribution (or transfer) from a SIMPLE IRA 

does not satisfy the 2-year rule, and is otherwise an early 

distribution, the additional tax imposed because of the 

early distribution is increased from 10% to 25% of the 

amount distributed.

4.

Retirement Savings 

Contributions Credit

(Saver's Credit)

What's New

Modified AGI limit for retirement savings contributions credit increased. For 2013, you may be able to 

claim the retirement savings contributions credit if your 

modified AGI is not more than:

$59,000 if your filing status is married filing jointly,

$44,250 if your filing status is head of household, or

$29,500 if your filing status is single, married filing 

separately, or qualifying widow(er).

Introduction

You may be able to take a tax credit if you make eligible 

contributions (defined later) to a qualified retirement plan, 

an eligible deferred compensation plan, or an individual 

retirement arrangement (IRA). You may be able to take a 

credit of up to $1,000 (up to $2,000 if filing jointly). This 

credit could reduce the federal income tax you pay dollar 

for dollar.

Can you claim the credit? If you make eligible contributions to a qualified retirement plan, an eligible deferred 

compensation plan, or an IRA, you can claim the credit if 

all of the following apply.

1. You were born before January 2, 1996.

2. You are not a full-time student (explained next).

3. No one else, such as your parent(s), claims an exemption for you on their tax return.

4. Your adjusted gross income (defined below) is not 

more than:

a. $59,000 if your filing status is married filing jointly,

b. $44,250 if your filing status is head of household, 

or

c. $29,500 if your filing status is single, married filing 

separately, or qualifying widow(er).

Full-time student. You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either:

A full-time student at a school that has a regular 

teaching staff, course of study, and regularly enrolled 

body of students in attendance, or

A student taking a full-time, on-farm training course 

given by either a school that has a regular teaching 

staff, course of study, and regularly enrolled body of 

students in attendance, or a state, county, or local 

government.

You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full 

time.

Adjusted gross income. This is generally the amount 

on line 38 of your 2013 Form 1040; line 22 of your 2013 

Form 1040A; or line 37 of your 2013 Form 1040NR. However, you must add to that amount any exclusion or deduction claimed for the year for:

Foreign earned income,

Foreign housing costs,

Income for bona fide residents of American Samoa, 

and

Income from Puerto Rico.

Eligible contributions. These include:

1. Contributions to a traditional or Roth IRA,

2. Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to:

a. A 401(k) plan (including a SIMPLE 401(k)),

b. A section 403(b) annuity,

c. An eligible deferred compensation plan of a state 

or local government (a governmental 457 plan),

d. A SIMPLE IRA plan, or

e. A salary reduction SEP, and

Page 80 Chapter 4 Retirement Savings Contributions Credit (Saver's Credit)
3. Contributions to a section 501(c)(18) plan.

They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) 

annuity. For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment.

Reducing eligible contributions. Reduce your eligible 

contributions (but not below zero) by the total distributions 

you received during the testing period (defined later) from 

any IRA, plan, or annuity included above under Eligible 

contributions. Also reduce your eligible contributions by 

any distribution from a Roth IRA that is not rolled over, 

even if the distribution is not taxable.

Do not reduce your eligible contributions by any of the 

following.

1. The portion of any distribution which is not includible 

in income because it is a trustee-to-trustee transfer or 

a rollover distribution.

2. Distributions that are taxable as the result of an 

in-plan rollover to your designated Roth account.

3. Any distribution that is a return of a contribution to an 

IRA (including a Roth IRA) made during the year for 

which you claim the credit if:

a. The distribution is made before the due date (including extensions) of your tax return for that year,

b. You do not take a deduction for the contribution, 

and

c. The distribution includes any income attributable 

to the contribution.

4. Loans from a qualified employer plan treated as a distribution.

5. Distributions of excess contributions or deferrals (and 

income attributable to excess contributions and deferrals).

6. Distributions of dividends paid on stock held by an 

employee stock ownership plan under section 404(k).

7. Distributions from an eligible retirement plan that are 

converted or rolled over to a Roth IRA.

8. Distributions from a military retirement plan.

9. Distributions from an inherited IRA by a nonspousal 

beneficiary.

Distributions received by spouse. Any distributions 

your spouse receives are treated as received by you if you 

file a joint return with your spouse both for the year of the 

distribution and for the year for which you claim the credit.

Testing period. The testing period consists of the 

year for which you claim the credit, the period after the 

end of that year and before the due date (including extensions) for filing your return for that year, and the 2 tax 

years before that year.

Example. You and your spouse filed joint returns in 

2011 and 2012, and plan to do so in 2013 and 2014. You 

received a taxable distribution from a qualified plan in 

2011 and a taxable distribution from an eligible deferred 

compensation plan in 2012. Your spouse received taxable 

distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. You made 

eligible contributions to an IRA in 2013 and you otherwise 

qualify for this credit. You must reduce the amount of your 

qualifying contributions in 2013 by the total of the distributions you received in 2011, 2012, 2013, and 2014.

Maximum eligible contributions. After your contributions are reduced, the maximum annual contribution on 

which you can base the credit is $2,000 per person.

Effect on other credits. The amount of this credit will 

not change the amount of your refundable tax credits. A 

refundable tax credit, such as the earned income credit or 

the refundable amount of your child tax credit, is an 

amount that you would receive as a refund even if you did 

not otherwise owe any taxes.

Maximum credit. This is a nonrefundable credit. The 

amount of the credit in any year cannot be more than the 

amount of tax that you would otherwise pay (not counting 

any refundable credits) in any year. If your tax liability is 

reduced to zero because of other nonrefundable credits, 

such as the credit for child and dependent care expenses, 

then you will not be entitled to this credit.

How to figure and report the credit. The amount of the 

credit you can get is based on the contributions you make 

and your credit rate. Your credit rate can be as low as 

10% or as high as 50%. Your credit rate depends on your 

income and your filing status. See Form 8880 to determine your credit rate.

The maximum contribution taken into account is $2,000 

per person. On a joint return, up to $2,000 is taken into account for each spouse.

Figure the credit on Form 8880. Report the credit on 

line 50 of your Form 1040; line 32 of your Form 1040A; or 

line 47 of your Form 1040NR and attach Form 8880 to 

your return.

5.

How To Get Tax Help

Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help 

you need the way you want it: online, use a smart phone, 

call or walk in to an IRS office or volunteer site near you.

Free help with your tax return. You can get free help 

preparing your return nationwide from IRS-certified volunteers. The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with 

disabilities, and limited English proficient taxpayers. The 

Chapter 5 How To Get Tax Help Page 81
Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Most VITA 

and TCE sites offer free electronic filing and all volunteers 

will let you know about credits and deductions you may be 

entitled to claim. In addition, some VITA and TCE sites 

provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. To find the 

nearest VITA or TCE site, you can use the VITA Locator 

Tool on IRS.gov, download the IRS2Go app, or call 

1-800-906-9887.

As part of the TCE program, AARP offers the Tax-Aide 

counseling program. To find the nearest AARP Tax-Aide 

site, visit AARP's website at www.aarp.org/money/taxaide 

or call 1-888-227-7669. For more information on these 

programs, go to IRS.gov and enter “VITA” in the search 

box.

Internet. IRS.gov and IRS2Go are ready when you 

are —24 hours a day, 7 days a week.

Download the free IRS2Go app from the iTunes app 

store or from Google Play. Use it to check your refund 

status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news 

as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the 

IRS Twitter news feed, @IRSnews, to get the latest 

federal tax news, including information about tax law 

changes and important IRS programs.

Check the status of your 2013 refund with the Where's 

My Refund? application on IRS.gov or download the 

IRS2Go app and select the Refund Status option. The 

IRS issues more than 9 out of 10 refunds in less than 

21 days. Using these applications, you can start 

checking on the status of your return within 24 hours 

after we receive your e-filed return or 4 weeks after 

you mail a paper return. You will also be given a personalized refund date as soon as the IRS processes 

your tax return and approves your refund. The IRS updates Where's My Refund? every 24 hours, usually 

overnight, so you only need to check once a day.

Use the Interactive Tax Assistant (ITA) to research 

your tax questions. No need to wait on the phone or 

stand in line. The ITA is available 24 hours a day, 7 

days a week, and provides you with a variety of tax information related to general filing topics, deductions, 

credits, and income. When you reach the response 

screen, you can print the entire interview and the final 

response for your records. New subject areas are 

added on a regular basis.

Answers not provided through ITA may be found in 

Tax Trails, one of the Tax Topics on IRS.gov which 

contain general individual and business tax information or by searching the IRS Tax Map, which includes 

an international subject index. You can use the IRS 

Tax Map, to search publications and instructions by 

topic or keyword. The IRS Tax Map integrates forms 

and publications into one research tool and provides 

single-point access to tax law information by subject. 

When the user searches the IRS Tax Map, they will be 

provided with links to related content in existing IRS 

publications, forms and instructions, questions and 

answers, and Tax Topics.

Coming this filing season, you can immediately view 

and print for free all 5 types of individual federal tax 

transcripts (tax returns, tax account, record of account, wage and income statement, and certification 

of non-filing) using Get Transcript. You can also ask 

the IRS to mail a return or an account transcript to 

you. Only the mail option is available by choosing the 

Tax Records option on the IRS2Go app by selecting 

Mail Transcript on IRS.gov or by calling 

1-800-908-9946. Tax return and tax account transcripts are generally available for the current year and 

the past three years.

Determine if you are eligible for the EITC and estimate 

the amount of the credit with the Earned Income Tax 

Credit (EITC) Assistant.

Visit Understanding Your IRS Notice or Letter to get 

answers to questions about a notice or letter you received from the IRS.

If you received the First Time Homebuyer Credit, you 

can use the First Time Homebuyer Credit Account 

Look­up tool for information on your repayments and 

account balance.

Check the status of your amended return using 

Where's My Amended Return? Go to IRS.gov and enter Where's My Amended Return? in the search box. 

You can generally expect your amended return to be 

processed up to 12 weeks from the date we receive it. 

It can take up to 3 weeks from the date you mailed it to 

show up in our system.

Make a payment using one of several safe and convenient electronic payment options available on 

IRS.gov. Select the Payment tab on the front page of 

IRS.gov for more information.

Determine if you are eligible and apply for an online 

payment agreement, if you owe more tax than you can 

pay today.

Figure your income tax withholding with the IRS 

Withholding Calculator on IRS.gov. Use it if you've 

had too much or too little withheld, your personal situation has changed, you're starting a new job or you 

just want to see if you're having the right amount withheld.

Determine if you might be subject to the Alternative 

Minimum Tax by using the Alternative Minimum Tax 

Assistant on IRS.gov.

Request an Electronic Filing PIN by going to 

IRS.gov and entering Electronic Filing PIN in the 

search box.

Download forms, instructions and publications, including accessible versions for people with disabilities.

Locate the nearest Taxpayer Assistance Center 

(TAC) using the Office Locator tool on IRS.gov, or 

choose the Contact Us option on the IRS2Go app and 

search Local Offices. An employee can answer 

Page 82 Chapter 5 How To Get Tax Help
questions about your tax account or help you set up a 

payment plan. Before you visit, check the Office Locator on IRS.gov, or Local Offices under Contact Us on 

IRS2Go to confirm the address, phone number, days 

and hours of operation, and the services provided. If 

you have a special need, such as a disability, you can 

request an appointment. Call the local number listed 

in the Office Locator, or look in the phone book under 

United States Government, Internal Revenue Service.

Apply for an Employer Identification Number (EIN). 

Go to IRS.gov and enter Apply for an EIN in the 

search box.

Read the Internal Revenue Code, regulations, or other 

official guidance.

Read Internal Revenue Bulletins.

Sign up to receive local and national tax news and 

more by email. Just click on “subscriptions” above the 

search box on IRS.gov and choose from a variety of 

options.

Phone. You can call the IRS, or you can carry it in your 

pocket with the IRS2Go app on your smart phone or tablet. Download the free IRS2Go app from the iTunes app 

store or from Google Play.

Call to locate the nearest volunteer help site, 

1-800-906-9887 or you can use the VITA Locator Tool 

on IRS.gov, or download the IRS2Go app. 

Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get 

free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. The 

Tax Counseling for the Elderly (TCE) program helps 

taxpayers age 60 and older with their tax returns. Most 

VITA and TCE sites offer free electronic filing. Some 

VITA and TCE sites provide IRS-certified volunteers 

who can help prepare your tax return. Through the 

TCE program, AARP offers the Tax-Aide counseling 

program; call 1-888-227-7669 to find the nearest 

Tax-Aide location.

Call the automated Where's My Refund? information 

hotline to check the status of your 2013 refund 24 

hours a day, 7 days a week at 1-800-829-1954. If you 

e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 

The IRS issues more than 9 out of 10 refunds in less 

than 21 days. Where's My Refund? will give you a personalized refund date as soon as the IRS processes 

your tax return and approves your refund. Before you 

call this automated hotline, have your 2013 tax return 

handy so you can enter your social security number, 

your filing status, and the exact whole dollar amount of 

your refund. The IRS updates Where's My Refund? 

every 24 hours, usually overnight, so you only need to 

check once a day. Note, the above information is for 

our automated hotline. Our live phone and walk-in assistors can research the status of your refund only if 

it's been 21 days or more since you filed electronically 

or more than 6 weeks since you mailed your paper return.

Call the Amended Return Hotline, 1-866-464-2050, to 

check the status of your amended return. You can 

generally expect your amended return to be processed up to 12 weeks from the date we receive it. It 

can take up to 3 weeks from the date you mailed it to 

show up in our system.

Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and 

prior-year forms and instructions (limited to 5 years). 

You should receive your order within 10 business 

days.

Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. If, between January and April 15, you still 

have questions about the Form 1040, 1040A, or 

1040EZ (like filing requirements, dependents, credits, 

Schedule D, pensions and IRAs or self-employment 

taxes), call 1-800-829-1040.

Call using TTY/TDD equipment, 1-800-829-4059 to 

ask tax questions or order forms and publications. The 

TTY/TDD telephone number is for people who are 

deaf, hard of hearing, or have a speech disability. 

These individuals can also contact the IRS through relay services such as the Federal Relay Service.

Walk­in. You can find a selection of forms, publications 

and services — in-person.

Products. You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, 

and city and county government offices have a collection of products available to photocopy from reproducible proofs.

Services. You can walk in to your local TAC for 

face-to-face tax help. An employee can answer questions about your tax account or help you set up a payment plan. Before visiting, use the Office Locator tool 

on IRS.gov, or choose the Contact Us option on the 

IRS2Go app and search Local Offices for days and 

hours of operation, and services provided.

Mail. You can send your order for forms, instructions, 

and publications to the address below. You should receive a response within 10 business days after your request is received.

Internal Revenue Service

1201 N. Mitsubishi Motorway

Bloomington, IL 61705-6613

The Taxpayer Advocate Service Is Here to Help You. The 

Taxpayer Advocate Service (TAS) is your voice at the 

IRS. Our job is to ensure that every taxpayer is treated 

fairly and that you know and understand your rights.

Chapter 5 How To Get Tax Help Page 83
What can TAS do for you? We can offer you free help with 

IRS problems that you can't resolve on your own. We 

know this process can be confusing, but the worst thing 

you can do is nothing at all! TAS can help if you can't resolve your tax problem and:

Your problem is causing financial difficulties for you, 

your family, or your business.

You face (or your business is facing) an immediate 

threat of adverse action.

You've tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn't responded by the 

date promised.

If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything 

possible to resolve your problem. Here's why we can help:

TAS is an independent organization within the IRS.

Our advocates know how to work with the IRS.

Our services are free and tailored to meet your needs.

We have offices in every state, the District of Columbia, and Puerto Rico.

How can you reach us? If you think TAS can help you, call 

your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 

1-877-777-4778.

How else does TAS help taxpayers?

TAS also works to resolve large-scale, systemic problems 

that affect many taxpayers. If you know of one of these 

broad issues, please report it to us through our Systemic 

Advocacy Management System.

Low Income Taxpayer Clinics

Low Income Taxpayer Clinics (LITCs) serve individuals 

whose income is below a certain level and need to resolve 

tax problems such as audits, appeals and tax collection 

disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for 

individuals who speak English as a second language. Visit 

Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List.

Page 84 Chapter 5 How To Get Tax Help
Appendices

To help you complete your tax return, 

use the following appendices that include worksheets and tables.

1. Appendix A — Summary Record 

of Traditional IRA(s) for 2013 and 

Worksheet for Determining Required Minimum Distributions.

2. Appendix B — Worksheets you 

use if you receive social security 

benefits and are subject to the 

IRA deduction phaseout rules. A 

filled-in example is included.

a. Worksheet 1, Computation of 

Modified AGI.

b. Worksheet 2, Computation of 

Traditional IRA Deduction for 

2013.

c. Worksheet 3, Computation of 

Taxable Social Security Benefits.

d. Comprehensive Example and 

completed worksheets.

3. Appendix C — Life Expectancy 

Tables. These tables are included 

to assist you in computing your required minimum distribution 

amount if you have not taken all 

your assets from all your traditional IRAs before age 701

2.

a. Table I (Single Life Expectancy).

b. Table II (Joint Life and Last 

Survivor Expectancy).

c. Table III (Uniform Lifetime).

Publication 590 (2013) Page 85
Summary Record of Traditional IRA(s) for 

2013

Appendix A.

Keep for Your Records

Name ______________________________________

I was covered not covered by my employer's retirement plan during the year.

I became 591

2 on ______________________________________(month) (day) (year)

I became 701

2 on ______________________________________(month) (day) (year)

Contributions

Name of traditional IRA Date

Amount contributed for 

2013 

Check if 

rollover 

contribution 

Fair Market Value of IRA as 

of December 31, 2013, 

from Form 5498

1.

2.

3.

4.

5.

6.

7.

8.

Total

Total contributions deducted on tax return ............................................. $

Total contributions treated as nondeductible on Form 8606 ............................... $

Distributions

Name of 

traditional IRA Date

Amount of 

Distribution

Reason (for 

example, 

retirement, 

rollover, 

conversion, 

withdrawal of 

excess 

contributions)

Income 

earned 

on IRA

Taxable 

amount 

reported on 

income tax 

return

Nontaxable amount from 

Form 8606, line 13

1.

2.

3.

4.

5.

6.

7.

8.

Total

Basis of all traditional IRAs for 2013 and earlier years (from Form 8606, line 14) ............. $

Note. You should keep copies of your income tax return, and Forms W­2, 8606, and 5498.

Page 86 Publication 590 (2013)
Worksheet for Determining 

Required Minimum Distributions

Appendix A. (Continued)

Keep for Your Records

1. Age 701

2 7112 7212 7312 7412

2. Year age was reached

3. Value of IRA at the close of business on 

December 31 of the year immediately prior to the

year on line 21

4. Distribution period from Table III or life expectancy 

from Life Expectancy Table I or Table II2

5. Required distribution (divide line 3 by line 4)3

1. Age 751

2 7612 7712 7812 7912

2. Year age was reached

3. Value of IRA at the close of business on 

December 31 of the year immediately prior to the

year on line 21

4. Distribution period from Table III or life expectancy

from Life Expectancy Table I or Table II2

5. Required distribution (divide line 3 by line 4)3

1. Age 801

2 8112 8212 8312 8412

2. Year age was reached

3. Value of IRA at the close of business on 

December 31 of the year immediately prior to the

year on line 21

4. Distribution period from Table III or life expectancy

from Life Expectancy Table I or Table II2

5. Required distribution (divide line 3 by line 4)3

1. Age 851

2 8612 8712 8812 8912

2. Year age was reached

3. Value of IRA at the close of business on 

December 31 of the year immediately prior to the

year on line 21

4. Distribution period from Table III or life expectancy

from Life Expectancy Table I or Table II2

5. Required distribution (divide line 3 by line 4)3

1

If you have more than one IRA, you must figure the required distribution separately for each IRA.

2Use the appropriate life expectancy or distribution period for each year and for each IRA.

3

If you have more than one IRA, you must withdraw an amount equal to the total of the required distributions figured for each 

IRA. You can, however, withdraw the total from one IRA or from more than one IRA.

Publication 590 (2013) Page 87
Worksheets for Social Security Recipients 

Who Contribute to a Traditional IRA

Appendix B.

Keep for Your Records

If you receive social security benefits, have taxable compensation, contribute to your traditional IRA, and you or your spouse 

is covered by an employer retirement plan, complete the following worksheets. (See Are You Covered by an Employer Plan?

in chapter 1.)

Use Worksheet 1 to figure your modified adjusted gross income. This amount is needed in the computation of your IRA 

deduction, if any, which is figured using Worksheet 2.

The IRA deduction figured using Worksheet 2 is entered on your tax return.

Worksheet 1

Computation of Modified AGI

(For use only by taxpayers who receive social security benefits)

Filing Status — Check only one box:

A. Married filing jointly

B. Single, Head of Household, Qualifying Widow(er), or Married filing separately and 

lived apart from your spouse during the entire year

C. Married filing separately and lived with your spouse at any time during the year

1. Adjusted gross income (AGI) from Form 1040 or Form 1040A

(For purposes of this worksheet, figure your AGI without taking into account any social security 

benefits from Form SSA-1099 or RRB-1099, any deduction for contributions to a traditional 

IRA, any student loan interest deduction, any tuition and fees deduction, any domestic 

production activities deduction, or any exclusion of interest from savings bonds to be reported 

on Form 8815.) .................................................................... 1.

2. Enter the amount in box 5 of all Forms SSA-1099 and Forms RRB-1099 .................. 2.

3. Enter one-half of line 2 ............................................................. 3.

4. Enter the amount of any foreign earned income exclusion, foreign housing exclusion, U.S. 

possessions income exclusion, exclusion of income from Puerto Rico you claimed as a bona 

fide resident of Puerto Rico, or exclusion of employer-provided adoption benefits .......... 4.

5. Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 1040A ..... 5.

6. Add lines 1, 3, 4, and 5 ............................................................. 6.

7. Enter the amount listed below for your filing status.

$32,000 if you checked box A above.

$25,000 if you checked box B above.

$0 if you checked box C above. ........................ ........................ 7.

8. Subtract line 7 from line 6. If zero or less, enter -0- on this line ........................... 8.

9. If line 8 is zero, skip to line 17, enter -0-, and continue with line 18.

 If line 8 is more than zero, enter the amount listed below for your filing status.

$12,000 if you checked box A above.

$9,000 if you checked box B above.

$0 if you checked box C above ......................... ........................ 9.

10. Subtract line 9 from line 8. If zero or less, enter -0- .....................................

10.

11. Enter the smaller of line 8 or line 9 ...................................................

11.

12. Enter one-half of line 11 ............................................................

12.

13. Enter the smaller of line 3 or line 12 ..................................................

13.

14. Multiply line 10 by .85. If line 10 is zero, enter -0- .......................................

14.

15. Add lines 13 and 14 ................................................................

15.

16. Multiply line 2 by .85 ...............................................................

16.

17. Taxable benefits to be included in modified AGI for traditional IRA deduction purposes.

Enter the smaller of line 15 or line 16 ................................................. 17.

18. Enter the amount of any employer-provided adoption benefits exclusion and any foreign

earned income exclusion and foreign housing exclusion or deduction that you claimed ..... 18.

19. Modified AGI for determining your reduced traditional IRA deduction — add lines 1, 17, and 

18. Enter here and on line 2 of Worksheet 2, next ...................................... 19.

Page 88 Publication 590 (2013)
Appendix B. (Continued) Keep for Your Records

Worksheet 2

Computation of Traditional IRA Deduction For 2013

(For use only by taxpayers who receive social security benefits) 

IF your filing status is ... AND your modified AGI is over ...

THEN enter on line 1 

below ...

married filing jointly or 

qualifying widow(er) $95,000* $115,000

married filing jointly (you 

are not covered by an 

employer plan but your 

spouse is) $178,000* $188,000

single, or head of 

household $59,000* $69,000

married filing 

separately** $0* $10,000

*If your modified AGI is not over this amount, you can take an IRA deduction for your contributions of up to the lesser 

of $5,500 ($6,500 if you are age 50 or older) or your taxable compensation. Skip this worksheet, proceed to 

Worksheet 3, and enter your IRA deduction on line 2 of Worksheet 3.

**If you did not live with your spouse at any time during the year, consider your filing status as single.

Note. If you were married and you or your spouse worked and you both contributed to IRAs, figure the deduction for 

each of you separately.

1. Enter the applicable amount from above .......................................... 1.

2. Enter your modified AGI from Worksheet 1, line 19 ................................ 2.

Note. If line 2 is equal to or more than the amount on line 1, stop here; your traditional 

IRA contributions are not deductible. Proceed to Worksheet 3.

3. Subtract line 2 from line 1 ....................................................... 3.

4. Multiply line 3 by the percentage below that applies to you. If the result is not a multiple of 

$10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to 

$620.) However, if the result is less than $200, enter $200.

Married filing jointly or qualifying widow(er) and you are 

covered by an employer plan, multiply line 3 by 27.5% 

 (.275) (by 32.5% (.325) if you are age 50 or older).

All others, multiply line 3 by 55% (.55) (by 65% (.65) if you 

are age 50 or older).

.................. 4.

5. Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 

(deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and 

qualified plans). If you are the lower-income spouse, include your spouse's 

compensation reduced by his or her traditional IRA and Roth IRA contributions for this 

year .......................................................................... 5.

6. Enter contributions you made, or plan to make, to your traditional IRA for 2013, but do not 

enter more than $5,500 ($6,500 if you are age 50 or older) .......................... 6.

7. Deduction. Compare lines 4, 5, and 6. Enter the smallest amount here (or a smaller 

amount if you choose). Enter this amount on the Form 1040 or 1040A line for your IRA. (If 

the amount on line 6 is more than the amount on line 7, complete line 8.) .............. 7.

8. Nondeductible contributions. Subtract line 7 from line 5 or 6, whichever is smaller. 

Enter the result here and on line 1 of your Form 8606, Nondeductible IRAs. ............ 8.

Publication 590 (2013) Page 89
Appendix B. (Continued) Keep for Your Records

Worksheet 3

Computation of Taxable Social Security Benefits

(For use by taxpayers who receive social security benefits and take a traditional IRA 

deduction)

Filing Status — Check only one box:

A. Married filing jointly

B. Single, Head of Household, Qualifying Widow(er), or Married filing separately

 and lived apart from your spouse during the entire year

C. Married filing separately and lived with your spouse at any time during the

 year

1. Adjusted gross income (AGI) from Form 1040 or Form 1040A

(For purposes of this worksheet, figure your AGI without taking into account any IRA 

deduction, any student loan interest deduction, any tuition and fees deduction, any 

domestic production activities deduction, any social security benefits from Form 

SSA-1099 or RRB-1099, or any exclusion of interest from savings bonds to be reported 

on Form 8815.) ................................................................ 1. 

2. Deduction(s) from line 7 of Worksheet(s) 2 ........................................ 2. 

3. Subtract line 2 from line 1 ....................................................... 3. 

4. Enter amount in box 5 of all Forms SSA-1099 and Forms RRB-1099 .................. 4. 

5. Enter one-half of line 4 .......................................................... 5. 

6. Enter the amount of any foreign earned income exclusion, foreign housing exclusion, 

exclusion of income from U.S. possessions, exclusion of income from Puerto Rico you 

claimed as a bona fide resident of Puerto Rico, or exclusion of employer-provided 

adoption benefits .............................................................. 6. 

7. Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 

1040A ........................................................................ 7. 

8. Add lines 3, 5, 6, and 7 ......................................................... 8. 

9. Enter the amount listed below for your filing status.

$32,000 if you checked box A above.

$25,000 if you checked box B above.

$0 if you checked box C above. ...................... ...................... 9. 

10. Subtract line 9 from line 8. If zero or less, enter -0- on this line. ....................... 10. 

11. If line 10 is zero, stop here. None of your social security benefits are taxable.

If line 10 is more than zero, enter the amount listed below for your filing status.

$12,000 if you checked box A above.

$9,000 if you checked box B above.

$0 if you checked box C above. ...................... ...................... 11. 

12. Subtract line 11 from line 10. If zero or less, enter -0- ............................... 12. 

13. Enter the smaller of line 10 or line 11 ............................................. 13. 

14. Enter one-half of line 13 . ........................................................ 14. 

15. Enter the smaller of line 5 or line 14 .............................................. 15. 

16. Multiply line 12 by .85. If line 12 is zero, enter -0- ................................... 16. 

17. Add lines 15 and 16 ............................................................ 17. 

18. Multiply line 4 by .85 ............................................................ 18. 

19. Taxable social security benefits. Enter the smaller of line 17 or line 18 ............. 19. 

Page 90 Publication 590 (2013)
Appendix B. (Continued) Keep for Your Records

Comprehensive Example

Determining Your Traditional IRA Deduction and

the Taxable Portion of Your Social Security Benefits

John Black is married and files a joint return. He is 65 years old and had 2013 wages of $89,500. His wife did not work in 

2013. He also received social security benefits of $12,000 and made a $6,000 contribution to his traditional IRA for the year. 

He had no foreign income, no tax-exempt interest, and no adjustments to income on lines 23 through 36 on his Form 1040. 

He participated in a section 401(k) retirement plan at work.

John completes worksheets 1 and 2. Worksheet 2 shows that his 2013 IRA deduction is $4,980. He must either withdraw 

the contributions that are more than the deduction (the $1,020 shown on line 8 of Worksheet 2), or treat the excess amounts 

as nondeductible contributions (in which case he must complete Form 8606 and attach it to his Form 1040).

The completed worksheets that follow show how John figured his modified AGI to determine the IRA deduction and the 

taxable social security benefits to report on his Form 1040.

Worksheet 1

Computation of Modified AGI

(For use only by taxpayers who receive social security benefits)

Filing Status — Check only one box:

A. Married filing jointly

B. Single, Head of Household, Qualifying Widow(er), or Married filing separately and 

lived apart from your spouse during the entire year

C. Married filing separately and lived with your spouse at any time during the year

1. Adjusted gross income (AGI) from Form 1040 or Form 1040A

(For purposes of this worksheet, figure your AGI without taking into account any social security 

benefits from Form SSA-1099 or RRB-1099, any deduction for contributions to a traditional 

IRA, any student loan interest deduction, any tuition and fees deduction, any domestic 

production activities deduction, or any exclusion of interest from savings bonds to be reported 

on Form 8815.) .................................................................... 1. 89,500

2. Enter the amount in box 5 of all Forms SSA-1099 and Forms RRB-1099 .................. 2. 12,000

3. Enter one-half of line 2 ............................................................. 3. 6,000

4. Enter the amount of any foreign earned income exclusion, foreign housing exclusion, U.S. 

possessions income exclusion, exclusion of income from Puerto Rico you claimed as a bona 

fide resident of Puerto Rico, or exclusion of employer-provided adoption benefits .......... 4. 0

5. Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 1040A ..... 5. 0

6. Add lines 1, 3, 4, and 5 ............................................................. 6. 95,500

7. Enter the amount listed below for your filing status.

$32,000 if you checked box A above.

$25,000 if you checked box B above.

$0 if you checked box C above. ........................ ........................ 7. 32,000

8. Subtract line 7 from line 6. If zero or less, enter -0- on this line ........................... 8. 63,500

9. If line 8 is zero, skip to line 17, enter -0-, and continue with line 18.

 If line 8 is more than zero, enter the amount listed below for your filing status.

$12,000 if you checked box A above.

$9,000 if you checked box B above.

$0 if you checked box C above ......................... ........................ 9. 12,000

10. Subtract line 9 from line 8. If zero or less, enter -0- ..................................... 10. 51,500

11. Enter the smaller of line 8 or line 9 ................................................... 11. 12,000

12. Enter one-half of line 11 ............................................................ 12. 6,000

13. Enter the smaller of line 3 or line 12 .................................................. 13. 6,000

14. Multiply line 10 by .85. If line 10 is zero, enter -0- ....................................... 14. 43,775

15. Add lines 13 and 14 ................................................................ 15. 49,775

16. Multiply line 2 by .85 ............................................................... 16. 10,200

17. Taxable benefits to be included in modified AGI for traditional IRA deduction purposes.

Enter the smaller of line 15 or line 16 ................................................. 17. 10,200

18. Enter the amount of any employer-provided adoption benefits exclusion and any foreign

earned income exclusion and foreign housing exclusion or deduction that you claimed ..... 18. 0

19. Modified AGI for determining your reduced traditional IRA deduction — add lines 1, 17, and 

18. Enter here and on line 2 of Worksheet 2, next ...................................... 19. 99,700

Publication 590 (2013) Page 91
Appendix B. (Continued) Keep for Your Records

Worksheet 2

Computation of Traditional IRA Deduction For 2013

(For use only by taxpayers who receive social security benefits) 

IF your filing status is ... AND your modified AGI is over ...

THEN enter on line 1 

below ...

married filing jointly or 

qualifying widow(er) $95,000* $115,000

married filing jointly (you 

are not covered by an 

employer plan but your 

spouse is) $178,000* $188,000

single, or head of 

household $59,000* $69,000

married filing 

separately** $0* $10,000

*If your modified AGI is not over this amount, you can take an IRA deduction for your contributions of up to the lesser 

of $5,500 ($6,500 if you are age 50 or older) or your taxable compensation. Skip this worksheet, proceed to 

Worksheet 3, and enter your IRA deduction on line 2 of Worksheet 3.

**If you did not live with your spouse at any time during the year, consider your filing status as single.

Note. If you were married and you or your spouse worked and you both contributed to IRAs, figure the deduction for 

each of you separately.

1. Enter the applicable amount from above .......................................... 1. 115,000

2. Enter your modified AGI from Worksheet 1, line 19 ................................ 2. 99,700

Note. If line 2 is equal to or more than the amount on line 1, stop here; your traditional 

IRA contributions are not deductible. Proceed to Worksheet 3.

3. Subtract line 2 from line 1 ....................................................... 3. 15,300

4. Multiply line 3 by the percentage below that applies to you. If the result is not a multiple of 

$10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to 

$620.) However, if the result is less than $200, enter $200.

Married filing jointly or qualifying widow(er) and you are 

covered by an employer plan, multiply line 3 by 27.5% 

 (.275) (by 32.5% (.325) if you are age 50 or older).

All others, multiply line 3 by 55% (.55) (by 65% (.65) if you 

are age 50 or older).

.................. 4. 4,980

5. Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 

(deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and 

qualified plans). If you are the lower-income spouse, include your spouse's 

compensation reduced by his or her traditional IRA and Roth IRA contributions for this 

year .......................................................................... 5. 89,500

6. Enter contributions you made, or plan to make, to your traditional IRA for 2013, but do not 

enter more than $5,500 ($6,500 if you are age 50 or older) .......................... 6. 6,000

7. Deduction. Compare lines 4, 5, and 6. Enter the smallest amount here (or a smaller 

amount if you choose). Enter this amount on the Form 1040 or 1040A line for your IRA. (If 

the amount on line 6 is more than the amount on line 7, complete line 8.) .............. 7. 4,980

8. Nondeductible contributions. Subtract line 7 from line 5 or 6, whichever is smaller. 

Enter the result here and on line 1 of your Form 8606, Nondeductible IRAs. ............ 8. 1,020

Page 92 Publication 590 (2013)
Appendix B. (Continued) Keep for Your Records

Worksheet 3

Computation of Taxable Social Security Benefits

(For use by taxpayers who receive social security benefits and take a traditional IRA 

deduction)

Filing Status — Check only one box:

A. Married filing jointly

B. Single, Head of Household, Qualifying Widow(er), or Married filing separately

 and lived apart from your spouse during the entire year

C. Married filing separately and lived with your spouse at any time during the

 year

1. Adjusted gross income (AGI) from Form 1040 or Form 1040A

(For purposes of this worksheet, figure your AGI without taking into account any IRA 

deduction, any student loan interest deduction, any tuition and fees deduction, any 

domestic production activities deduction, any social security benefits from Form SSA-1099 

or RRB-1099, or any exclusion of interest from savings bonds to be reported on Form 

8815.) ........................................................................ 1. 89,500

2. Deduction(s) from line 7 of Worksheet(s) 2 ......................................... 2. 4,980

3. Subtract line 2 from line 1 ....................................................... 3. 84,520

4. Enter amount in box 5 of all Forms SSA-1099 and Forms RRB-1099 .................. 4. 12,000

5. Enter one-half of line 4 .......................................................... 5. 6,000

6. Enter the amount of any foreign earned income exclusion, foreign housing exclusion, 

exclusion of income from U.S. possessions, exclusion of income from Puerto Rico you 

claimed as a bona fide resident of Puerto Rico, or exclusion of employer-provided 

adoption benefits .............................................................. 6. 0

7. Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 

1040A ........................................................................ 7. 0

8. Add lines 3, 5, 6, and 7 ......................................................... 8. 90,520

9. Enter the amount listed below for your filing status.

$32,000 if you checked box A above.

$25,000 if you checked box B above.

$0 if you checked box C above. ...................... ...................... 9. 32,000

10. Subtract line 9 from line 8. If zero or less, enter -0- on this line. ........................ 10. 58,520

11. If line 10 is zero, stop here. None of your social security benefits are taxable.

If line 10 is more than zero, enter the amount listed below for your filing status.

$12,000 if you checked box A above.

$9,000 if you checked box B above.

$0 if you checked box C above. ...................... ...................... 11. 12,000

12. Subtract line 11 from line 10. If zero or less, enter -0- ............................... 12. 46,520

13. Enter the smaller of line 10 or line 11 ............................................. 13. 12,000

14. Enter one-half of line 13 . ........................................................ 14. 6,000

15. Enter the smaller of line 5 or line 14 .............................................. 15. 6,000

16. Multiply line 12 by .85. If line 12 is zero, enter -0- ................................... 16. 39,542

17. Add lines 15 and 16 ............................................................ 17. 45,542

18. Multiply line 4 by .85 ............................................................ 18. 10,200

19. Taxable social security benefits. Enter the smaller of line 17 or line 18 .............. 19. 10,200

Publication 590 (2013) Page 93
Appendix C. Life Expectancy Tables

Table I

(Single Life Expectancy)

(For Use by Beneficiaries)

Age Life Expectancy Age Life Expectancy

0 82.4 28 55.3

1 81.6 29 54.3

2 80.6 30 53.3

3 79.7 31 52.4

4 78.7 32 51.4

5 77.7 33 50.4

6 76.7 34 49.4

7 75.8 35 48.5

8 74.8 36 47.5

9 73.8 37 46.5

10 72.8 38 45.6

11 71.8 39 44.6

12 70.8 40 43.6

13 69.9 41 42.7

14 68.9 42 41.7

15 67.9 43 40.7

16 66.9 44 39.8

17 66.0 45 38.8

18 65.0 46 37.9

19 64.0 47 37.0

20 63.0 48 36.0

21 62.1 49 35.1

22 61.1 50 34.2

23 60.1 51 33.3

24 59.1 52 32.3

25 58.2 53 31.4

26 57.2 54 30.5

27 56.2 55 29.6

Page 94 Publication 590 (2013)
Appendix C. (Continued)

Table I

(Single Life Expectancy)

(For Use by Beneficiaries)

Age Life Expectancy Age Life Expectancy

56 28.7 84 8.1

57 27.9 85 7.6

58 27.0 86 7.1

59 26.1 87 6.7

60 25.2 88 6.3

61 24.4 89 5.9

62 23.5 90 5.5

63 22.7 91 5.2

64 21.8 92 4.9

65 21.0 93 4.6

66 20.2 94 4.3

67 19.4 95 4.1

68 18.6 96 3.8

69 17.8 97 3.6

70 17.0 98 3.4

71 16.3 99 3.1

72 15.5 100 2.9

73 14.8 101 2.7

74 14.1 102 2.5

75 13.4 103 2.3

76 12.7 104 2.1

77 12.1 105 1.9

78 11.4 106 1.7

79 10.8 107 1.5

80 10.2 108 1.4

81 9.7 109 1.2

82 9.1 110 1.1

83 8.6 111 and over 1.0

Publication 590 (2013) Page 95
Appendix C. Life Expectancy Tables (Continued)

Table II 

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 20 21 22 23 24 25 26 27 28 29

20 70.1 69.6 69.1 68.7 68.3 67.9 67.5 67.2 66.9 66.6

21 69.6 69.1 68.6 68.2 67.7 67.3 66.9 66.6 66.2 65.9

22 69.1 68.6 68.1 67.6 67.2 66.7 66.3 65.9 65.6 65.2

23 68.7 68.2 67.6 67.1 66.6 66.2 65.7 65.3 64.9 64.6

24 68.3 67.7 67.2 66.6 66.1 65.6 65.2 64.7 64.3 63.9

25 67.9 67.3 66.7 66.2 65.6 65.1 64.6 64.2 63.7 63.3

26 67.5 66.9 66.3 65.7 65.2 64.6 64.1 63.6 63.2 62.8

27 67.2 66.6 65.9 65.3 64.7 64.2 63.6 63.1 62.7 62.2

28 66.9 66.2 65.6 64.9 64.3 63.7 63.2 62.7 62.1 61.7

29 66.6 65.9 65.2 64.6 63.9 63.3 62.8 62.2 61.7 61.2

30 66.3 65.6 64.9 64.2 63.6 62.9 62.3 61.8 61.2 60.7

31 66.1 65.3 64.6 63.9 63.2 62.6 62.0 61.4 60.8 60.2

32 65.8 65.1 64.3 63.6 62.9 62.2 61.6 61.0 60.4 59.8

33 65.6 64.8 64.1 63.3 62.6 61.9 61.3 60.6 60.0 59.4

34 65.4 64.6 63.8 63.1 62.3 61.6 60.9 60.3 59.6 59.0

35 65.2 64.4 63.6 62.8 62.1 61.4 60.6 59.9 59.3 58.6

36 65.0 64.2 63.4 62.6 61.9 61.1 60.4 59.6 59.0 58.3

37 64.9 64.0 63.2 62.4 61.6 60.9 60.1 59.4 58.7 58.0

38 64.7 63.9 63.0 62.2 61.4 60.6 59.9 59.1 58.4 57.7

39 64.6 63.7 62.9 62.1 61.2 60.4 59.6 58.9 58.1 57.4

40 64.4 63.6 62.7 61.9 61.1 60.2 59.4 58.7 57.9 57.1

41 64.3 63.5 62.6 61.7 60.9 60.1 59.3 58.5 57.7 56.9

42 64.2 63.3 62.5 61.6 60.8 59.9 59.1 58.3 57.5 56.7

43 64.1 63.2 62.4 61.5 60.6 59.8 58.9 58.1 57.3 56.5

44 64.0 63.1 62.2 61.4 60.5 59.6 58.8 57.9 57.1 56.3

45 64.0 63.0 62.2 61.3 60.4 59.5 58.6 57.8 56.9 56.1

46 63.9 63.0 62.1 61.2 60.3 59.4 58.5 57.7 56.8 56.0

47 63.8 62.9 62.0 61.1 60.2 59.3 58.4 57.5 56.7 55.8

48 63.7 62.8 61.9 61.0 60.1 59.2 58.3 57.4 56.5 55.7

49 63.7 62.8 61.8 60.9 60.0 59.1 58.2 57.3 56.4 55.6

50 63.6 62.7 61.8 60.8 59.9 59.0 58.1 57.2 56.3 55.4

51 63.6 62.6 61.7 60.8 59.9 58.9 58.0 57.1 56.2 55.3

52 63.5 62.6 61.7 60.7 59.8 58.9 58.0 57.1 56.1 55.2

53 63.5 62.5 61.6 60.7 59.7 58.8 57.9 57.0 56.1 55.2

54 63.5 62.5 61.6 60.6 59.7 58.8 57.8 56.9 56.0 55.1

55 63.4 62.5 61.5 60.6 59.6 58.7 57.8 56.8 55.9 55.0

56 63.4 62.4 61.5 60.5 59.6 58.7 57.7 56.8 55.9 54.9

57 63.4 62.4 61.5 60.5 59.6 58.6 57.7 56.7 55.8 54.9

58 63.3 62.4 61.4 60.5 59.5 58.6 57.6 56.7 55.8 54.8

59 63.3 62.3 61.4 60.4 59.5 58.5 57.6 56.7 55.7 54.8

Page 96 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 20 21 22 23 24 25 26 27 28 29

60 63.3 62.3 61.4 60.4 59.5 58.5 57.6 56.6 55.7 54.7

61 63.3 62.3 61.3 60.4 59.4 58.5 57.5 56.6 55.6 54.7

62 63.2 62.3 61.3 60.4 59.4 58.4 57.5 56.5 55.6 54.7

63 63.2 62.3 61.3 60.3 59.4 58.4 57.5 56.5 55.6 54.6

64 63.2 62.2 61.3 60.3 59.4 58.4 57.4 56.5 55.5 54.6

65 63.2 62.2 61.3 60.3 59.3 58.4 57.4 56.5 55.5 54.6

66 63.2 62.2 61.2 60.3 59.3 58.4 57.4 56.4 55.5 54.5

67 63.2 62.2 61.2 60.3 59.3 58.3 57.4 56.4 55.5 54.5

68 63.1 62.2 61.2 60.2 59.3 58.3 57.4 56.4 55.4 54.5

69 63.1 62.2 61.2 60.2 59.3 58.3 57.3 56.4 55.4 54.5

70 63.1 62.2 61.2 60.2 59.3 58.3 57.3 56.4 55.4 54.4

71 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.4 55.4 54.4

72 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.3 55.4 54.4

73 63.1 62.1 61.2 60.2 59.2 58.3 57.3 56.3 55.4 54.4

74 63.1 62.1 61.2 60.2 59.2 58.2 57.3 56.3 55.4 54.4

75 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4

76 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4

77 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4

78 63.1 62.1 61.1 60.2 59.2 58.2 57.3 56.3 55.3 54.4

79 63.1 62.1 61.1 60.2 59.2 58.2 57.2 56.3 55.3 54.3

80 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

81 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

82 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

83 63.1 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

84 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

85 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.3 55.3 54.3

86 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3

87 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3

88 63.0 62.1 61.1 60.1 59.2 58.2 57.2 56.2 55.3 54.3

89 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

90 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

91 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

92 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

93 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

94 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

95 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

96 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

97 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

98 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

99 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

Publication 590 (2013) Page 97
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 20 21 22 23 24 25 26 27 28 29

100 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

101 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

102 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

103 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

104 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

105 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

106 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

107 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

108 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

109 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

110 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

111 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

112 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

113 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

114 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

115+ 63.0 62.1 61.1 60.1 59.1 58.2 57.2 56.2 55.3 54.3

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 30 31 32 33 34 35 36 37 38 39

30 60.2 59.7 59.2 58.8 58.4 58.0 57.6 57.3 57.0 56.7

31 59.7 59.2 58.7 58.2 57.8 57.4 57.0 56.6 56.3 56.0

32 59.2 58.7 58.2 57.7 57.2 56.8 56.4 56.0 55.6 55.3

33 58.8 58.2 57.7 57.2 56.7 56.2 55.8 55.4 55.0 54.7

34 58.4 57.8 57.2 56.7 56.2 55.7 55.3 54.8 54.4 54.0

35 58.0 57.4 56.8 56.2 55.7 55.2 54.7 54.3 53.8 53.4

36 57.6 57.0 56.4 55.8 55.3 54.7 54.2 53.7 53.3 52.8

37 57.3 56.6 56.0 55.4 54.8 54.3 53.7 53.2 52.7 52.3

38 57.0 56.3 55.6 55.0 54.4 53.8 53.3 52.7 52.2 51.7

39 56.7 56.0 55.3 54.7 54.0 53.4 52.8 52.3 51.7 51.2

40 56.4 55.7 55.0 54.3 53.7 53.0 52.4 51.8 51.3 50.8

41 56.1 55.4 54.7 54.0 53.3 52.7 52.0 51.4 50.9 50.3

42 55.9 55.2 54.4 53.7 53.0 52.3 51.7 51.1 50.4 49.9

43 55.7 54.9 54.2 53.4 52.7 52.0 51.3 50.7 50.1 49.5

44 55.5 54.7 53.9 53.2 52.4 51.7 51.0 50.4 49.7 49.1

45 55.3 54.5 53.7 52.9 52.2 51.5 50.7 50.0 49.4 48.7

46 55.1 54.3 53.5 52.7 52.0 51.2 50.5 49.8 49.1 48.4

47 55.0 54.1 53.3 52.5 51.7 51.0 50.2 49.5 48.8 48.1

48 54.8 54.0 53.2 52.3 51.5 50.8 50.0 49.2 48.5 47.8

Page 98 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 30 31 32 33 34 35 36 37 38 39

49 54.7 53.8 53.0 52.2 51.4 50.6 49.8 49.0 48.2 47.5

50 54.6 53.7 52.9 52.0 51.2 50.4 49.6 48.8 48.0 47.3

51 54.5 53.6 52.7 51.9 51.0 50.2 49.4 48.6 47.8 47.0

52 54.4 53.5 52.6 51.7 50.9 50.0 49.2 48.4 47.6 46.8

53 54.3 53.4 52.5 51.6 50.8 49.9 49.1 48.2 47.4 46.6

54 54.2 53.3 52.4 51.5 50.6 49.8 48.9 48.1 47.2 46.4

55 54.1 53.2 52.3 51.4 50.5 49.7 48.8 47.9 47.1 46.3

56 54.0 53.1 52.2 51.3 50.4 49.5 48.7 47.8 47.0 46.1

57 54.0 53.0 52.1 51.2 50.3 49.4 48.6 47.7 46.8 46.0

58 53.9 53.0 52.1 51.2 50.3 49.4 48.5 47.6 46.7 45.8

59 53.8 52.9 52.0 51.1 50.2 49.3 48.4 47.5 46.6 45.7

60 53.8 52.9 51.9 51.0 50.1 49.2 48.3 47.4 46.5 45.6

61 53.8 52.8 51.9 51.0 50.0 49.1 48.2 47.3 46.4 45.5

62 53.7 52.8 51.8 50.9 50.0 49.1 48.1 47.2 46.3 45.4

63 53.7 52.7 51.8 50.9 49.9 49.0 48.1 47.2 46.3 45.3

64 53.6 52.7 51.8 50.8 49.9 48.9 48.0 47.1 46.2 45.3

65 53.6 52.7 51.7 50.8 49.8 48.9 48.0 47.0 46.1 45.2

66 53.6 52.6 51.7 50.7 49.8 48.9 47.9 47.0 46.1 45.1

67 53.6 52.6 51.7 50.7 49.8 48.8 47.9 46.9 46.0 45.1

68 53.5 52.6 51.6 50.7 49.7 48.8 47.8 46.9 46.0 45.0

69 53.5 52.6 51.6 50.6 49.7 48.7 47.8 46.9 45.9 45.0

70 53.5 52.5 51.6 50.6 49.7 48.7 47.8 46.8 45.9 44.9

71 53.5 52.5 51.6 50.6 49.6 48.7 47.7 46.8 45.9 44.9

72 53.5 52.5 51.5 50.6 49.6 48.7 47.7 46.8 45.8 44.9

73 53.4 52.5 51.5 50.6 49.6 48.6 47.7 46.7 45.8 44.8

74 53.4 52.5 51.5 50.5 49.6 48.6 47.7 46.7 45.8 44.8

75 53.4 52.5 51.5 50.5 49.6 48.6 47.7 46.7 45.7 44.8

76 53.4 52.4 51.5 50.5 49.6 48.6 47.6 46.7 45.7 44.8

77 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.7 45.7 44.8

78 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.6 45.7 44.7

79 53.4 52.4 51.5 50.5 49.5 48.6 47.6 46.6 45.7 44.7

80 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.7 44.7

81 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.7 44.7

82 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7

83 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7

84 53.4 52.4 51.4 50.5 49.5 48.5 47.6 46.6 45.6 44.7

85 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.7

86 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

87 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

88 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

Publication 590 (2013) Page 99
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 30 31 32 33 34 35 36 37 38 39

89 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

90 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

91 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

92 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

93 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

94 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.6 45.6 44.6

95 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

96 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

97 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

98 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

99 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

100 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

101 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

102 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

103 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

104 53.3 52.4 51.4 50.4 49.5 48.5 47.5 46.5 45.6 44.6

105 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

106 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

107 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

108 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

109 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

110 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

111 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

112 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

113 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

114 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

115+ 53.3 52.4 51.4 50.4 49.4 48.5 47.5 46.5 45.6 44.6

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 40 41 42 43 44 45 46 47 48 49

40 50.2 49.8 49.3 48.9 48.5 48.1 47.7 47.4 47.1 46.8

41 49.8 49.3 48.8 48.3 47.9 47.5 47.1 46.7 46.4 46.1

42 49.3 48.8 48.3 47.8 47.3 46.9 46.5 46.1 45.8 45.4

43 48.9 48.3 47.8 47.3 46.8 46.3 45.9 45.5 45.1 44.8

44 48.5 47.9 47.3 46.8 46.3 45.8 45.4 44.9 44.5 44.2

45 48.1 47.5 46.9 46.3 45.8 45.3 44.8 44.4 44.0 43.6

46 47.7 47.1 46.5 45.9 45.4 44.8 44.3 43.9 43.4 43.0

47 47.4 46.7 46.1 45.5 44.9 44.4 43.9 43.4 42.9 42.4

Page 100 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 40 41 42 43 44 45 46 47 48 49

48 47.1 46.4 45.8 45.1 44.5 44.0 43.4 42.9 42.4 41.9

49 46.8 46.1 45.4 44.8 44.2 43.6 43.0 42.4 41.9 41.4

50 46.5 45.8 45.1 44.4 43.8 43.2 42.6 42.0 41.5 40.9

51 46.3 45.5 44.8 44.1 43.5 42.8 42.2 41.6 41.0 40.5

52 46.0 45.3 44.6 43.8 43.2 42.5 41.8 41.2 40.6 40.1

53 45.8 45.1 44.3 43.6 42.9 42.2 41.5 40.9 40.3 39.7

54 45.6 44.8 44.1 43.3 42.6 41.9 41.2 40.5 39.9 39.3

55 45.5 44.7 43.9 43.1 42.4 41.6 40.9 40.2 39.6 38.9

56 45.3 44.5 43.7 42.9 42.1 41.4 40.7 40.0 39.3 38.6

57 45.1 44.3 43.5 42.7 41.9 41.2 40.4 39.7 39.0 38.3

58 45.0 44.2 43.3 42.5 41.7 40.9 40.2 39.4 38.7 38.0

59 44.9 44.0 43.2 42.4 41.5 40.7 40.0 39.2 38.5 37.8

60 44.7 43.9 43.0 42.2 41.4 40.6 39.8 39.0 38.2 37.5

61 44.6 43.8 42.9 42.1 41.2 40.4 39.6 38.8 38.0 37.3

62 44.5 43.7 42.8 41.9 41.1 40.3 39.4 38.6 37.8 37.1

63 44.5 43.6 42.7 41.8 41.0 40.1 39.3 38.5 37.7 36.9

64 44.4 43.5 42.6 41.7 40.8 40.0 39.2 38.3 37.5 36.7

65 44.3 43.4 42.5 41.6 40.7 39.9 39.0 38.2 37.4 36.6

66 44.2 43.3 42.4 41.5 40.6 39.8 38.9 38.1 37.2 36.4

67 44.2 43.3 42.3 41.4 40.6 39.7 38.8 38.0 37.1 36.3

68 44.1 43.2 42.3 41.4 40.5 39.6 38.7 37.9 37.0 36.2

69 44.1 43.1 42.2 41.3 40.4 39.5 38.6 37.8 36.9 36.0

70 44.0 43.1 42.2 41.3 40.3 39.4 38.6 37.7 36.8 35.9

71 44.0 43.0 42.1 41.2 40.3 39.4 38.5 37.6 36.7 35.9

72 43.9 43.0 42.1 41.1 40.2 39.3 38.4 37.5 36.6 35.8

73 43.9 43.0 42.0 41.1 40.2 39.3 38.4 37.5 36.6 35.7

74 43.9 42.9 42.0 41.1 40.1 39.2 38.3 37.4 36.5 35.6

75 43.8 42.9 42.0 41.0 40.1 39.2 38.3 37.4 36.5 35.6

76 43.8 42.9 41.9 41.0 40.1 39.1 38.2 37.3 36.4 35.5

77 43.8 42.9 41.9 41.0 40.0 39.1 38.2 37.3 36.4 35.5

78 43.8 42.8 41.9 40.9 40.0 39.1 38.2 37.2 36.3 35.4

79 43.8 42.8 41.9 40.9 40.0 39.1 38.1 37.2 36.3 35.4

80 43.7 42.8 41.8 40.9 40.0 39.0 38.1 37.2 36.3 35.4

81 43.7 42.8 41.8 40.9 39.9 39.0 38.1 37.2 36.2 35.3

82 43.7 42.8 41.8 40.9 39.9 39.0 38.1 37.1 36.2 35.3

83 43.7 42.8 41.8 40.9 39.9 39.0 38.0 37.1 36.2 35.3

84 43.7 42.7 41.8 40.8 39.9 39.0 38.0 37.1 36.2 35.3

85 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.1 36.2 35.2

86 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.1 36.1 35.2

87 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.0 36.1 35.2

Publication 590 (2013) Page 101
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 40 41 42 43 44 45 46 47 48 49

88 43.7 42.7 41.8 40.8 39.9 38.9 38.0 37.0 36.1 35.2

89 43.7 42.7 41.7 40.8 39.8 38.9 38.0 37.0 36.1 35.2

90 43.7 42.7 41.7 40.8 39.8 38.9 38.0 37.0 36.1 35.2

91 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.2

92 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

93 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

94 43.7 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

95 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

96 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

97 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.1 35.1

98 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

99 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

100 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

101 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

102 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

103 43.6 42.7 41.7 40.8 39.8 38.9 37.9 37.0 36.0 35.1

104 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1

105 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1

106 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1

107 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1

108 43.6 42.7 41.7 40.8 39.8 38.8 37.9 37.0 36.0 35.1

109 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

110 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

111 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

112 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

113 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

114 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

115+ 43.6 42.7 41.7 40.7 39.8 38.8 37.9 37.0 36.0 35.1

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 50 51 52 53 54 55 56 57 58 59

50 40.4 40.0 39.5 39.1 38.7 38.3 38.0 37.6 37.3 37.1

51 40.0 39.5 39.0 38.5 38.1 37.7 37.4 37.0 36.7 36.4

52 39.5 39.0 38.5 38.0 37.6 37.2 36.8 36.4 36.0 35.7

53 39.1 38.5 38.0 37.5 37.1 36.6 36.2 35.8 35.4 35.1

54 38.7 38.1 37.6 37.1 36.6 36.1 35.7 35.2 34.8 34.5

55 38.3 37.7 37.2 36.6 36.1 35.6 35.1 34.7 34.3 33.9

56 38.0 37.4 36.8 36.2 35.7 35.1 34.7 34.2 33.7 33.3

Page 102 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 50 51 52 53 54 55 56 57 58 59

57 37.6 37.0 36.4 35.8 35.2 34.7 34.2 33.7 33.2 32.8

58 37.3 36.7 36.0 35.4 34.8 34.3 33.7 33.2 32.8 32.3

59 37.1 36.4 35.7 35.1 34.5 33.9 33.3 32.8 32.3 31.8

60 36.8 36.1 35.4 34.8 34.1 33.5 32.9 32.4 31.9 31.3

61 36.6 35.8 35.1 34.5 33.8 33.2 32.6 32.0 31.4 30.9

62 36.3 35.6 34.9 34.2 33.5 32.9 32.2 31.6 31.1 30.5

63 36.1 35.4 34.6 33.9 33.2 32.6 31.9 31.3 30.7 30.1

64 35.9 35.2 34.4 33.7 33.0 32.3 31.6 31.0 30.4 29.8

65 35.8 35.0 34.2 33.5 32.7 32.0 31.4 30.7 30.0 29.4

66 35.6 34.8 34.0 33.3 32.5 31.8 31.1 30.4 29.8 29.1

67 35.5 34.7 33.9 33.1 32.3 31.6 30.9 30.2 29.5 28.8

68 35.3 34.5 33.7 32.9 32.1 31.4 30.7 29.9 29.2 28.6

69 35.2 34.4 33.6 32.8 32.0 31.2 30.5 29.7 29.0 28.3

70 35.1 34.3 33.4 32.6 31.8 31.1 30.3 29.5 28.8 28.1

71 35.0 34.2 33.3 32.5 31.7 30.9 30.1 29.4 28.6 27.9

72 34.9 34.1 33.2 32.4 31.6 30.8 30.0 29.2 28.4 27.7

73 34.8 34.0 33.1 32.3 31.5 30.6 29.8 29.1 28.3 27.5

74 34.8 33.9 33.0 32.2 31.4 30.5 29.7 28.9 28.1 27.4

75 34.7 33.8 33.0 32.1 31.3 30.4 29.6 28.8 28.0 27.2

76 34.6 33.8 32.9 32.0 31.2 30.3 29.5 28.7 27.9 27.1

77 34.6 33.7 32.8 32.0 31.1 30.3 29.4 28.6 27.8 27.0

78 34.5 33.6 32.8 31.9 31.0 30.2 29.3 28.5 27.7 26.9

79 34.5 33.6 32.7 31.8 31.0 30.1 29.3 28.4 27.6 26.8

80 34.5 33.6 32.7 31.8 30.9 30.1 29.2 28.4 27.5 26.7

81 34.4 33.5 32.6 31.8 30.9 30.0 29.2 28.3 27.5 26.6

82 34.4 33.5 32.6 31.7 30.8 30.0 29.1 28.3 27.4 26.6

83 34.4 33.5 32.6 31.7 30.8 29.9 29.1 28.2 27.4 26.5

84 34.3 33.4 32.5 31.7 30.8 29.9 29.0 28.2 27.3 26.5

85 34.3 33.4 32.5 31.6 30.7 29.9 29.0 28.1 27.3 26.4

86 34.3 33.4 32.5 31.6 30.7 29.8 29.0 28.1 27.2 26.4

87 34.3 33.4 32.5 31.6 30.7 29.8 28.9 28.1 27.2 26.4

88 34.3 33.4 32.5 31.6 30.7 29.8 28.9 28.0 27.2 26.3

89 34.3 33.3 32.4 31.5 30.7 29.8 28.9 28.0 27.2 26.3

90 34.2 33.3 32.4 31.5 30.6 29.8 28.9 28.0 27.1 26.3

91 34.2 33.3 32.4 31.5 30.6 29.7 28.9 28.0 27.1 26.3

92 34.2 33.3 32.4 31.5 30.6 29.7 28.8 28.0 27.1 26.2

93 34.2 33.3 32.4 31.5 30.6 29.7 28.8 28.0 27.1 26.2

94 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.1 26.2

95 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.1 26.2

96 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2

Publication 590 (2013) Page 103
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 50 51 52 53 54 55 56 57 58 59

97 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2

98 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2

99 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.2

100 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.1

101 34.2 33.3 32.4 31.5 30.6 29.7 28.8 27.9 27.0 26.1

102 34.2 33.3 32.4 31.4 30.5 29.7 28.8 27.9 27.0 26.1

103 34.2 33.3 32.4 31.4 30.5 29.7 28.8 27.9 27.0 26.1

104 34.2 33.3 32.4 31.4 30.5 29.6 28.8 27.9 27.0 26.1

105 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1

106 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1

107 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1

108 34.2 33.3 32.3 31.4 30.5 29.6 28.8 27.9 27.0 26.1

109 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

110 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

111 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

112 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

113 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

114 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

115+ 34.2 33.3 32.3 31.4 30.5 29.6 28.7 27.9 27.0 26.1

Table II (continued)

(Joint Life and Last Survivor Expectancy)

(For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 60 61 62 63 64 65 66 67 68 69

60 30.9 30.4 30.0 29.6 29.2 28.8 28.5 28.2 27.9 27.6

61 30.4 29.9 29.5 29.0 28.6 28.3 27.9 27.6 27.3 27.0

62 30.0 29.5 29.0 28.5 28.1 27.7 27.3 27.0 26.7 26.4

63 29.6 29.0 28.5 28.1 27.6 27.2 26.8 26.4 26.1 25.7

64 29.2 28.6 28.1 27.6 27.1 26.7 26.3 25.9 25.5 25.2

65 28.8 28.3 27.7 27.2 26.7 26.2 25.8 25.4 25.0 24.6

66 28.5 27.9 27.3 26.8 26.3 25.8 25.3 24.9 24.5 24.1

67 28.2 27.6 27.0 26.4 25.9 25.4 24.9 24.4 24.0 23.6

68 27.9 27.3 26.7 26.1 25.5 25.0 24.5 24.0 23.5 23.1

69 27.6 27.0 26.4 25.7 25.2 24.6 24.1 23.6 23.1 22.6

70 27.4 26.7 26.1 25.4 24.8 24.3 23.7 23.2 22.7 22.2

71 27.2 26.5 25.8 25.2 24.5 23.9 23.4 22.8 22.3 21.8

72 27.0 26.3 25.6 24.9 24.3 23.7 23.1 22.5 22.0 21.4

73 26.8 26.1 25.4 24.7 24.0 23.4 22.8 22.2 21.6 21.1

74 26.6 25.9 25.2 24.5 23.8 23.1 22.5 21.9 21.3 20.8

75 26.5 25.7 25.0 24.3 23.6 22.9 22.3 21.6 21.0 20.5

Page 104 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

(For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 60 61 62 63 64 65 66 67 68 69

76 26.3 25.6 24.8 24.1 23.4 22.7 22.0 21.4 20.8 20.2

77 26.2 25.4 24.7 23.9 23.2 22.5 21.8 21.2 20.6 19.9

78 26.1 25.3 24.6 23.8 23.1 22.4 21.7 21.0 20.3 19.7

79 26.0 25.2 24.4 23.7 22.9 22.2 21.5 20.8 20.1 19.5

80 25.9 25.1 24.3 23.6 22.8 22.1 21.3 20.6 20.0 19.3

81 25.8 25.0 24.2 23.4 22.7 21.9 21.2 20.5 19.8 19.1

82 25.8 24.9 24.1 23.4 22.6 21.8 21.1 20.4 19.7 19.0

83 25.7 24.9 24.1 23.3 22.5 21.7 21.0 20.2 19.5 18.8

84 25.6 24.8 24.0 23.2 22.4 21.6 20.9 20.1 19.4 18.7

85 25.6 24.8 23.9 23.1 22.3 21.6 20.8 20.1 19.3 18.6

86 25.5 24.7 23.9 23.1 22.3 21.5 20.7 20.0 19.2 18.5

87 25.5 24.7 23.8 23.0 22.2 21.4 20.7 19.9 19.2 18.4

88 25.5 24.6 23.8 23.0 22.2 21.4 20.6 19.8 19.1 18.3

89 25.4 24.6 23.8 22.9 22.1 21.3 20.5 19.8 19.0 18.3

90 25.4 24.6 23.7 22.9 22.1 21.3 20.5 19.7 19.0 18.2

91 25.4 24.5 23.7 22.9 22.1 21.3 20.5 19.7 18.9 18.2

92 25.4 24.5 23.7 22.9 22.0 21.2 20.4 19.6 18.9 18.1

93 25.4 24.5 23.7 22.8 22.0 21.2 20.4 19.6 18.8 18.1

94 25.3 24.5 23.6 22.8 22.0 21.2 20.4 19.6 18.8 18.0

95 25.3 24.5 23.6 22.8 22.0 21.1 20.3 19.6 18.8 18.0

96 25.3 24.5 23.6 22.8 21.9 21.1 20.3 19.5 18.8 18.0

97 25.3 24.5 23.6 22.8 21.9 21.1 20.3 19.5 18.7 18.0

98 25.3 24.4 23.6 22.8 21.9 21.1 20.3 19.5 18.7 17.9

99 25.3 24.4 23.6 22.7 21.9 21.1 20.3 19.5 18.7 17.9

100 25.3 24.4 23.6 22.7 21.9 21.1 20.3 19.5 18.7 17.9

101 25.3 24.4 23.6 22.7 21.9 21.1 20.2 19.4 18.7 17.9

102 25.3 24.4 23.6 22.7 21.9 21.1 20.2 19.4 18.6 17.9

103 25.3 24.4 23.6 22.7 21.9 21.0 20.2 19.4 18.6 17.9

104 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8

105 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8

106 25.3 24.4 23.5 22.7 21.9 21.0 20.2 19.4 18.6 17.8

107 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

108 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

109 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

110 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

111 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

112 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

113 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

114 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

115+ 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8

Publication 590 (2013) Page 105
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

(For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 70 71 72 73 74 75 76 77 78 79

70 21.8 21.3 20.9 20.6 20.2 19.9 19.6 19.4 19.1 18.9

71 21.3 20.9 20.5 20.1 19.7 19.4 19.1 18.8 18.5 18.3

72 20.9 20.5 20.0 19.6 19.3 18.9 18.6 18.3 18.0 17.7

73 20.6 20.1 19.6 19.2 18.8 18.4 18.1 17.8 17.5 17.2

74 20.2 19.7 19.3 18.8 18.4 18.0 17.6 17.3 17.0 16.7

75 19.9 19.4 18.9 18.4 18.0 17.6 17.2 16.8 16.5 16.2

76 19.6 19.1 18.6 18.1 17.6 17.2 16.8 16.4 16.0 15.7

77 19.4 18.8 18.3 17.8 17.3 16.8 16.4 16.0 15.6 15.3

78 19.1 18.5 18.0 17.5 17.0 16.5 16.0 15.6 15.2 14.9

79 18.9 18.3 17.7 17.2 16.7 16.2 15.7 15.3 14.9 14.5

80 18.7 18.1 17.5 16.9 16.4 15.9 15.4 15.0 14.5 14.1

81 18.5 17.9 17.3 16.7 16.2 15.6 15.1 14.7 14.2 13.8

82 18.3 17.7 17.1 16.5 15.9 15.4 14.9 14.4 13.9 13.5

83 18.2 17.5 16.9 16.3 15.7 15.2 14.7 14.2 13.7 13.2

84 18.0 17.4 16.7 16.1 15.5 15.0 14.4 13.9 13.4 13.0

85 17.9 17.3 16.6 16.0 15.4 14.8 14.3 13.7 13.2 12.8

86 17.8 17.1 16.5 15.8 15.2 14.6 14.1 13.5 13.0 12.5

87 17.7 17.0 16.4 15.7 15.1 14.5 13.9 13.4 12.9 12.4

88 17.6 16.9 16.3 15.6 15.0 14.4 13.8 13.2 12.7 12.2

89 17.6 16.9 16.2 15.5 14.9 14.3 13.7 13.1 12.6 12.0

90 17.5 16.8 16.1 15.4 14.8 14.2 13.6 13.0 12.4 11.9

91 17.4 16.7 16.0 15.4 14.7 14.1 13.5 12.9 12.3 11.8

92 17.4 16.7 16.0 15.3 14.6 14.0 13.4 12.8 12.2 11.7

93 17.3 16.6 15.9 15.2 14.6 13.9 13.3 12.7 12.1 11.6

94 17.3 16.6 15.9 15.2 14.5 13.9 13.2 12.6 12.0 11.5

95 17.3 16.5 15.8 15.1 14.5 13.8 13.2 12.6 12.0 11.4

96 17.2 16.5 15.8 15.1 14.4 13.8 13.1 12.5 11.9 11.3

97 17.2 16.5 15.8 15.1 14.4 13.7 13.1 12.5 11.9 11.3

98 17.2 16.4 15.7 15.0 14.3 13.7 13.0 12.4 11.8 11.2

99 17.2 16.4 15.7 15.0 14.3 13.6 13.0 12.4 11.8 11.2

100 17.1 16.4 15.7 15.0 14.3 13.6 12.9 12.3 11.7 11.1

101 17.1 16.4 15.6 14.9 14.2 13.6 12.9 12.3 11.7 11.1

102 17.1 16.4 15.6 14.9 14.2 13.5 12.9 12.2 11.6 11.0

103 17.1 16.3 15.6 14.9 14.2 13.5 12.9 12.2 11.6 11.0

104 17.1 16.3 15.6 14.9 14.2 13.5 12.8 12.2 11.6 11.0

105 17.1 16.3 15.6 14.9 14.2 13.5 12.8 12.2 11.5 10.9

106 17.1 16.3 15.6 14.8 14.1 13.5 12.8 12.2 11.5 10.9

107 17.0 16.3 15.6 14.8 14.1 13.4 12.8 12.1 11.5 10.9

108 17.0 16.3 15.5 14.8 14.1 13.4 12.8 12.1 11.5 10.9

109 17.0 16.3 15.5 14.8 14.1 13.4 12.8 12.1 11.5 10.9

Page 106 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

(For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 70 71 72 73 74 75 76 77 78 79

110 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.9

111 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.8

112 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.5 10.8

113 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8

114 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8

115+ 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 80 81 82 83 84 85 86 87 88 89

80 13.8 13.4 13.1 12.8 12.6 12.3 12.1 11.9 11.7 11.5

81 13.4 13.1 12.7 12.4 12.2 11.9 11.7 11.4 11.3 11.1

82 13.1 12.7 12.4 12.1 11.8 11.5 11.3 11.0 10.8 10.6

83 12.8 12.4 12.1 11.7 11.4 11.1 10.9 10.6 10.4 10.2

84 12.6 12.2 11.8 11.4 11.1 10.8 10.5 10.3 10.1 9.9

85 12.3 11.9 11.5 11.1 10.8 10.5 10.2 9.9 9.7 9.5

86 12.1 11.7 11.3 10.9 10.5 10.2 9.9 9.6 9.4 9.2

87 11.9 11.4 11.0 10.6 10.3 9.9 9.6 9.4 9.1 8.9

88 11.7 11.3 10.8 10.4 10.1 9.7 9.4 9.1 8.8 8.6

89 11.5 11.1 10.6 10.2 9.9 9.5 9.2 8.9 8.6 8.3

90 11.4 10.9 10.5 10.1 9.7 9.3 9.0 8.6 8.3 8.1

91 11.3 10.8 10.3 9.9 9.5 9.1 8.8 8.4 8.1 7.9

92 11.2 10.7 10.2 9.8 9.3 9.0 8.6 8.3 8.0 7.7

93 11.1 10.6 10.1 9.6 9.2 8.8 8.5 8.1 7.8 7.5

94 11.0 10.5 10.0 9.5 9.1 8.7 8.3 8.0 7.6 7.3

95 10.9 10.4 9.9 9.4 9.0 8.6 8.2 7.8 7.5 7.2

96 10.8 10.3 9.8 9.3 8.9 8.5 8.1 7.7 7.4 7.1

97 10.7 10.2 9.7 9.2 8.8 8.4 8.0 7.6 7.3 6.9

98 10.7 10.1 9.6 9.2 8.7 8.3 7.9 7.5 7.1 6.8

99 10.6 10.1 9.6 9.1 8.6 8.2 7.8 7.4 7.0 6.7

100 10.6 10.0 9.5 9.0 8.5 8.1 7.7 7.3 6.9 6.6

101 10.5 10.0 9.4 9.0 8.5 8.0 7.6 7.2 6.9 6.5

102 10.5 9.9 9.4 8.9 8.4 8.0 7.5 7.1 6.8 6.4

103 10.4 9.9 9.4 8.8 8.4 7.9 7.5 7.1 6.7 6.3

104 10.4 9.8 9.3 8.8 8.3 7.9 7.4 7.0 6.6 6.3

105 10.4 9.8 9.3 8.8 8.3 7.8 7.4 7.0 6.6 6.2

106 10.3 9.8 9.2 8.7 8.2 7.8 7.3 6.9 6.5 6.2

107 10.3 9.8 9.2 8.7 8.2 7.7 7.3 6.9 6.5 6.1

108 10.3 9.7 9.2 8.7 8.2 7.7 7.3 6.8 6.4 6.1

109 10.3 9.7 9.2 8.7 8.2 7.7 7.2 6.8 6.4 6.0

110 10.3 9.7 9.2 8.6 8.1 7.7 7.2 6.8 6.4 6.0

111 10.3 9.7 9.1 8.6 8.1 7.6 7.2 6.8 6.3 6.0

112 10.2 9.7 9.1 8.6 8.1 7.6 7.2 6.7 6.3 5.9

113 10.2 9.7 9.1 8.6 8.1 7.6 7.2 6.7 6.3 5.9

114 10.2 9.7 9.1 8.6 8.1 7.6 7.1 6.7 6.3 5.9

115+ 10.2 9.7 9.1 8.6 8.1 7.6 7.1 6.7 6.3 5.9

Publication 590 (2013) Page 107
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 90 91 92 93 94 95 96 97 98 99

90 7.8 7.6 7.4 7.2 7.1 6.9 6.8 6.6 6.5 6.4

91 7.6 7.4 7.2 7.0 6.8 6.7 6.5 6.4 6.3 6.1

92 7.4 7.2 7.0 6.8 6.6 6.4 6.3 6.1 6.0 5.9

93 7.2 7.0 6.8 6.6 6.4 6.2 6.1 5.9 5.8 5.6

94 7.1 6.8 6.6 6.4 6.2 6.0 5.9 5.7 5.6 5.4

95 6.9 6.7 6.4 6.2 6.0 5.8 5.7 5.5 5.4 5.2

96 6.8 6.5 6.3 6.1 5.9 5.7 5.5 5.3 5.2 5.0

97 6.6 6.4 6.1 5.9 5.7 5.5 5.3 5.2 5.0 4.9

98 6.5 6.3 6.0 5.8 5.6 5.4 5.2 5.0 4.8 4.7

99 6.4 6.1 5.9 5.6 5.4 5.2 5.0 4.9 4.7 4.5

100 6.3 6.0 5.8 5.5 5.3 5.1 4.9 4.7 4.5 4.4

101 6.2 5.9 5.6 5.4 5.2 5.0 4.8 4.6 4.4 4.2

102 6.1 5.8 5.5 5.3 5.1 4.8 4.6 4.4 4.3 4.1

103 6.0 5.7 5.4 5.2 5.0 4.7 4.5 4.3 4.1 4.0

104 5.9 5.6 5.4 5.1 4.9 4.6 4.4 4.2 4.0 3.8

105 5.9 5.6 5.3 5.0 4.8 4.5 4.3 4.1 3.9 3.7

106 5.8 5.5 5.2 4.9 4.7 4.5 4.2 4.0 3.8 3.6

107 5.8 5.4 5.1 4.9 4.6 4.4 4.2 3.9 3.7 3.5

108 5.7 5.4 5.1 4.8 4.6 4.3 4.1 3.9 3.7 3.5

109 5.7 5.3 5.0 4.8 4.5 4.3 4.0 3.8 3.6 3.4

110 5.6 5.3 5.0 4.7 4.5 4.2 4.0 3.8 3.5 3.3

111 5.6 5.3 5.0 4.7 4.4 4.2 3.9 3.7 3.5 3.3

112 5.6 5.3 4.9 4.7 4.4 4.1 3.9 3.7 3.5 3.2

113 5.6 5.2 4.9 4.6 4.4 4.1 3.9 3.6 3.4 3.2

114 5.6 5.2 4.9 4.6 4.3 4.1 3.9 3.6 3.4 3.2

115+ 5.5 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.1

Page 108 Publication 590 (2013)
Appendix C. (Continued)

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 100 101 102 103 104 105 106 107 108 109

100 4.2 4.1 3.9 3.8 3.7 3.5 3.4 3.3 3.3 3.2

101 4.1 3.9 3.7 3.6 3.5 3.4 3.2 3.1 3.1 3.0

102 3.9 3.7 3.6 3.4 3.3 3.2 3.1 3.0 2.9 2.8

103 3.8 3.6 3.4 3.3 3.2 3.0 2.9 2.8 2.7 2.6

104 3.7 3.5 3.3 3.2 3.0 2.9 2.7 2.6 2.5 2.4

105 3.5 3.4 3.2 3.0 2.9 2.7 2.6 2.5 2.4 2.3

106 3.4 3.2 3.1 2.9 2.7 2.6 2.4 2.3 2.2 2.1

107 3.3 3.1 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.0

108 3.3 3.1 2.9 2.7 2.5 2.4 2.2 2.1 1.9 1.8

109 3.2 3.0 2.8 2.6 2.4 2.3 2.1 2.0 1.8 1.7

110 3.1 2.9 2.7 2.5 2.3 2.2 2.0 1.9 1.7 1.6

111 3.1 2.9 2.7 2.5 2.3 2.1 1.9 1.8 1.6 1.5

112 3.0 2.8 2.6 2.4 2.2 2.0 1.9 1.7 1.5 1.4

113 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.5 1.3

114 3.0 2.7 2.5 2.3 2.1 1.9 1.8 1.6 1.4 1.3

115+ 2.9 2.7 2.5 2.3 2.1 1.9 1.7 1.5 1.4 1.2

Table II (continued)

(Joint Life and Last Survivor Expectancy)

 (For Use by Owners Whose Spouses Are More Than 10 Years Younger and Are the Sole Beneficiaries of Their IRAs)

Ages 110 111 112 113 114 115+

110 1.5 1.4 1.3 1.2 1.1 1.1

111 1.4 1.2 1.1 1.1 1.0 1.0

112 1.3 1.1 1.0 1.0 1.0 1.0

113 1.2 1.1 1.0 1.0 1.0 1.0

114 1.1 1.0 1.0 1.0 1.0 1.0

115+ 1.1 1.0 1.0 1.0 1.0 1.0

Publication 590 (2013) Page 109
Appendix C. Uniform Lifetime Table

Table III

(Uniform Lifetime)

(For Use by:

Unmarried Owners,

Married Owners Whose Spouses Are Not More Than 10 Years Younger, and

Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs)

Age Distribution Period Age Distribution Period

70 27.4 93 9.6

71 26.5 94 9.1

72 25.6 95 8.6

73 24.7 96 8.1

74 23.8 97 7.6

75 22.9 98 7.1

76 22.0 99 6.7

77 21.2 100 6.3

78 20.3 101 5.9

79 19.5 102 5.5

80 18.7 103 5.2

81 17.9 104 4.9

82 17.1 105 4.5

83 16.3 106 4.2

84 15.5 107 3.9

85 14.8 108 3.7

86 14.1 109 3.4

87 13.4 110 3.1

88 12.7 111 2.9

89 12.0 112 2.6

90 11.4 113 2.4

91 10.8 114 2.1

92 10.2 115 and over 1.9

Page 110 Publication 590 (2013)
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

10% additional tax 33, 56, 59

20% withholding 27

2­year rule:

SIMPLE IRAs 79

5­year rule 38, 39

6% excise tax on excess 

contributions to Roth IRAs 67

60­day period for rollovers 24

A

Account balance 35

Additional taxes 51, 59

 (See also Penalties)

Reporting 62

Adjusted gross income (AGI) 16, 

64

 (See also Modified adjusted gross 

income (AGI))

Retirement savings contributions 

credit 80

Age 50:

Contributions 10

Age 59 1/2 rule 56

Age 70 1/2 rule 12

Required minimum distributions 35

Age limit:

Traditional IRA 11

Airline payments 70

Alimony 8

Annuity contracts 11

Borrowing on 51

Distribution from insurance 

company 41

Distribution from IRA account 50

Early distributions 57

Assistance (See Tax help)

B

Basis:

Inherited IRAs 22

Roth IRAs 70

Traditional IRAs 18

Beginning date, required 35

Beneficiaries 36–39

Change of 35

Death of beneficiary 37

Early distributions to 57

Individual as 38

More than one 37, 40

Not an individual 38

Roth IRAs 76

Sole beneficiary spouse more than 

10 years younger 36

Bond purchase plans:

Rollovers from 29

Bonds, retirement (See Individual 

retirement bonds)

Broker's commissions 10, 12

C

Change in marital status 35

Change of beneficiary 35

Charitable distributions, 

qualified 41

Collectibles 52

Community property 10

Compensation:

Alimony 8

Defined 8

Income included (Table 1-1) 8

Nontaxable combat pay 8

Self-employment 8

Wages, salaries, etc. 8

Conduit IRAs 27

Contribution limits:

More than one IRA 11

Contributions:

Designating the year 12

Distributions in same year as 16

Excess (See Excess contributions)

Less than maximum 11

Matching (SIMPLE) 78

Nondeductible (See Nondeductible 

contributions)

Not required 12

Qualified reservist repayments 10

Recharacterizing (See Recharacteri

zation)

Retirement savings contributions 

credit 80

Roth IRAs 63–68

SIMPLE plans 78, 79

Traditional IRAs 10, 11

When to contribute 11

Withdrawing before due date of 

return 33

Conversions:

From SIMPLE IRAs 79

To Roth IRAs 68

Credits:

Retirement savings contributions 

credit 80, 81

D

Death of beneficiary 37

Deductions:

Figuring reduced IRA deduction 16

Phaseout 14

Traditional IRAs 12–18

Deemed IRAs 3, 63

Defined benefit plans 13

Defined contribution plans 13

Disabilities, persons with:

Early distributions to 57

Distributions:

After required beginning date 35

Age 59 1/2 rule 56

Beneficiaries (See Beneficiaries)

Contributions in same year as 16

Delivered outside U.S. 50

Figuring nontaxable and taxable 

amounts 43

From individual retirement 

accounts 35

From individual retirement 

annuities 35

Fully or partly taxable 43

Income from 16

Inherited IRAs (See Inherited IRAs)

Insufficient 59

Qualified charitable 41

Qualified HSA funding 42

Qualified reservist 59

Roth IRAs 70–75

Ordering rules for 73

Recapture amount 73

SIMPLE IRAs 79

Taxable status of 41

Divorce:

Rollovers by former spouse 28

Transfers incident to 29

E

Early distributions 51, 56–59

 (See also Penalties)

Age 59 1/2 rule 56

Defined 56

Disability exception 57

First-time homebuyers, 

exception 58

Higher education expenses, 

exception 58

Medical insurance, exception 57

Roth IRAs 71

SIMPLE IRAs 80

Tax 33

Unreimbursed medical expenses, 

exception 57

Education expenses 58

Employer and employee 

association trust accounts 9

Employer plans:

Covered by 13

Year(s) covered 13

Employer retirement plans 13

Defined benefit plans 13

Defined contribution plans 13

Publication 590 (2013) Page 111
Effect of modified AGI on deduction 

(Table 1-2) 15

Limit if covered by 14

Prohibited transactions 51

Endowment contracts (See Annuity 

contracts)

Estate tax 51

Deduction for inherited IRAs 22

Excess accumulations 59–62

Roth IRAs 76

Excess contributions 52–56

Closed tax year 56

Deducted in earlier year 55

Deductible this year (Worksheet 

1-6) 55

Deductible this year if any were 

deducted in closed tax year 

(Worksheet 1-7) 56

Deducting in a later year 55

Due to incorrect rollover 

information 55

Recharacterizing 30

Roth IRAs 67

Tax 34

Withdrawn after due date of 

return 55

Withdrawn by due date of return 53

Exempt transactions 52

Exxon Valdez settlement 

income 29, 70

F

Failed financial institutions 41

Federal judges 13

Fiduciaries:

Prohibited transactions 51

Filing before IRA contribution is 

made 12

Filing status 11

Deduction phaseout and 16

Firefighters, volunteer 14

First­time homebuyers 58

Five­year rule (See 5-year rule)

Form 1040:

Modified AGI calculation from 16

Form 1040A:

Modified AGI calculation from 16

Form 1099­R 50

Distribution code 1 used on 62

Letter codes used on 50

Number codes used on 50

Withdrawal of excess 

contribution 53

Form 5329 59, 62

Recapture tax 57

Form 8606 17, 43, 48

Failure to file, penalty 17

Form 8880 81

Form W­2:

Employer retirement plans 13

Free tax services 81

Frozen deposits 25

Full­time student:

Retirement savings contributions 

credit 80

H

Help (See Tax help)

Higher education expenses 58

How to:

Set up an IRA 8

Treat withdrawn contributions 53

HSA funding distributions, 

qualified 42

I

Individual retirement accounts 9

Distributions from 35

Individual retirement annuities 9

Distributions from 35

Individual retirement arrangements 

(IRAs):

How to set up 8

When to set up 8

Individual retirement bonds 9

Cashing in 50

Inherited IRAs 18–22

Rollovers 25

Insufficient distributions 59

Interest on IRA 3

Investment in collectibles:

Collectibles defined 52

Exception 52

K

Kay Bailey Hutchison Spousal 

IRAs:

Contribution limits 11

Deductions 12

Roth IRA contribution limits 64

Keogh plans:

Rollovers from 28

L

Last­in first­out rule 33

Life expectancy 36

Tables (Appendix C) 94

Life insurance 28

Losses:

Roth IRAs 76

Traditional IRAs 48

M

Marital status, change in 35

Matching contributions 

(SIMPLE) 78

Medical expenses, 

unreimbursed 57

Medical insurance 57

Military death gratuities 69

Minimum distribution (See Required 

minimum distribution)

Missing children, photographs of 3

Modified adjusted gross income 

(AGI):

Employer retirement plan coverage 

and deduction (Table 1-2) 15

Figuring (Worksheet 1-1) 17

No employer retirement plan 

coverage and deduction 

(Table 1-3) 15

Roth IRAs 64

Effect on contribution amount 

(Table 2-1) 66

More than one beneficiary 37

More than one IRA 11

Recharacterization 32

Required minimum distribution 40

N

Nondeductible contributions 17, 59

Failure to report 17

Overstatement penalty 17

Notice:

Qualified employer plan to provide 

prior to rollover distribution 26

Rollovers 23

P

Partial rollovers 25, 28

Penalties 51–62

Early distributions 56–59

Excess accumulations 59–62

Excess contributions 52–56

Roth IRAs 67

Exempt transactions 52

Failure to file Form 8606 17

Overstatement of nondeductible 

contributions 17

Prohibited transactions 51, 52

Reporting 62

SIMPLE IRAs 80

Phaseout of deduction 14

Pledging account as security 51

Prohibited transactions 51, 52

Taxes on 52

Publications (See Tax help)

Q

Qualified charitable 

distributions 41

Qualified domestic relations orders 

(QDROs) 28

Qualified settlement income 29, 70

Page 112 Publication 590 (2013)
R

Recapture tax:

Changes in distribution method 57

Receivership distributions 57

Recharacterization 30–32

Determining amount of net income 

due to contribution and total 

amount to be recharacterized 

(Worksheet 1-3) 31

Reporting 32

SIMPLE employer contributions 79

Timing of 32

Reconversion 31

Recordkeeping requirements:

Summary record of traditional IRAs 

for 2013 (Appendix A) 86

Traditional IRAs 18

Reporting:

Additional taxes 62

Deductible contributions 17

Nontaxable distribution on Form 

8606 43

Recharacterization 32

Rollovers:

From employer plans 29

From IRAs 25

Taxable amounts 50

Taxable distributions 51

Required beginning date 35

Required minimum distribution 3, 

34–41

Distribution period 35

During lifetime 36

Figuring 35

For beneficiary 38

Table to use 39

Installments allowed 40

In year of owner's death 36

More than one IRA 40

Sole beneficiary spouse who is 

more than 10 years younger 36

Reservists 14

Qualified reservist distribution 59

Qualified reservist repayments 10

Retirement bonds (See Individual 

retirement bonds)

Retirement savings contributions 

credit 80, 81

Rollovers 22–29

Airline payments 70

Amount 24

Choosing an option (Table 1-5) 27

Completed after 60-day period 24

Conduit IRAs 27

Direct rollover option 27

Extension of period 24

From bond purchase plan 29

From employer's plan into an 

IRA 26

From employer's plan into a Roth 

IRA 69

From Keogh plans 28

From one IRA into another 25

From Roth IRAs 69

From traditional IRA 23

Inherited IRAs 25

Nonspouse beneficiary 26

Notice 23

Partial 25, 28

SIMPLE IRAs 79

Tax treatment of rollover from 

traditional IRA to eligible 

retirement plan other than an 

IRA 23

Time limit 24

To Roth IRAs 68

To traditional IRA 23

Waiting period between 25, 27

Withholding (See Withholding)

Roth IRAs 62–76

Age limit 64

Contribution limit reduced 64

Determining reduced limit 

(Worksheet 2-2) 67

Contributions 63–68

Timing of 64

To traditional IRAs and to Roth 

IRAs 64

Conversion 29, 30, 68

Defined 63

Distributions 70–75

After death of owner 76

Insufficient 76

Ordering rules for 73

Early distributions 71

Excess accumulations 76

Excess contributions 67

Figuring taxable part 75

Losses 76

Modified AGI:

Effect on contribution amount 

(Table 2-1) 66

Figuring (Worksheet 2-1) 65

Rollovers from 69

Setting up 63

Spouse 64

Traditional IRAs converted into 29

Withdrawing or using assets 75

S

Salary reduction arrangement 77

Savings Incentive Match Plans for 

Employees (See SIMPLE IRAs)

Section 501(c)(18) plan 10, 11

Self­employed persons:

Deductible contributions 17

Income of 8

SIMPLE plans 77

Separated taxpayers:

Filing status of 16

SEP IRAs:

Recharacterizing to 30

Servicemembers group life 

insurance 69

Services received at reduced or no 

cost 52

SIMPLE IRAs 77–79

Contributions 78, 79

Conversion from 79

Distributions 79

Early distributions 61, 80

Eligible employees 77

Penalties 80

Recharacterizing to 30

Rollovers 79

Salary reduction contribution 

limits 78

Self-employed persons 77

SIMPLE plan, defined 77

Traditional IRA, mistakenly moved 

to 30, 79

Two-year rule 79

Withdrawing or using assets 79

Simplified employee pensions 

(SEPs) 9

Social Security recipients 14

Contributions to traditional IRAs, 

worksheet (Appendix B) 88, 91

Spousal IRAs (See Kay Bailey 

Hutchison Spousal IRAs or 

Inherited IRAs)

Students:

Education expenses 58

Retirement savings contributions 

credit 80

Surviving spouse 36, 39

Rollovers by 28

T

Table I (Single Life Expectancy) 94

Table II (Joint Life and Last 

Survivor Expectancy) 96

Table III (Uniform Lifetime) 110

Tables:

Compensation, types of 

(Table 1-1) 8

Life expectancy (Appendix C) 94

Modified AGI:

Employer retirement plan 

coverage and deduction 

(Table 1-2) 15

No employer retirement plan 

coverage and deduction 

(Table 1-3) 15

Roth IRAs, effect on contribution 

(Table 2-1) 66

Rollover vs. direct payment to 

taxpayer (Table 1-5) 27

Publication 590 (2013) Page 113
Using this publication (Table I-1) 5

Tax advantages of IRAs 3

Tax credits:

Retirement savings contributions 

credit 80, 81

Tax help 81

Tax­sheltered annuities:

Rollovers from 28

Tax year 13

Traditional IRAs 7–62

Age 59 1/2 rule 56

Contribution limits 10, 11

Contributions 10, 11

Due date 12

To Roth IRAs and to traditional 

IRAs 64

Converting into Roth IRA 29

Cost basis 18

Deductions 12–18

Defined 7

Disclosures 9

Excess contributions 52–56

Inherited IRAs 18–22

Losses 48

Loss of IRA status 52

Mistakenly moved to SIMPLE 

IRA 30, 79

Recordkeeping 18

Reduced IRA deduction for 

2013 18

Rollovers (See Rollovers)

Setting up 7–10

Social Security recipients 14, 88, 

91

Summary record for 2013 

(Appendix A) 86

Transfers 22

Types of 9

Withdrawing or using assets 32–34

Transfers 22

Divorce 29

To Roth IRAs 22, 68

Trustee to trustee 22, 68

Trustees' fees 10, 12

Trustee­to­trustee transfers 22

To Roth IRAs 68

Trusts:

As beneficiary 40

TTY/TDD information 81

Two­year rule:

SIMPLE IRAs 79

U

Unreimbursed medical 

expenses 57

V

Volunteer firefighters 14

W

Withdrawing or using assets:

Contribution withdrawal, before due 

date of return 33

Determining total amount to be 

withdrawn (Worksheet 1-4) 33

Roth IRAs 75

SIMPLE IRAs 79

Traditional IRAs 32–34

Withholding 50

Direct rollover option 27

Eligible rollover distribution paid to 

taxpayer 26

Worksheets:

Excess contributions deductible this 

year (Worksheet 1-6) 55

If any were deducted in closed 

tax year (Worksheet 1-7) 56

Figuring amount of net income due 

to IRA contribution and total 

amount to be recharacterized 

(Worksheet 1-3) 31

Figuring amount of net income due 

to IRA contribution and total 

amount to be withdrawn 

(Worksheet 1-4) 33

Figuring modified AGI (Worksheet 

1-1) 17

Roth IRAs:

Figuring modified AGI 

(Worksheet 2-1) 65

Figuring reduced contribution 

limit (Worksheet 2-2) 67

Social Security recipients who 

contribute to traditional IRAs 

(Appendix B) 88, 91

Page 114 Publication 590 (2013)