Department of the Treasury

Internal Revenue Service

Publication 590-A

Cat. No. 66302J

Contributions 

to Individual

Retirement

Arrangements

(IRAs)

For use in preparing

2023 Returns

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Contents

Future Developments ....................... 1

What's New for 2023 ........................ 1

What’s New for 2024 ........................ 2

Reminders ............................... 2

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

Chapter 1. Traditional IRAs .................. 6

Who Can Open a Traditional IRA? ............ 6

When Can a Traditional IRA Be Opened? ....... 7

How Can a Traditional IRA Be Opened? ........ 7

How Much Can Be Contributed? ............. 8

When Can Contributions Be Made? .......... 10

How Much Can You Deduct? ............... 11

What if You Inherit an IRA? ................ 20

Can You Move Retirement Plan Assets? ....... 20

When Can You Withdraw or Use Assets? ...... 30

What Acts Result in Penalties or Additional 

Taxes? ............................. 31

Chapter 2. Roth IRAs ..................... 37

What Is a Roth IRA? ..................... 38

When Can a Roth IRA Be Opened? .......... 38

Can You Contribute to a Roth IRA? ........... 38

Can You Move Amounts Into a Roth IRA? ...... 43

Chapter 3. Retirement Savings Contributions 

Credit (Saver's Credit) .................. 45

How To Get Tax Help ....................... 46

Appendices ............................. 51

Index .................................. 59

Future Developments

For the latest information about developments related to 

Pub. 590-A, such as legislation enacted after it was 

published, go to IRS.gov/Pub590A.

What's New for 2023

IRA contribution limit increased. Beginning in 2023, 

the IRA contribution limit is increased to $6,500 ($7,500 

for individuals age 50 or older) from $6,000 ($7,000 for individuals age 50 or older).

Increase in required minimum distribution age. Individuals who reach age 72 after December 31, 2022, may 

delay receiving their required minimum distributions until 

April 1 of the year following the year in which they turn age 

73.

Modified AGI limit for traditional IRA contributions. 

For 2023, if you are covered by a retirement plan at work, 

Mar 4, 2024
your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

• More than $116,000 but less than $136,000 for a married couple filing a joint return or a qualifying surviving 

spouse,

• More than $73,000 but less than $83,000 for a single 

individual or head of household, or

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

Modified AGI limit for certain married individuals. 

If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your 

spouse or file a joint return, your deduction is phased out if 

your modified AGI is more than $218,000 (up from 

$204,000 for 2022) but less than $228,000 (up from 

$214,000 for 2022). If your modified AGI is $228,000 or 

more, you can’t take a deduction for contributions to a traditional IRA.

Modified AGI limit for Roth IRA contributions. For 

2023, your Roth IRA contribution limit is reduced (phased 

out) in the following situations.

• Your filing status is married filing jointly or qualifying 

surviving spouse and your modified AGI is at least 

$218,000. You can’t make a Roth IRA contribution if 

your modified AGI is $228,000 or more.

• Your filing status is single, head of household, or married filing separately and you didn’t live with your 

spouse at any time in 2023 and your modified AGI is at 

least $138,000. You can’t make a Roth IRA contribution if your modified AGI is $153,000 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 zero. You can’t make a Roth 

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

more.

Qualified tuition program rollover to a Roth IRA. Beginning with distributions made after December 31, 2023, 

a beneficiary of a section 529 qualified tuition program is 

permitted to roll over a distribution from the section 529 

account to a Roth IRA for the beneficiary if certain requirements are met.

• The rollover must be paid through a trustee-to-trustee 

transfer.

• The rollover amount cannot be more than the Roth 

IRA annual contributions limit.

• The rollover must be from a section 529 account that 

has been open for more than 15 years.

The distribution is paid in a direct trustee-to-trustee 

transfer (rollover) to a Roth IRA maintained for the benefit 

of the designated beneficiary. The distribution cannot exceed the aggregate amount contributed to the program 

(and earnings attributed to the contributed amount) before 

the 5-year period ending on the date of the distribution.

A distribution made after December 31, 2023, and before April 15, 2024, that is rolled over to a Roth IRA by 

April 15, 2024, and designated for 2023 would be reported 

as a Roth IRA contribution for 2023.

For more information, see Trustee-to-Trustee Transfer 

and Can You Move Amounts Into a Roth IRA.

What’s New for 2024

IRA contribution limit increased for 2024. Beginning 

in 2024, the IRA contribution limit is increased to $7,000 

($8,000 for individuals age 50 or older) from $6,500 

($7,500 for individuals age 50 or older).

Modified AGI limit for traditional IRA contributions increased. For 2024, 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 $123,000 but less than $143,000 for a married couple filing a joint return or a qualifying surviving 

spouse,

• More than $77,000 but less than $87,000 for a single 

individual or head of household, or

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

Modified AGI limit for certain married individuals 

increased. If you are married and your spouse is covered 

by a retirement plan at work and you aren’t, and you live 

with your spouse or file a joint return, your deduction is 

phased out if your modified AGI is more than $230,000 

(up from $218,000 for 2023) but less than $240,000 (up 

from $228,000 for 2023). If your modified AGI is $240,000 

or more, you can’t take a deduction for contributions to a 

traditional IRA.

Modified AGI limit for Roth IRA contributions increased. For 2024, your Roth IRA contribution limit is reduced (phased out) in the following situations.

• Your filing status is married filing jointly or qualifying 

surviving spouse and your modified AGI is at least 

$230,000. You can’t make a Roth IRA contribution if 

your modified AGI is $240,000 or more.

• Your filing status is single, head of household, or married filing separately and you didn’t live with your 

spouse at any time in 2024 and your modified AGI is at 

least $146,000. You can’t make a Roth IRA contribution if your modified AGI is $161,000 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 zero. You can’t make a Roth 

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

more.

Reminders

Qualified disaster tax relief. The special rules that provide for tax-favored withdrawals and repayments from certain qualified plans for taxpayers who suffered an 

2 Publication 590-A (2023)
economic loss as a result of a qualified disaster were 

made permanent by the SECURE 2.0 Act of 2022.

A qualified disaster is a major disaster that occurred on 

or after January 26, 2021, and was declared by the President after December 27, 2020, under section 401 of the 

Robert T. Stafford Disaster Relief and Emergency Act. For 

more information, see Disaster-Related Relief in Pub. 

590-B, Distributions from Individual Retirement Arrangements (IRAs).

Certain corrective distributions not subject to 10% 

early distribution tax. Beginning on December 29, 

2022, the 10% additional tax on early distributions will not 

apply to a corrective IRA distribution, which consists of an 

excessive contribution (a contribution greater than the IRA 

contribution limit) and any earnings allocable to the excessive contribution, as long as the corrective distribution is 

made on or before the due date (including extensions) of 

the income tax return.

Divorce or separation instruments after 2018. 

Amounts paid as alimony or separate maintenance payments under a divorce or separation instrument executed 

after 2018 won't be deductible by the payer. Such 

amounts also won't be includible in the income of the recipient. The same is true of alimony paid under a divorce 

or separation instrument executed before 2019 and modified after 2018, if the modification expressly states that the 

alimony isn't deductible to the payer or includible in the income of the recipient. For more information, see Pub. 504.

IRA interest. Although interest earned from your IRA is 

generally not taxed in the year earned, it isn’t tax-exempt 

interest. Tax on your traditional IRA is generally deferred 

until you take a distribution. Don’t 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 IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). 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 contributions to individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside 

money for retirement. For information about distributions 

(including rollovers) from an IRA, see Pub. 590-B.

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) aren’t taxed until distributed. In some cases, amounts aren’t taxed at all if distributed according 

to the rules.

What's in this publication? This publication discusses 

contributions to traditional and Roth IRAs. It explains the 

rules for:

• Setting up an IRA,

• Contributing to an IRA,

• Transferring money or property to and 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 aren’t followed. To assist you in complying with the tax rules for IRAs, this publication contains 

worksheets and sample forms, which can be found 

throughout the publication and in the appendices at the 

end of the publication.

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 suggestions for future 

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue 

Service, Tax Forms and Publications, 1111 Constitution 

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or viewing the categories listed.

Getting tax forms, instructions, and publications. 

Go to IRS.gov/Forms to download current and prior-year 

forms, instructions, and publications.

Ordering tax forms, instructions, and publications. 

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order 

prior-year forms and instructions. The IRS will process 

your order for forms and publications as soon as possible. 

Don’t resubmit requests you’ve already sent us. You can 

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Publication 590-A (2023) 3
Useful Items

You may want to see:

Publications

Tax Withholding and Estimated Tax

Distributions from Individual Retirement 

Arrangements (IRAs)

Retirement Plans for Small Business (SEP, 

SIMPLE, and Qualified Plans)

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

Pension and Annuity Income

General Rule for Pensions and Annuities

Forms (and Instructions)

ithholding Certificate for Pension or Annuity 

Payments

Distributions From Pensions, Annuities, 

Retirement or Profit-Sharing Plans, IRAs, 

Insurance Contracts, etc.

avings Incentive Match Plan for 

Employees of Small Employers (SIMPLE)—Not 

for Use With a Designated Financial Institution

IMPLE Individual Retirement Trust Account

 505

 590-B

 560

 571

 575

 939

 W-4P

 1099-R

 5304-SIMPLE

 5305-S

IMPLE Individual Retirement Custodial 

Account

avings 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

Qualified 2018 Disaster Retirement Plan 

Distributions and Repayments

Qualified 2019 Disaster Retirement Plan 

Distributions and Repayments

Qualified Disaster Retirement Plan 

Distributions and Repayments

See How To Get Tax Help for information about getting 

these publications and forms.

 5305-SA

 5305-SIMPLE

 5329

 5498

 8606

 8815

 8839

 8880

 8915-C

 8915-D

 8915-F

Table I-1. Using This Publication

IF you need information on... THEN see... 

traditional IRAs chapter 1.

Roth IRAs chapter 2, and parts of 

chapter 1.

the credit for qualified retirement savings contributions 

(saver's credit)

chapter 3.

how to keep a record of your contributions to, and 

distributions from, your traditional IRA(s) 

Appendix A.

SEP IRAs, SIMPLE IRAs, and 401(k) plans  Pub. 560.

Coverdell education savings accounts (ESAs) (formerly 

called education IRAs)

 Pub. 970.

IF for 2023, you:

• received social security benefits,

• had taxable compensation,

• contributed to a traditional IRA, and

• you or your spouse were 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.

4 Publication 590-A (2023)
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 ................

No. For tax years after 2019, you are 

able to contribute to your IRA even if 

you have reached age 701/2 or older. 

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 $6,500 in 2023 

($7,500 if I was age 50 or older by the 

end of 2023), is there a limit on how 

much I can contribute to a ...........

Yes. For 2023, you can contribute to a 

traditional IRA up to: 

• $6,500, or

• $7,500 if you were age 50 or older 

by the end of 2023.

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 2023, you may be able to 

contribute to a Roth IRA up to: 

• $6,500, or

• $7,500 if you were age 50 or older 

by the end of 2023,

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 don’t have to file a form if you 

contribute to a Roth IRA. See 

Contributions not reported in chapter 2.

Publication 590-A (2023) 5
1.

Traditional IRAs

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 isn’t 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, aren’t 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.

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 are covered by an employer retirement plan. See 

How Much Can You Deduct, later.

For tax years beginning after December 31, 2019, 

the rule that you are not able to make contributions to your traditional IRA for the year in which 

you reach age 701⁄2 and all later years has been repealed.

Both spouses have compensation. If both you and 

your spouse have compensation, each of you can open an 

IRA. You can’t both participate in the same IRA. If you file 

a joint return, only one of you needs to have compensation.

What Is Compensation?

Generally, compensation is what you earn from working. 

For a summary of what compensation does and doesn’t 

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 

TIP

plans). A scholarship or fellowship is generally taxable 

compensation only if it is in box 1 of your Form W-2. However, for tax years beginning after 2019, certain non-tuition 

fellowship and stipend payments not reported to you on 

Form W-2 are treated as taxable compensation for IRA 

purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your 

gross income under the rules discussed in chapter 1 of 

Pub. 970, Tax Benefits for Education.

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

Self-employment 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 aren’t subject to self-employment tax because 

of your religious beliefs.

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

self-employment, don’t 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 but only with respect 

to divorce or separation instruments executed on or before 

December 31, 2018, that have not been modified to exclude such amounts.

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 2023 Form W-2 with code Q.

Graduate or postdoctoral study. A scholarship or fellowship is generally taxable compensation only if it is in 

box 1 of your Form W-2. However, for tax years beginning 

after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments 

made to aid you in the pursuit of graduate or postdoctoral 

study and included in your gross income under the rules 

discussed in chapter 1 of Pub. 970.

6 Chapter 1 Traditional IRAs Publication 590-A (2023)
Compensation for Purposes

of an IRA

Includes... Doesn’t include...

 earnings and profits from

 property.

wages, salaries, etc.

 interest and

 dividend income.

commissions.

 pension or annuity

 income.

self-employment income.

 deferred compensation.

taxable alimony and separate 

maintenance.

 income from certain 

 partnerships.

nontaxable combat pay.

 any amounts you exclude

 from income.

taxable non-tuition fellowship and 

stipend payments.

What Isn’t Compensation?

Compensation doesn’t 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 don’t 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 company. You can also open an IRA through your stockbroker. 

Any IRA must meet Internal Revenue Code requirements. 

Table 1-1. 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 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 can’t accept contributions of more than the deductible amount for the 

year. However, rollover contributions and employer 

contributions to a 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 can’t be used to buy a life insurance policy.

• Assets in your account can’t 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 72 (or if 

you become age 72 in 2023 or later, April 1, after 

reaching age 73). See Pub. 590-B for more information about required minimum distributions (RMDs) and 

other distribution rules.

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 can’t 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. 

Publication 590-A (2023) Chapter 1 Traditional IRAs 7
This provision applies to contracts issued after November 6, 1978.

• The contract must provide that contributions can’t 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 72 (or if you become age 72 in 2023 or later, April 1, after reaching 

age 73). See Pub. 590-B for more information about 

required minimum distributions (RMDs) and other distribution rules. 

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 can’t 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 Pub. 590-B for more information about the 

age 591/2 rule for early distributions and other distribution 

rules. You can roll over redemption proceeds into IRAs.

SIMPLE IRAs

A SIMPLE IRA plan is a tax-favored retirement plan that 

certain small employers (including self-employed employees) can set up for the benefit of their employees. Your 

participation in your employer's SIMPLE IRA plan doesn’t 

prevent you from making contributions to a traditional or 

Roth IRA. See Pub. 560 for more information about SIMPLE IRAs.

Simplified Employee Pension (SEP)

A 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 

Pub. 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 must generally give you a disclosure 

statement at least 7 days before you open your IRA. However, the sponsor doesn’t 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.

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 their limit separately, using their 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 aren’t 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 under Early Distributions in Pub. 590-B) 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. See Early Distributions in 

8 Chapter 1 Traditional IRAs Publication 590-A (2023)
Pub. 590-B for more information on qualified reservist distributions.

Limit. Your qualified reservist repayments can’t be 

more than your qualified reservist distributions.

When repayment contributions can be made. You 

can’t make these repayment contributions later than the 

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

No deduction. You can’t 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 doesn’t 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 2023, your IRA contribution limit is 

$6,500. 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 $3,000 ($6,500 – 

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

reservist distribution, which you would like to repay this 

year.

For 2023, you can contribute a total of $9,000 to your 

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

and a $3,000 qualified reservist repayment. You contribute 

the maximum allowable for the year. Because you are 

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

8606 with your return and include $6,000 ($3,000 + 

$3,000) on line 1 of Form 8606. The qualified reservist repayment isn’t 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 2023, the most that can be contributed to your traditional IRA is generally the smaller of the following 

amounts.

• $6,500 ($7,500 if you are age 50 or older).

CAUTION

!

• 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 

IRAs or whether all or part of the contributions are nondeductible. (See Nondeductible Contributions, later.) Qualified reservist repayments don’t affect this limit.

Examples. Gina, who is 34 years old and single, earns 

$24,000 in 2023. Her IRA contributions for 2023 are limited to $6,500.

Danny, an unmarried college student working part time, 

earns $3,500 in 2023. His IRA contributions for 2023 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 $6,500 ($7,500 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 2023, 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. $6,500 ($7,500 if you are age 50 or older).

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 $13,000 ($14,000 if only one of 

you is age 50 or older, or $15,000 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).

Publication 590-A (2023) Chapter 1 Traditional IRAs 9
Example. You are a full-time student with no taxable 

compensation and marry during the year. Neither you nor 

your spouse is at least age 50 by the end of 2023. Your 

spouse has taxable compensation of $30,000. Your 

spouse plans to contribute (and deduct) $6,500 to a traditional IRA. If you and your spouse file a joint return, you 

and your spouse can each contribute $6,500 to a traditional IRA. Because you have no compensation, you can 

add your spouse’s compensation, reduced by the amount 

of your spouse’s IRA contribution ($30,000 - $6,500 = 

$23,500), to your compensation (-0-) to figure your maximum contribution to a traditional IRA. In your case, $6,500 

is your contribution limit, because $6,500 is less than 

$23,500 (your compensation for purposes of figuring your 

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. You and your spouse are both age 53. You 

both work and you both have a traditional IRA. You earned 

$3,800 and your spouse earned $48,000 in 2023. Because of the Kay Bailey Hutchison Spousal IRA limit rule, 

even though you earned less than $7,500, you can contribute up to $7,500 to your IRA for 2023 if you file a joint 

return. Your spouse can contribute up to $7,500 to their 

IRA. If you file separate returns, the amount that can be 

contributed to your IRA is limited by your earned income, 

$3,800.

Less Than Maximum Contributions

If contributions to your traditional IRA for a year were less 

than the limit, you can’t contribute more after the due date 

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

Example. You are age 40 and earn $30,000 in 2023. 

Although you can contribute up to $6,500 for 2023, you 

contribute only $3,000. After April 15, 2024, you can’t 

make up the difference between your actual contributions 

for 2023 ($3,000) and your 2023 limit ($6,500). You can’t 

contribute $3,500 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 can’t be 

contributed.

Although property can’t 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.

Contributions can be made to your traditional IRA for 

each year that you receive compensation. For any year in 

which you don’t work, contributions can’t be made to your 

IRA unless you receive taxable 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 can’t 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 2023 must be made by 

April 15, 2024.

For tax years beginning after 2019, the rule that 

you are not able to make contributions to your traditional IRA for the year in which you reach age 

701⁄2 and all later years has been repealed.

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 don’t 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 

TIP TIP

10 Chapter 1 Traditional IRAs Publication 590-A (2023)
must be made by the due date of your return, not including 

extensions.

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

can.

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 were 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 3.

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

IRA aren’t deductible as IRA contributions. You are also 

not able to deduct these fees as an itemized deduction.

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:

• $6,500 ($7,500 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. $6,500 ($7,500 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.

TIP

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

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 

didn’t remarry) before the end of the year, you can’t 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 were 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 don’t 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 Aren’t Covered, later.

If you aren’t 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 Aren’t 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 

Publication 590-A (2023) Chapter 1 Traditional IRAs 11
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. 

An employee leaves Company A on December 31, 2022. 

The contribution for the plan year ending on June 30, 

2023, is made February 15, 2024. Because an amount is 

contributed to the employee’s account for the plan year, 

this employee is covered by the plan for their 2023 tax 

year.

A special rule applies to certain plans in which it isn’t 

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 aren’t 

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. You were covered by a profit-sharing plan 

and left the company on December 31, 2022. The plan 

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

plan, employer contributions don’t 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, 

2023, no contributions were made that were allocated to 

the June 30, 2023, plan year, and no forfeitures had been 

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

the company wasn’t 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, 2023, the company decided to 

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

2023. That contribution was made on February 15, 2024. 

You are an active participant in the plan for your 2024 tax 

year but not for your 2023 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,

• Didn’t make a required contribution, or

• Didn’t perform the minimum service required to accrue 

a benefit for the year.

A defined benefit plan is any plan that isn’t a defined 

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

benefits to be provided to each participant is spelled out in 

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. You are an employee of Company B and are 

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

which has a July 1 to June 30 plan year. You leave Company B on December 31, 2022. Because you are eligible 

to participate in the plan for its year ending June 30, 2023, 

you are covered by the plan for your 2023 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 Aren’t Covered

Unless you are covered by another employer plan, you 

aren’t 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 isn’t coverage under 

an employer retirement plan.

Benefits from previous employer's plan. If you receive 

retirement benefits from a previous employer's plan, you 

aren’t 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 aren’t 

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 didn’t 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 aren’t 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 won’t provide more than $1,800 per year at 

retirement.

12 Chapter 1 Traditional IRAs Publication 590-A (2023)
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 

were 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 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, 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 were 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.

Deduction Phaseout

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

spouse were covered by an employer retirement plan.

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

employer retirement plan and you didn’t receive any 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.

If your spouse is covered. If you aren’t covered by an 

employer retirement plan, but your spouse is, and you 

didn’t receive any social security benefits, your IRA 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 surviving spouse, or married filing separately. If you need more information on filing status, see 

Pub. 501, Dependents, Standard Deduction, and Filing Information.

Lived apart from spouse. If you didn’t 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 

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 AGI is... THEN you can take... 

single or

head of household

$73,000 or less a full deduction.

more than $73,000

but less than $83,000 a partial deduction.

$83,000 or more no deduction.

married filing jointly or 

qualifying surviving spouse

$116,000 or less a full deduction.

more than $116,000

but less than $136,000 a partial deduction.

$136,000 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 didn’t 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.

Publication 590-A (2023) Chapter 1 Traditional IRAs 13
contributions to your IRA for 2023 and received a distribution from your IRA in 2023, see Both contributions for 

2023 and distributions in 2023, later.

Don’t 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 or 1040-SR. If you file Form 1040 or 

1040-SR, refigure the amount on line 11, the “adjusted 

gross income” line, without taking into account any of the 

following amounts.

• IRA deduction.

• Student loan interest 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 1040-NR. If you file Form 1040-NR, refigure the 

amount on line 11, the “adjusted gross income” line, without taking into account any of the following amounts.

• IRA deduction.

• Student loan interest deduction.

CAUTION

!

• 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 2023 from one or more traditional IRAs and your 

traditional IRAs include only deductible contributions, your 

distributions are fully taxable and are included in your 

modified AGI. See Pub. 590-B for more information on distributions.

Both contributions for 2023 and distributions in 

2023. If all three of the following apply, any IRA distributions you received in 2023 may be partly tax free and 

partly taxable.

• You received distributions in 2023 from one or more 

traditional IRAs.

• You made contributions to a traditional IRA for 2023.

• 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 1-1 in 

Pub. 590-B.

If at least one of the above doesn’t apply, figure your 

modified AGI using Worksheet 1-1.

Effect of Modified AGI1 on Deduction if You Aren’t Covered by a Retirement Plan at 

Work

If you aren’t 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 AGI is... THEN you can take...

single,

head of household, or

qualifying surviving spouse

any amount a full deduction.

married filing jointly or separately with a 

spouse who isn’t 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

$218,000 or less a full deduction.

more than $218,000

but less than $228,000 a partial deduction.

$228,000 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), earlier.

2

 You are entitled to the full deduction if you didn’t live with your spouse at any time during the year.

Table 1-3.

14 Chapter 1 Traditional IRAs Publication 590-A (2023)
How To Figure Your Reduced IRA Deduction

If you or your spouse are covered by an employer retirement plan and you didn’t receive any social security benefits, you can figure your reduced IRA deduction by using 

Worksheet 1-2. The Instructions for Form 1040 include a 

similar worksheet that you can use instead of the worksheet in this publication.

If you or your spouse are 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 an IRA, figure your deduction and 

your spouse's deduction separately.

Reporting Deductible Contributions

If you file Schedule 1 (Form 1040), enter your IRA deduction on line 20 of that form.

Self-employed. If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Schedule 1 (Form 

1040), line 16.

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. You are 29 years old and single. In 2023, 

you were covered by a retirement plan at work. Your salary 

is $72,000. Your modified AGI is $90,000. You make a 

$6,500 IRA contribution for 2023. Because you were covered by a retirement plan and your modified AGI is above 

$83,000, you can’t deduct your $6,500 IRA contribution. 

You 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.

Difficulty of care payments. For contributions after December 20, 2019, you are able to elect to increase the 

nondeductible IRA contribution limit by some or all of the 

amount of difficulty of care payments, which are a type of 

qualified foster care payment, received. If you receive difficulty of care payments, then those amounts may increase 

the amount of nondeductible IRA contributions you can 

make but not above the $6,500 IRA deductible amount 

($7,500 if you are age 50 or older). The increase to the 

nondeductible IRA contribution limit equals the lesser of (i) 

the amount of difficulty of care payments excluded from 

gross income, or (ii) the amount by which the deductible 

limit for IRA contributions exceeds the amount of the taxpayer's compensation included in gross income for the tax 

year.

Form 8606. To designate contributions as nondeductible, 

you must file Form 8606.

You don’t 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 don’t have to file a tax return for the 

year.

A Form 8606 isn’t 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 in 

Pub. 590-B.

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, 1040-SR, or Form 1040-NR, 

line 11, figured without taking into account the amount from Schedule 1 (Form 1040), 

line 20 ...................................................................... 1.

2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 .......... 2.

3. Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, 

line 45 ...................................................................... 3.

4. Enter any foreign housing deduction from Form 2555, line 50 ......................... 4.

5. Enter any excludable savings bond interest from Form 8815, line 14 ................... 5.

6. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 ....... 6.

7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes ............ 7.

Publication 590-A (2023) Chapter 1 Traditional IRAs 15
Failure to report nondeductible contributions. If you 

don’t 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 don’t 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, 

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 Pub. 590-B for more information on distributions.

Recordkeeping. There is a recordkeeping worksheet, Appendix A. Summary Record of Traditional IRA(s) for 2023, that you can use to keep a 

record of deductible and nondeductible IRA contributions.

Examples—Worksheet for Reduced 

IRA Deduction for 2023

The following examples illustrate the use of Worksheet 

1-2.

Example 1. For 2023, you and your spouse file a joint 

return on Form 1040. You are both 39 years old. You are 

both employed. You are covered by your employer’s retirement plan. However, your spouse isn’t covered by their 

employer’s retirement plan. Your salary is $66,000, and 

your spouse’s salary is $41,500. You each have a traditional IRA and your combined modified AGI, which includes $9,000 interest and dividend income, is $116,500. 

CAUTION

!

RECORDS

Because your modified AGI is between $116,000 and 

$136,000 and you are covered by an employer plan, you 

are subject to the deduction phaseout discussed earlier 

under Limit if Covered by Employer Plan.

For 2023, you and your spouse, each, contributed 

$6,500 to your respective IRAs. Even though you file a 

joint return, you must figure their IRA deductions 

separately.

You can take a deduction of only $6,440. Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2023, 

you figure your deductible and nondeductible amounts as 

shown on Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2023—Example 1 Illustrated.

You can choose to treat the $6,440 as either deductible 

or nondeductible contributions. You can either leave the 

$60 ($6,500 − $6,440) of nondeductible contributions in 

your IRA or withdraw them by April 15, 2024. You decide 

to treat the $6,440 as a deductible contribution and leave 

the $60 of nondeductible contributions in your IRA.

Your spouse can treat all or part of their $6,500 contribution as either deductible or nondeductible. This is because they aren’t covered by their employer's retirement 

plan, and your combined modified AGI isn’t between 

$218,000 and $228,000. Therefore, they aren’t subject to 

the deduction phaseout discussed earlier under Limit if 

Covered by Employer Plan, and they don’t need to use 

Worksheet 1-2. Your spouse decides to treat their $6,500 

IRA contribution as deductible.

The IRA deductions of $6,440 and $6,500 on the joint 

return for you and your spouse total $12,940.

Example 2. For 2023, you and your spouse file a joint 

return on Form 1040. You are both 39 years old. Your salary is $45,000 and you are covered by your employer's retirement plan. Your spouse had no compensation for the 

year and was not covered by an employer plan. You contribute $6,500 to your traditional IRA and $6,500 to your 

spouse's traditional IRA (a Kay Bailey Hutchison Spousal 

IRA). Your combined modified AGI which includes $2,000 

interest and dividend income and a large capital gain from 

the sale of stock is $220,500.

Because your combined modified AGI is $136,000 or 

more and you are covered by your employer's plan, you 

can’t deduct any of the contribution to your traditional IRA. 

You can either leave the $6,500 of nondeductible contributions in your IRA or withdraw them by April 15, 2024.

Your spouse figures their IRA deduction as shown on 

Worksheet 1-2. Figuring Your Reduced IRA Deduction for 

2023—Example 2 Illustrated.

16 Chapter 1 Traditional IRAs Publication 590-A (2023)
Figuring Your Reduced IRA 

Deduction for 2023

Worksheet 1-2. 

Keep for Your Records

(Use only if you or your spouse are 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 $73,000 $83,000

married filing jointly or 

qualifying surviving 

spouse $116,000 $136,000

married filing separately $0 $10,000

aren’t covered by an 

employer plan, but your 

spouse is covered

married filing jointly $218,000 $228,000

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 aren’t 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 surviving spouse and you are covered by an employer plan), stop 

here. You can take a full IRA deduction for contributions of up to $6,500 ($7,500 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 isn’t 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 surviving spouse and you are covered by an 

employer plan, multiply line 3 by 33% (0.33) (by 38% (0.38) if you are age 50 or 

older).

• All others, multiply line 3 by 65% (0.65) (by 75% (0.75) if you are age 50 or older).

...... 4.

5. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible 

part of self-employment tax), and Schedule 1 (Form 1040), line 16 (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, 1040-SR, or 1040-NR, don’t reduce your 

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

6. Enter contributions made, or to be made, to your IRA for 2023, but don’t enter more than $6,500 

($7,500 if you are age 50 or older). If contributions are more than $6,500 ($7,500 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 your Schedule 1 (Form 1040), line 20. 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.

Publication 590-A (2023) Chapter 1 Traditional IRAs 17
Worksheet 1-2.Figuring Your Reduced IRA Deduction for 2023—Example 1 Illustrated

(Use only if you or your spouse are 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 $73,000 $83,000

married filing jointly or 

qualifying surviving 

spouse $116,000 $136,000

married filing separately $0 $10,000

aren’t covered by an 

employer plan, but your 

spouse is covered

married filing jointly $218,000 $228,000

married filing separately $0 $10,000

1. Enter applicable amount from table above .............................................. 1. 136,000

2. Enter your modified AGI (that of both spouses, if married filing jointly) ...................... 2. 116,500

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 surviving spouse and you are covered by an employer plan), stop 

here. You can take a full IRA deduction for contributions of up to $6,500 ($7,500 if you are age 50 

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

less ............................................................................. 3. 19,500

4. Multiply line 3 by the percentage below that applies to you. If the result isn’t 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 surviving spouse and you are covered by an 

employer plan, multiply line 3 by 33% (0.33) (by 38% (0.38) if you are age 50 or 

older).

• All others, multiply line 3 by 65% (0.65) (by 75% (0.75) if you are age 50 or older).

...... 4. 6,440

5. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible 

part of self-employment tax), and Schedule 1 (Form 1040), line 16 (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, 1040-SR, or 1040-NR, don’t reduce your 

compensation by any losses from self-employment ...................................... 5. 66,000

6. Enter contributions made, or to be made, to your IRA for 2023, but don’t enter more than $6,500 

($7,500 if you are age 50 or older). If contributions are more than $6,500 ($7,500 if you are age 50 

or older), see Excess Contributions, later .............................................. 6. 6,500

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

choose) here and on your Schedule 1 (Form 1040), line 20. If line 6 is more than line 7 and you 

want to make a nondeductible contribution, go to line 8 ................................... 7. 6,440

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. 60

18 Chapter 1 Traditional IRAs Publication 590-A (2023)
Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2023—Example 2 Illustrated

(Use only if you or your spouse are 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 $73,000 $83,000

married filing jointly or 

qualifying surviving 

spouse $116,000 $136,000

married filing separately $0 $10,000

aren’t covered by an 

employer plan, but your 

spouse is covered

married filing jointly $218,000 $228,000

married filing separately $0 $10,000

1. Enter applicable amount from table above .............................................. 1. 228,000

2. Enter your modified AGI (that of both spouses, if married filing jointly) ...................... 2. 220,500

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

Your IRA contributions aren’t 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 surviving spouse and you are covered by an employer plan), stop 

here. You can take a full IRA deduction for contributions of up to $6,500 ($7,500 if you are age 50 

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

less ............................................................................. 3. 7,500

4. Multiply line 3 by the percentage below that applies to you. If the result isn’t 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 surviving spouse and you are covered by an 

employer plan, multiply line 3 by 33% (0.33) (by 38% (0.38) if you are age 50 or 

older).

• All others, multiply line 3 by 65% (0.65) (by 75% (0.75) if you are age 50 or older).

...... 4. 4,880

5. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible 

part of self-employment tax), and Schedule 1 (Form 1040), line 16 (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, 1040-SR, or 1040-NR, don’t reduce your 

compensation by any losses from self-employment ...................................... 5. 39,000

6. Enter contributions made, or to be made, to your IRA for 2023, but don’t enter more than $6,500 

($7,500 if you are age 50 or older). If contributions are more than $6,500 ($7,500 if you are age 50 

or older), see Excess Contributions, later .............................................. 6. 6,500

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

choose) here and on your Schedule 1 (Form 1040), line 20, whichever applies. If line 6 is more 

than line 7 and you want to make a nondeductible contribution, go to line 8 .................. 7. 4,880

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. 1,620

Publication 590-A (2023) Chapter 1 Traditional IRAs 19
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 the owner 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.

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), 

or

d. Deferred compensation plan of a state or local 

government (section 457 plan).

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 don’t take the required minimum distribution for a 

year as a beneficiary of the IRA.

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 isn’t a required distribution, even if you 

aren’t the sole beneficiary of your deceased spouse's IRA. 

For more information, see When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B for 

more information on required minimum distributions.

Inherited From Someone Other Than 

Spouse

If you inherit a traditional IRA from anyone other than your 

deceased spouse, you can’t treat the inherited IRA as 

your own. This means that you can’t make any contributions to the IRA. It also means you can’t 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. See Pub. 590-B for more information.

Like the original owner, you generally won’t 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.

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) in Pub. 590-B; and

• IRA Beneficiaries under When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B.

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.

20 Chapter 1 Traditional IRAs Publication 590-A (2023)
Trustee-to-Trustee 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, isn’t a rollover. This includes the situation where 

the current trustee issues a check to the new trustee but 

gives it to you to deposit. Because there is no distribution 

to you, the transfer is tax free. Because it isn’t a rollover, it 

isn’t 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 within 60 days you received 

the payment or distribution. The contribution to the second 

retirement plan is called a rollover contribution.

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).

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

Also, see Table 1-4.

Treatment of rollovers. You can’t 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 Plan (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 aren’t 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 couldn’t be rolled over. However, a special rule treats a distribution you roll over into an eligible 

retirement plan as including only otherwise taxable 

amounts if the amount you either leave in your IRAs or 

don’t 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.

• 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 must generally 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, 2023, 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, 2023, 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 Ways to get a waiver of the 

60-day rollover requirement, later.

Plan loan offset. A plan loan offset is the amount your 

employer plan account balance is reduced, or offset, to repay a loan from the plan. How long you have to complete 

the rollover of a plan loan offset depends on what kind of 

plan loan offset you have. For tax years beginning after 

December 31, 2017, if you have a qualified plan loan offset, you will have until the due date (including extensions) 

for your tax return for the tax year in which the offset occurs to complete your rollover. A qualified plan loan offset 

occurs when a plan loan in good standing is offset because your employer plan terminates, or because you 

sever from employment. If your plan loan offset occurs for 

any other reason, then you have 60 days from the date the 

offset occurs to complete your rollover.

Rollovers completed after the 60-day period. In the 

absence of a waiver, amounts not rolled over within the 

Publication 590-A (2023) Chapter 1 Traditional IRAs 21
60-day period don’t 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 under Early 

Distributions in Pub. 590-B.

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 

2023 from a traditional IRA that you don’t roll over into another traditional IRA within the 60-day limit. You don’t qualify for a waiver. This distribution is taxable in 2023 even 

though the 60-day limit wasn’t up until 2024.

Ways to get a waiver of the 60-day rollover requirement. There are three ways to obtain a waiver of the 

60-day rollover requirement.

• You qualify for an automatic waiver.

• You self-certify that you met the requirements of a 

waiver.

• You request and receive a private letter ruling granting 

a waiver.

How do you qualify for an automatic waiver? You 

qualify for an automatic waiver 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 of the procedures set by the financial 

institution for depositing the funds into an IRA or other 

eligible retirement plan within the 60-day rollover 

Table 1-4. 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 Governmental 

457(b) 

Plan

Qualified 

Plan1

 (pre-tax)

403(b) Plan

(pre-tax)

Designated 

Roth 

Account 

(401(k), 

403(b), or 

457(b))

Roth IRA Yes2 No No No No No No No

Traditional 

IRA

Yes3 Yes2 Yes,2 7 after 

2 years

Yes2 Yes4 Yes Yes No

SIMPLE 

IRA

Yes,3 after 2 

years

Yes,2 after 2 

years

Yes2 Yes,2 after 2 

years

Yes,4 after 2 

years

Yes, after 2 

years

Yes, after 2 

years

No

SEP IRA Yes3 Yes2 Yes,2 7 after 

2 years

Yes2 Yes4 Yes Yes No

Governmental 

457(b) Plan

Yes3 Yes Yes,7 after 2 

years

Yes Yes Yes Yes Yes,3 5

Roll 

From

Qualified 

Plan1

 (pre-tax)

Yes3 Yes Yes,7 after 2 

years

Yes Yes4 Yes Yes Yes,3 5

403(b) Plan

(pre-tax)

Yes3 Yes Yes,7 after 2 

years

Yes Yes4 Yes Yes Yes,3 5

Designated

 Roth 

Account 

(401(k), 

403(b), or 

457(b))

Yes No No No No No No Yes6

1

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

2

 Only one rollover in any 12-month period.

3

 Must include in income.

4

 Must have separate accounts.

5

 Must be an in-plan rollover.

6

 Any nontaxable amounts distributed must be rolled over by direct trustee-to-trustee transfer.

7

 Applies to rollover contributions after December 18, 2015. For more information regarding retirement plans and rollovers, go to Tax 

Information for Retirement Plans.

22 Chapter 1 Traditional IRAs Publication 590-A (2023)
period (including giving instructions to deposit the 

funds into a plan or IRA).

• The funds aren’t deposited into a plan or IRA within 

the 60-day rollover period solely because of an error 

on the part of the financial institution.

• The funds are deposited into a plan or IRA 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.

If you don’t qualify for an automatic waiver, you can use 

the self-certification procedure to make a late rollover contribution or you can apply to the IRS for a waiver of the 

60-day rollover requirement.

How do you self-certify that you qualify for a waiver? 

Pursuant to Revenue Procedure 2020-46 in Internal Revenue Bulletin 2020-45, available at IRB 2020-45, you may 

make a written certification to a plan administrator or an 

IRA trustee that you missed the 60-day rollover contribution deadline because of one or more of the reasons listed 

in Revenue Procedure 2020-46. A plan administrator or an 

IRA trustee may rely on the certification in accepting and 

reporting receipt of the rollover contribution. You may 

make the certification by using the model letter in the appendix to the revenue procedure or by using a letter that is 

substantially similar. There is no IRS fee for self-certification. A copy of the certification should be kept in your files 

and be available if requested on audit.

Note. A self-certification is not a waiver by the IRS of 

the 60-day rollover requirement. If the IRS subsequently 

audits your income tax return, it may determine that you 

do not qualify for a waiver, in which case you may owe additional taxes and penalties.

How do you apply for a waiver and what is the fee? 

You can request a ruling according to the procedures outlined in Revenue Procedure 2003-16 and Revenue Procedure 2024-4. The appropriate user fee of $12,500 must 

accompany every request for a waiver of the 60-day rollover requirement (see the user fee chart in Appendix A of 

Revenue Procedure 2024-4).

How does the IRS determine whether to grant a 

waiver in a private letter ruling? In determining 

whether to issue a favorable letter ruling granting a waiver, 

the IRS will consider all of the relevant facts and circumstances, including:

• Whether errors were made by the financial institution, 

that is, the plan administrator, or IRA trustee, issuer, or 

custodian;

• Whether you were unable to complete the rollover 

within the 60-day period due to death, disability, hospitalization, incarceration, serious illness, restrictions imposed by a foreign country, or postal error;

• Whether you used the amount distributed; and

• How much time has passed since the date of the distribution.

Note. The IRS can waive only the 60-day rollover requirement and not the other requirements for a valid rollover contribution. For example, the IRS can’t waive the 

IRA one-rollover-per-year rule.

For more information on waivers of the 60-day rollover 

requirement, go to RetirementPlans-FAQs.

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 isn’t counted in the 60-day period.

• The 60-day period can’t end earlier than 10 days after 

the deposit is no longer frozen.

Frozen deposit. This is any deposit that can’t 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 can’t 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 can’t, within a 1-year period, make a 

tax-free rollover of any later distribution from that same 

IRA. You also can’t 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. 

Rules apply to the number of rollovers you can have with 

your traditional IRAs. See Application of one-rollover-per-year limitation, later.

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

IRA-2. In 2023, you made a tax-free rollover of a 

TIP

Publication 590-A (2023) Chapter 1 Traditional IRAs 23
distribution from IRA-1 into a new traditional IRA (IRA-3). 

You can’t, 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.

For 2023, the rollover from IRA-1 into IRA-3 prevents 

you from making a tax-free rollover from IRA-2 into any 

other traditional IRA. This is because in 2023 you are only 

allowed to make one rollover within a 1-year period. So 

when you make a rollover from IRA-1 to IRA-3, you can’t 

make a rollover from IRA-2 to any other traditional IRA.

Exception. An IRA distribution made from a failed financial institution by the Federal Deposit Insurance Corporation as receiver is not treated as a rollover for purposes of the one-rollover-per-year limitation, provided:

1. Neither the failed financial institution nor the depositor 

initiated the distribution, and

2. No financial institution has assumed the IRAs of the 

failed financial institution.

Application of one-rollover-per-year limitation. You 

can make only one rollover from an IRA to another (or the 

same) IRA in any 1-year period regardless of the number 

of IRAs you own. The limit will apply by aggregating all of 

an individual's IRAs, including SEP and SIMPLE IRAs as 

well as traditional and Roth IRAs, effectively treating them 

as one IRA for purposes of the limit. However, 

trustee-to-trustee transfers between IRAs aren’t limited 

and rollovers from traditional IRAs to Roth IRAs (conversions) aren’t limited.

Example. You have three traditional IRAs: IRA-1, 

IRA-2, and IRA-3. You didn’t take any distributions from 

your IRAs in 2023. On January 1, 2024, you took a distribution from IRA-1 and rolled it over into IRA-2 on the same 

day. For 2024, you can’t roll over any other 2024 IRA distribution, including a rollover distribution involving IRA-3. 

This wouldn’t apply to a conversion.

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 in Pub. 590-B) aren’t eligible for rollover treatment.

Inherited IRAs. If you inherit a traditional IRA from your 

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

make the inherited IRA your own as discussed earlier under What if You Inherit an IRA.

Reporting rollovers from IRAs. Report any rollover 

from one traditional IRA to the same or another traditional 

IRA on Form 1040, 1040-SR, or 1040-NR, lines 4a and 

4b.

Enter the total amount of the distribution on Form 1040, 

1040-SR, or 1040-NR, line 4a. If the total amount on Form 

1040, 1040-SR, or 1040-NR, line 4a, was rolled over, enter zero on Form 1040, 1040-SR, or 1040-NR, line 4b. If 

the total distribution wasn't rolled over, enter the taxable 

portion of the part that wasn't rolled over on Form 1040, 

1040-SR, or 1040-NR, line 4b. Enter "Rollover" next to 

line 4b. See your tax return instructions.

If you rolled over the distribution into a qualified plan 

(other than an IRA) or you make the rollover in 2024, attach a statement explaining what you did.

For information on how to figure the taxable portion, 

see Are Distributions Taxable? in Pub. 590-B.

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 under 

When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B).

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 doesn’t satisfy certain requirements either when made or later 

24 Chapter 1 Traditional IRAs Publication 590-A (2023)
(such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. 

See the discussion earlier of plan loan offsets (including qualified plan loan offsets) under Time Limit for 

Making a Rollover Contribution.

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 wouldn’t 

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 isn’t 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 in Pub. 590-B.

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 Pub. 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 isn’t 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.

TIP

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 withholding by choosing the direct rollover option, discussed 

later.

Exceptions. The payer doesn’t have to withhold from 

an eligible rollover distribution paid to you if either of the 

following conditions applies.

• 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 don’t roll over. However, you can make up 

the amount withheld with funds from other sources.

Other withholding rules. The 20% withholding requirement doesn’t apply to distributions that aren’t 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 Pub. 505.

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 isn’t 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 may help you decide 

which distribution option to choose. Carefully compare the 

effects of each option.

CAUTION

!

Publication 590-A (2023) Chapter 1 Traditional IRAs 25
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 isn’t rolled over. 

There is no 10% 

additional tax. See 

Early Distributions in 

Pub. 590-B.

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 isn’t 

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 won’t have 20% 

withholding or be subject to the 10% additional tax under 

that option.

If you have a lump-sum distribution and don’t 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 Pub. 575 and 

Form 4972, Tax on Lump-Sum 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 lump-sum distribution with 

any advantages from rolling over all or part of the distribution. However, if you roll over any part of the lump-sum distribution, you can’t 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 aren’t the same as an 

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

aren’t 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 doesn’t 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

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 won’t 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 can’t 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 can’t 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 can’t 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 aren’t included in your gross income.

Example. On September 6 you received a lump-sum 

distribution from your employer's retirement plan of 

$50,000 in cash and $50,000 in stock. The stock wasn’t 

stock of your employer. On September 24, you sold the 

stock for $60,000. On October 6, you rolled over $110,000 

in cash ($50,000 from the original distribution and $60,000 

from the sale of stock). You don’t include the $10,000 gain 

from the sale of stock as part of your income because you 

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 Pub. 575.

Partial rollover. If you received both cash and property, 

or just property, but didn’t roll over the entire distribution, 

see Rollovers in Pub. 575.

26 Chapter 1 Traditional IRAs Publication 590-A (2023)
Life insurance contract. You can’t 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 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 can’t alter the amount or form of the benefits of the 

plan.

Tax treatment if all of an eligible distribution isn’t 

rolled over. Any part of an eligible rollover distribution 

that you keep is taxable in the year you receive it. If you 

don’t roll over any of it, special rules for lump-sum distributions may apply. See Lump-Sum Distributions under Taxation of Nonperiodic Payments in Pub. 575. The 10% additional tax on early distributions, discussed later under 

What Acts Result in Penalties or Additional Taxes, doesn’t 

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 Lump-Sum Distributions under Taxation of Nonperiodic Payments in Pub. 575.

More information. For more information about Keogh 

plans, see chapter 4 of Pub. 560.

Distribution from a tax-sheltered 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.

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, 1040-SR, or 1040-NR, 

line 5a. 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, 1040-SR, or 1040-NR, line 5b. Also, 

enter "Rollover" next to line 5b of Form 1040, 1040-SR, or 

1040-NR.

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 their 

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 their 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.

CAUTION

!

Publication 590-A (2023) Chapter 1 Traditional IRAs 27
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 won’t apply. 

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 in Pub. 590-B 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 won’t apply even if the 

distributions aren’t qualified distributions (as long as they 

are part of a series of substantially equal periodic payments).

Required distributions. You can’t convert amounts that 

must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach 

age 73) under the required distribution rules (discussed in 

Pub. 590-B).

Income. You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you hadn’t 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 don’t 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 in Pub. 590-B.

If you must include any amount in your gross income, you may have to increase your withholding 

or make estimated tax payments. See Pub. 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 must generally 

have the contribution transferred from the first IRA (the 

one to which it was made) to the second IRA in a 

CAUTION

!

trustee-to-trustee transfer. If the transfer is made by the 

due date (including extensions) for your tax return for the 

tax year for 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 

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 recharacterizations of conversions made in 2018 

or later. A conversion of a traditional IRA to a Roth IRA, 

and a rollover from any other eligible retirement plan to a 

Roth IRA, made in tax years beginning after December 

31, 2017, cannot be recharacterized as having been made 

to a traditional IRA. If you made a conversion in the 2017 

tax year, you had until the due date (including extensions) 

for filing the return for that tax year to recharacterize it.

No deduction allowed. You can’t 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 won’t 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. 

You receive a distribution from a traditional IRA in 1 tax 

year. You then roll it over into a Roth IRA within 60 days of 

the distribution from the traditional IRA but in the next 

year. For recharacterization purposes, you would treat this 

transaction as a contribution to the Roth IRA in the year of 

the distribution from the traditional IRA.

Effect of previous tax-free transfers. If an amount has 

been moved from one IRA to another in a tax-free transfer, 

such as a rollover, you generally can’t recharacterize the 

amount that was transferred. However, see Traditional IRA 

mistakenly moved to SIMPLE IRA next.

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 2023. You can’t recharacterize the excess contributions you made in 2023 after April 15, 2024, because contributions after that date are no longer timely for 2023.

28 Chapter 1 Traditional IRAs Publication 590-A (2023)
Recharacterizing employer contributions. You can’t 

recharacterize employer contributions (including elective 

deferrals) under a SEP or SIMPLE plan as contributions to 

another IRA. SEPs are discussed in chapter 2 of Pub. 

560. SIMPLE plans are discussed in chapter 3 of Pub. 

560.

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.

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 2023 that are recharacterized, use Worksheet 

1-3. See Regulations section 1.408A-5 for more information.

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 including 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, 2024, this period ends on October 15, 2024. 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.

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 2024 to be recharacterized ................ 1.

2. Enter the fair market value of the IRA immediately prior to the recharacterization (include any 

distributions, transfers, or recharacterizations 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.

Publication 590-A (2023) Chapter 1 Traditional IRAs 29
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 can’t be changed. After the transfer has taken 

place, you can’t 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.

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 reach age 

591/2. This is explained under Age 591/2 Rule under Early 

Distributions in Pub. 590-B.

You can generally 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 later.

Contributions Returned Before Due 

Date of Return

If you made IRA contributions in 2023, 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 didn’t 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 2023 tax return without 

withdrawing a contribution that you made in 2023, you can 

still have the contribution returned to you within 6 months 

of the due date of your 2023 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 2023 that are returned to you, use Worksheet 

1-4. See Regulations section 1.408-11 for more information.

Example. On May 2, 2024, when your IRA is worth 

$4,800, you make a $1,600 regular contribution to your 

IRA. You request that $400 of the May 2, 2024, contribution be returned to you. On February 2, 2025, when the 

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 2024 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.

30 Chapter 1 Traditional IRAs Publication 590-A (2023)
IRA is worth $7,600, the IRA trustee distributes to you the 

$400 plus net income attributable to the contribution. No 

other contributions have been made to the IRA for 2024 

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, 2024, contribution is $75 

($400 x ($7,600 – $6,400) ÷ $6,400). Therefore, the total 

to be distributed on February 2, 2025, is $475. This is 

shown on Worksheet 1-4. Example—Illustrated.

Last-in first-out 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 doesn’t apply to these tax-free 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? in Pub. 590-B.

CAUTION

!

Excess Contributions Tax

If any part of these contributions is an excess contribution 

for 2022, it is subject to a 6% excise tax. You won’t have to 

pay the 6% tax if any 2022 excess contribution was withdrawn by April 18, 2023 (including extensions), and if any 

2023 excess contribution is withdrawn by April 15, 2024 

(including 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. 

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 don’t 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. See Pub. 590-B.

• Allowing excess amounts to accumulate (failing to 

take required distributions). See Pub. 590-B.

• Having unrelated business income.

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 don’t avoid those acts.

TIP

Worksheet 1-4. Example—Illustrated Keep for Your Records

1. Enter the amount of your IRA contribution for 2024 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. 0.1875

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

Publication 590-A (2023) Chapter 1 Traditional IRAs 31
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.

If your IRA is invested in nonpublicly traded assets or assets that you directly control, the risk of 

engaging in a prohibited transaction in connection 

with your account may be increased.

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.

However, if you own more than one IRA, each IRA is 

treated as a separate account, and loss of IRA status only 

affects that IRA that participated in the prohibited transaction.

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? in Pub. 590-B. 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 in Pub. 590-B.

CAUTION

!

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 in Pub. 590-B.

Trust account set up by an employer or an employee 

association. Your account or annuity doesn’t lose its 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 isn’t 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 isn’t 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 Department of Labor has authority to grant administrative exemptions from the prohibited transaction provisions of ERISA and the Code for a class of transactions or 

for individual transactions. In order to grant an administrative exemption, the Department must make the following 

three determinations.

1. The exemption must be administratively feasible.

2. In the interest of the plan and its participants.

3. Protective of the rights of plan participants and beneficiaries.

For additional information on prohibited transaction exemptions, see the Department of Labor publication, 

Exemption Procedures under Federal Pension Law.

The following two types of transactions aren’t 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.

32 Chapter 1 Traditional IRAs Publication 590-A (2023)
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 isn’t 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) don’t 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 don’t 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 isn’t 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 

isn’t eligible for (or doesn’t 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 in Pub. 590-B.

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, aren’t 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.

Unrelated Business Income

An IRA is subject to tax on unrelated business income if it 

carries on an unrelated trade or business. An unrelated 

trade or business means any trade or business regularly 

carried on by the IRA or by a partnership of which it is a 

member. If the IRA has $1,000 or more of unrelated trade 

or business gross income, the IRA trustee is required to 

file a Form 990-T, Exempt Organization Business Income 

Tax Return. The Form 990-T must be filed by the 15th day 

of the 4th month after the end of the IRA’s tax year. See 

Pub. 598, Tax on Unrelated Business Income of Exempt 

Organizations, for more information.

Excess Contributions

Generally, an excess contribution is the amount contributed to your traditional IRAs for the year that is more than 

the smaller of:

• $6,500 ($7,500 if you are age 50 or older), or

• Your taxable compensation for the year.

The taxable compensation limit applies whether your 

contributions are deductible or nondeductible.

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 Pub. 560.

Tax on Excess Contributions

In general, if the excess contributions for a year aren’t 

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 

can’t 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 2023, you are 45 years old and single. 

Your compensation is $31,000 and you contributed $7,000 

to your traditional IRA. You have made an excess contribution to your IRA of $500 ($7,000 minus the $6,500 limit). 

The contribution earned $5 interest in 2023 and $6 

Publication 590-A (2023) Chapter 1 Traditional IRAs 33
interest in 2024 before the due date of the return, including extensions. You don’t withdraw the $500 or the interest 

it earned by the due date of your return, including extensions.

You figure your additional tax for 2023 by multiplying 

the excess contribution ($500) shown on Form 5329, 

line 16, by 0.06, giving you an additional tax liability of 

$30. You enter the tax on Form 5329, line 17, and on 

Schedule 2 (Form 1040), line 8. See the filled-in Form 

5329, later.

Excess Contributions Withdrawn by Due 

Date of Return

You won’t 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. Don’t 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.

If you timely filed your 2023 tax return without withdrawing a contribution that you made in 2023, you can still have 

the contribution returned to you within 6 months of the due 

date of your 2023 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 in Pub. 590-B.

Beginning on or after December 29, 2022, the 10% additional tax will not apply to your withdrawal of interest or 

other income, if withdrawn on or before the due date (including extensions) of the income tax return. See Pub. 

590-B for more information.

Form 1099-R. 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 2023 of $1,000, which she withdrew by April 15, 2024, 

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 2023 (the 

year in which the excess contribution was made).

Maria doesn’t have to report the excess contribution as 

income nor pay the 6% additional tax because she withdrew the excess contribution by the due date of her return. 

Maria receives a Form 1099-R showing that the earnings 

are taxable for 2023.

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 2023 to your IRA weren’t more than $6,500 ($7,500 

if you are age 50 or older).

• You didn’t 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 weren’t 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 1040-X for that year and don’t 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.

34 Chapter 1 Traditional IRAs Publication 590-A (2023)
Year(s) Contribution limit Contribution limit 

if age 50 or older 

at the end of the 

year

2023 $6,500 $7,500

2019 through 2022 $6,000 $7,000

2013 through 2018 $5,500 $6,500

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. 

Don’t 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 can’t 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 

doesn’t, 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 

1-5.

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 or less, 

enter -0- ............................. 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. You were entitled to contribute to your traditional IRA and deduct $1,000 in 2022 and $1,500 in 2023 

(the amounts of your taxable compensation for these 

years). For 2022, you contributed $1,400 but could deduct 

only $1,000. In 2022, $400 is an excess contribution subject to the 6% tax. However, you wouldn’t have to pay the 

6% tax if you withdrew the excess (including any earnings) 

before the due date of your 2022 return. Because you 

didn’t withdraw the excess, you owe excise tax of $24 for 

2022. To avoid the excise tax for 2023, you can correct the 

$400 excess amount from 2022 in 2023 if your actual contributions are only $1,100 for 2023 (the allowable deductible contribution of $1,500 minus the $400 excess from 

2022 you want to treat as a deductible contribution in 

2023). You can deduct $1,500 in 2023 (the $1,100 actually contributed plus the $400 excess contribution from 

2022). This is shown on Worksheet 1-5. Example—Illustrated.

Worksheet 1-5.

Publication 590-A (2023) Chapter 1 Traditional IRAs 35
Form 5329 2023

Additional Taxes on Qualified Plans 

(Including IRAs) and Other Tax-Favored Accounts

Department of the Treasury 

Internal Revenue Service 

Attach to Form 1040, 1040-SR, or 1040-NR. 

Go to www.irs.gov/Form5329 for instructions and the latest information.

OMB No. 1545-0074

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 the full amount of the early distributions, you may be able to report this tax directly on 

Schedule 2 (Form 1040), line 8, without ling Form 5329. See instructions.

Part I Additional Tax on Early Distributions. Complete this part if you took a taxable distribution (other than a qualied 

disaster 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 Schedule 2 (Form 1040)—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 includible in income (see instructions). 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% (0.10) of line 3. Include this amount on Schedule 2 (Form 1040), line 8 . . 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 and ABLE Accounts. Complete this 

part if you included an amount in income, on Schedule 1 (Form 1040), line 8z, from a Coverdell education savings 

account (ESA) or a qualied tuition program (QTP), or on Schedule 1 (Form 1040), line 8q, from an ABLE account.

5 Distributions included in income from a Coverdell ESA, a QTP, or an ABLE account . . . . . . 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% (0.10) of line 7. Include this amount on Schedule 2 (Form 1040), line 8 . . 8 

Part III Additional Tax on Excess Contributions to Traditional IRAs. Complete this part if you contributed more to 

your traditional IRAs for 2023 than is allowable or you had an amount on line 17 of your 2022 Form 5329.

9 Enter your excess contributions from line 16 of your 2022 Form 5329. See instructions. If zero, go to line 15 9 

10 If your traditional IRA contributions for 2023 are less than your maximum

allowable contribution, see instructions. Otherwise, enter -0- . . . . . . 10 

11 2023 traditional IRA distributions included in income (see instructions) . . . 11 

12 2023 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 2023 (see instructions) . . . . . . . . . . . . . . . . . . 15 

16 Total excess contributions. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . 16 

17 Additional tax. Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 

31, 2023 (including 2023 contributions made in 2024). Include this amount on Schedule 2 (Form 1040), line 8 17 

Part IV Additional Tax on Excess Contributions to Roth IRAs. Complete this part if you contributed more to your Roth 

IRAs for 2023 than is allowable or you had an amount on line 25 of your 2022 Form 5329.

18 Enter your excess contributions from line 24 of your 2022 Form 5329. See instructions. If zero, go to line 23 18 

19 If your Roth IRA contributions for 2023 are less than your maximum allowable

contribution, see instructions. Otherwise, enter -0- . . . . . . . . . 19 

20 2023 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 2023 (see instructions) . . . . . . . . . . . . . . . . . . 23 

24 Total excess contributions. Add lines 22 and 23 . . . . . . . . . . . . . . . . . . 24 

25 Additional tax. Enter 6% (0.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 

2023 (including 2023 contributions made in 2024). Include this amount on Schedule 2 (Form 1040), line 8 25 

For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13329Q Form 5329 (2023) 

Paul Jones 003-00-0000

500

500

30

36 Chapter 1 Traditional IRAs Publication 590-A (2023)
Worksheet 1-5. 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 or less, 

enter -0- ............................. 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 1-6.

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 -0- ..... 3.

4. Subtract line 3 from line 1 .............. 4.

5. Subtract line 2 from line 4. If zero or less, 

enter -0- ............................. 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 1-6.

Reporting Additional Taxes

Generally, you must use Form 5329 to report the tax on 

excess contributions, early distributions, and excess accumulations.

Filing a tax return. If you must file an individual income 

tax return, complete Form 5329 and attach it to your Form 

1040, 1040-SR, or 1040-NR. Enter the total additional 

taxes due on Schedule 2 (Form 1040), line 8.

Not filing a tax return. If you don’t 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, 1040-SR, 

or 1040-NR. Be sure to include your address on page 1 

and your signature and date on page 2. Enclose, but don’t 

attach, a check or money order made payable to “United 

States Treasury” for the tax you owe, as shown on Form 

5329. Write your social security number and “2023 Form 

5329” on your check or money order.

Form 5329 not required. You don’t 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 don’t owe any 

other additional tax on a distribution, multiply the taxable part of the early distribution by 10% and enter the 

result on Schedule 2 (Form 1040), line 8. Enter “No” to 

the left of the line to indicate that you don’t have to file 

Form 5329. 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 isn’t subject to the tax on early distributions.

2.

Roth IRAs

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);

Publication 590-A (2023) Chapter 2 Roth IRAs 37
• 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 section 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 aren’t included in your income. Designated Roth accounts aren’t IRAs and shouldn’t 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 doesn’t impact your eligibility to contribute to the 

other. See Pub. 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 don’t 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, Roth SEP IRA, or a Roth SIMPLE IRA.

Unlike a traditional IRA, you can’t deduct contributions 

to a Roth IRA. But, if you satisfy the requirements, qualified distributions (discussed in chapter 2 of Pub. 590-B) 

are tax free, and if you choose, you can leave amounts in 

your Roth IRA as long as you live.

Beginning in 2023, SEP and SIMPLE IRAs can be 

designated as Roth IRAs.

Traditional IRA. A traditional IRA is any IRA that isn’t a 

Roth IRA or SIMPLE IRA. Traditional IRAs are discussed 

in chapter 1.

TIP

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:

• $228,000 for married filing jointly or qualifying surviving spouse;

• $153,000 for single, head of household, or married filing separately and you didn’t live with your spouse at 

any time during the year; and

• $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 3.

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 $228,000.

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, and taxable non-tuition 

fellowship and stipend 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 to determine your modified AGI.

Don’t subtract conversion income when figuring 

your other AGI-based 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.

TIP

CAUTION

!

38 Chapter 2 Roth IRAs Publication 590-A (2023)
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 is generally the lesser of:

• $6,500 ($7,500 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 is 

generally 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 

don’t affect this limit.

This means that your contribution limit is the lesser of:

• $6,500 ($7,500 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 later under Contribution limit reduced.

SEPs and SIMPLE plans are discussed in Pub. 560.

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 can’t 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 to determine if this reduction applies to you.

Figuring the reduction. If the amount you can contribute must be reduced, use Worksheet 2-2 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 $139,000. You want to make the 

maximum allowable contribution to your Roth IRA for 

2023. Your modified AGI for 2023 is $139,000. You haven’t 

contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $6,500. 

You figure your reduced Roth IRA contribution of $6,060 

as shown on Worksheet 2-2. Example—Illustrated.

TIP

Publication 590-A (2023) Chapter 2 Roth IRAs 39
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, 1040-SR, or 

1040-NR, line 11 .............................................................. 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, 1040-SR, or 1040-NR, 

line 4b) and a rollover from a qualified retirement plan to a Roth IRA 

(included on Form 1040, 1040-SR, or 1040-NR, line 5b) ................... 2.

3. Subtract line 2 from line 1 .................................................... 3.

4. Enter any traditional IRA deduction from Schedule 1 (Form 1040), 

line 20 ......................................................................... 4.

5. Enter any student loan interest deduction from Schedule 1 (Form 1040), 

line 21 ......................................................................... 5.

6. Enter any foreign earned income exclusion and/or housing exclusion from 

Form 2555, line 45 ............................................................ 6.

7. Enter any foreign housing deduction from Form 2555, line 50 ............. 7.

8. Enter any excludable qualified savings bond interest from Form 8815, 

line 14 ......................................................................... 8.

9. Enter any excluded employer-provided adoption benefits from Form 

8839, line 28 .................................................................. 9.

10. Add the amounts on lines 3 through 9 ...................................... 10.

11. Enter:

• $228,000 if married filing jointly or qualifying surviving spouse,

• $10,000 if married filing separately and you lived with your spouse at 

any time during the year, or

• $153,000 for all others .......................... .......................... 11.

Is the amount on line 10 more than the amount on line 11?

If “Yes,” see the Note below.

If “No,” the amount on line 10 is your modified adjusted gross income

for Roth IRA purposes.

Note. If the amount on line 10 is more than the amount on line 11 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 don’t 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 10 above. 

40 Chapter 2 Roth IRAs Publication 590-A (2023)
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 surviving spouse

less than $218,000

you can contribute up to $6,500 

($7,500 if you are age 50 or 

older) as explained under How 

Much Can Be Contributed, 

earlier.

at least $218,000

but less than $228,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced, 

earlier.

$228,000 or more you can’t 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 $6,500 

($7,500 if you are age 50 or 

older) as explained under How 

Much Can Be Contributed, 

earlier.

more than zero (-0-)

but less than $10,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced, 

earlier.

$10,000 or more you can’t contribute to a Roth 

IRA.

single, head of household, or 

married filing separately

 (and you didn’t live with your 

spouse at any time during the 

year)

less than $138,000

you can contribute up to $6,500 

($7,500 if you are age 50 or 

older) as explained under How 

Much Can Be Contributed, 

earlier.

at least $138,000

but less than $153,000

the amount you can contribute 

is reduced as explained under 

Contribution limit reduced, 

earlier.

$153,000 or more you can’t contribute to a Roth 

IRA.

Publication 590-A (2023) Chapter 2 Roth IRAs 41
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).

You can make contributions for 2023 by the due 

date (not including extensions) for filing your 2023 

tax return. This means that most people can make 

contributions for 2023 by April 15, 2024.

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 

TIP

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 contribution 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 

Determining Your Reduced Roth IRA Contribution Limit

Before using this worksheet, check Table 2-1 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 10) .................................................................. 1.

2. Enter: 

• $218,000 if filing a joint return or qualifying surviving spouse,

• $-0- if married filing a separate return and you lived with your spouse 

at any time in 2023, or

• $138,000 for all others ................................................ 2.

3. Subtract line 2 from line 1 ................................................ 3.

4. Enter:

• $10,000 if filing a joint return or qualifying surviving spouse 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:

• $6,500 ($7,500 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.

42 Chapter 2 Roth IRAs Publication 590-A (2023)
earnings are considered earned and received in the year 

the excess contribution was made.

If you timely filed your 2023 tax return without withdrawing a contribution that you made in 2023, you can still have 

the contribution returned to you within 6 months of the due 

date of your 2023 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 1 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 doesn’t 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.

Same trustee. Conversions made with the same 

trustee can be made by redesignating the traditional IRA 

Worksheet 2-2. Example—Illustrated

Before using this worksheet, check Table 2-1 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 10) .............. 1. 139,000

2. Enter: 

• $218,000 if filing a joint return or qualifying surviving spouse,

• $-0- if married filing a separate return and you lived with your spouse at any time in 

2023, or

• $138,000 for all others .......................... .......................... 2. 138,000

3. Subtract line 2 from line 1 .................................................... 3. 1,000

4. Enter:

• $10,000 if filing a joint return or qualifying surviving spouse 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. 0.067

6. Enter the lesser of:

• $6,500 ($7,500 if you are age 50 or older), or

• Your taxable compensation ........................ ........................ 6. 6,500

7. Multiply line 5 by line 6 ....................................................... 7. 436

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. 6,060

9. Enter contributions for the year to other IRAs .................................... 9. 0

10. Subtract line 9 from line 6 .................................................... 10. 6,500

11. Enter the lesser of line 8 or line 10. This is your reduced Roth IRA 

contribution limit .......................................................... 11. 6,060

Publication 590-A (2023) Chapter 2 Roth IRAs 43
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 hadn’t 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 Pub. 505.

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 it) to a 

Roth IRA within 60 days after the distribution. Because 

the distribution is paid directly to you, the payer must 

generally withhold 20% of it. For rules about making a 

rollover of a plan loan offset, including a qualified plan 

loan offset, see Time Limit for Making a Rollover Contribution in chapter 1.

• 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 eligible rollover distribution from one of the types of plans 

CAUTION

!

listed earlier 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 Pub. 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 hadn’t rolled them over into 

a Roth IRA. You don’t include in gross income any part of 

a distribution from a qualified retirement plan that is a return of basis (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 Pub. 505.

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 can’t 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 isn’t 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, 

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.

CAUTION

!

44 Chapter 2 Roth IRAs Publication 590-A (2023)
A rollover from a Roth IRA to an employer retirement 

plan isn’t 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 doesn’t change. The 5-year period begins 

with the first tax year for which the contribution was made 

to the initial Roth IRA. See What Are Qualified Distributions? in chapter 2 of Pub. 590-B.

3.

Retirement Savings 

Contributions Credit 

(Saver's Credit)

What's New

Modified AGI limit for retirement savings contributions credit increased. For 2023, you may be able to 

claim the retirement savings contributions credit if your 

modified AGI isn’t more than:

• $73,000 if your filing status is married filing jointly;

• $54,750 if your filing status is head of household; or

• $36,500 if your filing status is single, married filing 

separately, or qualifying surviving spouse.

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 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, 2005.

2. You aren’t a full-time student (explained later).

3. No one else, such as your parent(s), claims you as a 

dependent on their tax return.

4. Your adjusted gross income (defined later) isn’t more 

than:

a. $73,000 if your filing status is married filing jointly;

b. $54,750 if your filing status is head of household; 

or

c. $36,500 if your filing status is single, married filing 

separately, or qualifying surviving spouse.

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 (AGI). This is generally the 

amount on line 11 of your 2023 Form 1040, 1040-SR, or 

1040-NR. 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

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 isn’t 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 

Publication 590-A (2023) Chapter 3 Retirement Savings Contributions Credit 

(Saver's Credit)

45
any distribution from a Roth IRA that isn’t rolled over, even 

if the distribution isn’t taxable.

Don’t reduce your eligible contributions by any of the 

following.

1. The portion of any distribution which isn’t 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 don’t 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 

2021 and 2022, and plan to do so in 2023 and 2024. You 

received a taxable distribution from a qualified plan in 

2021 and a taxable distribution from an eligible deferred 

compensation plan in 2022. Your spouse received taxable 

distributions from a Roth IRA in 2023 and tax-free distributions from a Roth IRA in 2024 before April 15. You made 

eligible contributions to an IRA in 2023 and you otherwise 

qualify for this credit. You must reduce the amount of your 

qualifying contributions in 2023 by the total of the distributions you received in 2021, 2022, 2023, and 2024.

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 won’t 

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 

didn’t otherwise owe any taxes.

Maximum credit. This is a nonrefundable credit. The 

amount of the credit in any year can’t 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 won’t 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 

Schedule 3 (Form 1040), line 4, and attach Form 8880 to 

your return.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax 

preparation may not be available through Free File. Go 

to IRS.gov/FreeFile to see if you qualify for free online 

federal tax preparation, e-filing, and direct deposit or 

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

46 Publication 590-A (2023)
and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE or download the free IRS2Go app 

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Also, the IRS offers Free Fillable Forms, which can 

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN) at no 

cost.

• The Tax Withholding Estimator (IRS.gov/W4App) 

makes it easier for you to estimate the federal income 

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax information in your 

e-filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the 

information required for the preparer to accurately 

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns 

for others should have a thorough understanding of tax 

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

W-2 filing options to CPAs, accountants, enrolled agents, 

and individuals who process Form W-2, Wage and Tax 

Statement, and Form W-2c, Corrected Wage and Tax 

Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our 

highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving taxpayers with limited-English 

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and 

CAUTION

!

Publication 590-A (2023) 47
every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or 

account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, or 

Form 9000(SP) allows you to elect to receive certain types 

of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the 

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to 

IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on 

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for 

iPad. Our eBooks haven’t been tested on other dedicated 

eBook readers, and eBook functionality may not operate 

as intended.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax 

year.

• See payment plan details or apply for a new payment 

plan.

• Make a payment or view 5 years of payment history 

and any pending or scheduled payments.

• Access your tax records, including key data from your 

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account, 

you can access a variety of information to help you during 

the filing season. You can get a transcript, review your 

most recently filed tax return, and get your adjusted gross 

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional 

submit an authorization request to access your individual 

taxpayer IRS online account. For more information, go to 

IRS.gov/TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. Eight in 

10 taxpayers use direct deposit to receive their refunds. If 

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank 

or credit union that can open an account online.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your 

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

48 Publication 590-A (2023)
The IRS can’t issue refunds before mid-February 

for returns that claimed the EIC or the additional 

child tax credit (ACTC). This applies to the entire 

refund, not just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax must be 

remitted to the IRS in U.S. dollars. Digital assets are not 

accepted. Go to IRS.gov/Payments for information on how 

to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated 

tax payment directly from your checking or savings account at no cost to you.

• Debit Card, Credit Card, or Digital Wallet: Choose an 

approved payment processor to pay online or by 

phone.

• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/Form1040X 

for information and updates.

Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed 

your amended return for it to show up in our system, and processing it can take up to 16 weeks.

CAUTION

!

CAUTION

!

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter. You can now 

upload responses to all notices and letters using the 

Document Upload Tool. For notices that require additional 

action, taxpayers will be redirected appropriately on 

IRS.gov to take further action. To learn more about the tool 

go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may 

not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing 

translations in 2023. You will continue to receive communications, including notices and letters, in English until they 

are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. 

Go to IRS.gov/LetUsHelp for the topics people ask about 

most. If you still need help, TACs provide tax help when a 

tax issue can’t be handled online or by phone. All TACs 

now provide service by appointment, so you’ll know in advance that you can get the service you need without long 

wait times. Before you visit, go to IRS.gov/TACLocator to 

find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, 

under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. TAS strives 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

Publication 590-A (2023) 49
everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. To find your advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

• Download Pub. 1546, The Taxpayer Advocate Service 

Is Your Voice at the IRS, available at IRS.gov/pub/irspdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to TAS at IRS.gov/SAMS. Be sure to not include 

any personal taxpayer information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level 

and who need to resolve tax problems with the IRS. LITCs 

can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, 

LITCs can provide information about taxpayer rights and 

responsibilities in different languages for individuals who 

speak English as a second language. Services are offered 

for free or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, 

Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/

4134.pdf.

50 Publication 590-A (2023)
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 2023.

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 

2023.

c. Worksheet 3, Computation of 

Taxable Social Security Benefits.

d. Comprehensive Example and 

completed worksheets.

3. Appendix C—Line 1 Worksheet.

Publication 590-A (2023) 51
Summary Record of Traditional IRA(s) for 

2023

Appendix A.

Keep for Your Records

Name ______________________________________

I was covered not covered by my employer's retirement plan during the year.

I became age 591/2 on ______________________________________(month) (day) (year)

Contributions

Name of traditional IRA Date

Amount contributed for 

2023 

Check if 

rollover 

contribution 

Fair market value of IRA as 

of December 31, 2023, 

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 2023 and earlier years (from Form 8606, line 14) ............. $

Note. You should keep copies of your income tax return, and Forms W-2, 8606, and 5498.

52 Publication 590-A (2023)
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 

are 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 surviving spouse, 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 1040-SR.

(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, or any exclusion of interest from savings bonds to be 

reported on Form 8815. See the Line 1 Worksheet in Appendix C for assistance with 

this calculation.) ................................................................... 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. 

territories 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 Form 1040 or 1040-SR, line 2a ..... 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 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 0.85. If line 10 is zero, enter -0- ...................................... 14.

15. Add lines 13 and 14 ................................................................ 15.

16. Multiply line 2 by 0.85 .............................................................. 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.

Publication 590-A (2023) 53
Appendix B. (Continued) Keep for Your Records

Worksheet 2

Computation of Traditional IRA Deduction for 2023

(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 surviving 

spouse $116,000* $136,000

married filing jointly (you 

are not covered by an 

employer plan but your 

spouse is) $218,000* $228,000

single, or head of 

household $73,000* $83,000

married filing 

separately** $0* $10,000

* If your modified AGI isn’t over this amount, you can take an IRA deduction for your contributions of up to the lesser 

of $6,500 ($7,500 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 didn’t 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 aren’t 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 isn’t 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 surviving spouse and you 

are covered by an employer plan, multiply line 3 by 33% 

 (0.33) (by 38% (0.38) if you are age 50 or older).

• All others, multiply line 3 by 65% (0.65) (by 75% (0.75) if 

you are age 50 or older).

.................. 4.

5. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 

(deductible part of self-employment tax), and Schedule 1 (Form 1040), line 16 

(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 2023, but don’t 

enter more than $6,500 ($7,500 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 your Schedule 1 (Form 1040), line 20. (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.

54 Publication 590-A (2023)
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 surviving spouse, 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 1040-SR.

(For purposes of this worksheet, figure your AGI without taking into account any IRA 

deduction, any student loan interest deduction, or 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. See the Line 1 Worksheet in Appendix C for assistance with 

this calculation.) ............................................................... 1. 

2. Deduction(s) from line 7 of Worksheet(s) 2 ........................................ 2. 

3. Subtract line 2 from line 1 ....................................................... 3. 

4. Enter the 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. territories, 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 2a of Form 1040 or 

1040-SR ...................................................................... 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 0.85. If line 12 is zero, enter -0- .................................. 16. 

17. Add lines 15 and 16 ............................................................ 17. 

18. Multiply line 4 by 0.85 ........................................................... 18. 

19. Taxable social security benefits. Enter the smaller of line 17 or line 18 .............. 19. 

Publication 590-A (2023) 55
Appendix B. (Continued) Keep for Your Records

Comprehensive Example

Determining Your Traditional IRA Deduction and

the Taxable Portion of Your Social Security Benefits

You are married and file a joint return. You are 65 years old and had 2023 wages of $100,000. Your spouse didn’t work in 

2023. You received social security benefits of $12,000 and made a $7,500 contribution to your traditional IRA for the year. 

You had no foreign income, no tax-exempt interest, and no adjustments to income on lines 11 through 26 on your Schedule 1 

(Form 1040). You participated in a section 401(k) retirement plan at work.

You complete Worksheets 1 and 2. Worksheet 2 shows that your 2023 IRA deduction is $6,770. You must either withdraw 

the contributions that are more than the deduction amount (the $730 show on line 8 of Worksheet 2) or treat the excess 

amounts as nondeductible contributions (in which case you must complete Form 8606 and attach it to your Form 1040-SR).

The completed worksheets that follow show how you figured your modified AGI to determine the IRA deduction and the 

taxable social security benefits to report on your Form 1040-SR.

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 surviving spouse, 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 1040-SR.

(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, or any exclusion of interest from savings bonds to be 

reported on Form 8815. See the Line 1 Worksheet in Appendix C for assistance with 

this calculation.) ................................................................... 1. 108,000

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. 

territories 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 Form 1040 or 1040-SR, line 2a ..... 5. 0

6. Add lines 1, 3, 4, and 5 ............................................................. 6. 114,000

7. Enter the amount listed below for your filing status.

• $32,000 if you checked box A above.

• $25,000 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. 82,000

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. 70,000

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 0.85. If line 10 is zero, enter -0- ...................................... 14. 59,500

15. Add lines 13 and 14 ................................................................ 15. 65,500

16. Multiply line 2 by 0.85 .............................................................. 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. 118,200

56 Publication 590-A (2023)
Appendix B. (Continued) Keep for Your Records

Worksheet 2

Computation of Traditional IRA Deduction for 2023

(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 surviving 

spouse $116,000* $136,000

married filing jointly (you 

aren’t covered by an 

employer plan but your 

spouse is) $218,000* $228,000

single, or head of 

household $73,000* $83,000

married filing 

separately** $0* $10,000

* If your modified AGI isn’t over this amount, you can take an IRA deduction for your contributions of up to the lesser 

of $6,500 ($7,500 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 didn’t 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. 136,000

2. Enter your modified AGI from Worksheet 1, line 19 ................................ 2. 118,200

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

IRA contributions aren’t deductible. Proceed to Worksheet 3.

3. Subtract line 2 from line 1 ....................................................... 3. 17,800

4. Multiply line 3 by the percentage below that applies to you. If the result isn’t 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 surviving spouse and you 

are covered by an employer plan, multiply line 3 by 33% 

 (0.33) (by 38% (0.38) if you are age 50 or older).

• All others, multiply line 3 by 65% (0.65) (by 75% (0.75) if 

you are age 50 or older).

.................. 4. 6,770

5. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 

(deductible part of self-employment tax), and Schedule 1 (Form 1040), line 16 

(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. 105,000

6. Enter contributions you made, or plan to make, to your traditional IRA for 2023, but don’t 

enter more than $6,500 ($7,500 if you are age 50 or older) .......................... 6. 7,500

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

amount if you choose). Enter this amount on your Schedule 1 (Form 1040), line 20. (If the 

amount on line 6 is more than the amount on line 7, complete line 8) .................. 7. 6,770

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. 730

Publication 590-A (2023) 57
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 surviving spouse, 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 1040-SR.

(For purposes of this worksheet, figure your AGI without taking into account any IRA 

deduction, any student loan interest 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. See the Line 1 Worksheet in Appendix C for assistance with this 

calculation.) ................................................................... 1. 118,200

2. Deduction(s) from line 7 of Worksheet(s) 2 ......................................... 2. 6,770

3. Subtract line 2 from line 1 ....................................................... 3. 111,430

4. Enter the 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. territories, 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 Form 1040 or 1040-SR, 

line 2a ....................................................................... 7. 0

8. Add lines 3, 5, 6, and 7 ......................................................... 8. 117,430

9. Enter the amount listed below for your filing status.

• $32,000 if you checked box A above.

• $25,000 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. 85,430

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. 73,430

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 0.85. If line 12 is zero, enter -0- ................................... 16. 62,416

17. Add lines 15 and 16 ............................................................ 17. 62,416

18. Multiply line 4 by 0.85 ........................................................... 18. 10,200

19. Taxable social security benefits. Enter the smaller of line 17 or line 18 .............. 19. 10,200

Appendix C. Line 1 Worksheet

Line 1 Supplemental Worksheet

1. Enter your adjusted gross income (AGI) from Form 1040 or 1040-SR, line 11 ................... 1.

2. Enter any social security benefits included in AGI from Form 1040 or 1040-SR, line 6b ............ 2.

3. Enter your IRA deduction amount from Schedule 1 (Form 1040), line 20 ....................... 3.

4. Enter your student loan interest deduction from Schedule 1 (Form 1040), line 21 ................ 4.

5 Enter the amount of savings bond interest reported on Form 8815, line14 ...................... 5.

6. Add the amounts on lines 2 through 6 ............................................. 6.

7. Subtract the amount on line 6 from line 1 .............................................. 7.

8. Enter this amount on line 1 of Worksheets 1 and 3 ................................... 8.

58 Publication 590-A (2023)
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 31

20% withholding 25

6% excise tax on excess 

contributions to Roth IRAs 42

60-day period for rollovers 21

A

Additional taxes 31

(See also Penalties)

Reporting 37

Adjusted gross income (AGI) 13, 

38

(See also Modified adjusted gross 

income (AGI))

Retirement savings contributions 

credit 45

Age 50:

Contributions 9

Age limit:

Traditional IRA 10

Alimony 6

Annuity contracts 9

Borrowing on 32

Assistance (See Tax help)

B

Basis:

Traditional IRAs 16

Bond purchase plans:

Rollovers from 27

Bonds, retirement (See Individual 

retirement bonds)

Broker's commissions 8, 11

C

Collectibles 33

Community property 8

Compensation:

Alimony 6

Defined 6

Income included (Table 1-1) 7

Nontaxable combat pay 6

Self-employment 6

Wages, salaries, etc. 6

Conduit IRAs 26

Contribution limits:

More than one IRA 9

Contributions

Designating the year 10

Distributions in same year as 14

Excess (See Excess contributions)

Less than maximum 10

Nondeductible (See Nondeductible 

contributions)

Not required 11

Qualified reservist repayments 8

Recharacterizing 

(See Recharacterization)

Retirement savings contributions 

credit 45

Roth IRAs 38-43

Traditional IRAs 8-10

When to contribute 10

Withdrawing before due date of 

return 30

Conversions:

To Roth IRAs 43

Credits

Retirement savings contributions 

credit 45, 46

D

Deductions

Figuring reduced IRA deduction 15

Phaseout 13

Traditional IRAs 11-16

Deemed IRAs 37

Defined benefit plans 12

Defined contribution plans 11

Difficulty of care payments:

Compensation 15

Nondeductible IRA contributions 15

Distributions:

Contributions in same year as 14

Income from 14

Inherited IRAs (See Inherited IRAs)

Divorce:

Rollovers by former spouse 27

Transfers incident to 27

E

Early distributions 31

(See also Penalties)

Tax 31

Employer and employee 

association trust accounts 8

Employer plans:

Covered by 11

Year(s) covered 11

Employer retirement plans 11

Defined benefit plans 12

Defined contribution plans 11

Effect of modified AGI on deduction 

(Table 1-2) 13

Limit if covered by 13

Prohibited transactions 32

Endowment contracts (See Annuity 

contracts)

Excess contributions 33-37

Closed tax year 37

Deducted in earlier year 34

Deductible this year (Worksheet 

1-5) 35

Deductible this year if any were 

deducted in closed tax year 

(Worksheet 1-6) 37

Deducting in a later year 35

Due to incorrect rollover 

information 35

Recharacterizing 28

Roth IRAs 42

Tax 31

Withdrawn after due date of 

return 34

Withdrawn by due date of return 34

Exempt transactions 32

F

Federal judges 11

Fiduciaries:

Prohibited transactions 32

Filing before IRA contribution is 

made 10

Filing status 10

Deduction phaseout and 13

Firefighters, volunteer 12

Form 1040:

Modified AGI calculation from 14

Form 1040-NR:

Modified AGI calculation from 14

Form 1040-SR:

Modified AGI calculation from 14

Form 1099-R:

Distribution code 1 used on 37

Withdrawal of excess 

contribution 34

Form 5329 37

Form 8606 15

Failure to file, penalty 16

Form 8880 46

Form W-2:

Employer retirement plans 11

Frozen deposits 23

Full-time student:

Retirement savings contributions 

credit 45

H

How to:

Set up an IRA 7

Treat withdrawn contributions 34

I

Individual retirement accounts 7

Individual retirement annuities 7, 8

Publication 590-A (2023) 59
Individual retirement arrangements 

(IRAs):

How to set up 7

When to set up 7

Individual retirement bonds 8

Inherited IRAs 20

Rollovers 24

Interest on IRA 3

Investment in collectibles:

Collectibles defined 33

Exception 33

K

Kay Bailey Hutchison Spousal 

IRAs:

Contribution limits 9

Deductions 11

Roth IRA contribution limits 38

Keogh plans:

Rollovers from 27

L

Last-in first-out rule 31

Life insurance 27

Line 1 Worksheet 58

M

Military death gratuities 44

Missing children, photographs of 3

Modified adjusted gross income 

(AGI):

Employer retirement plan coverage 

and deduction (Table 1-2) 13

Figuring (Worksheet 1-1) 15

No employer retirement plan 

coverage and deduction 

(Table 1-3) 14

Roth IRAs 38

Effect on contribution amount 

(Table 2-1) 41

More than one IRA 9

Recharacterization 30

N

Nondeductible contributions 15

Failure to report 16

Overstatement penalty 16

Notice:

Qualified employer plan to provide 

prior to rollover distribution 25

Rollovers 21

P

Partial rollovers 24, 26

Penalties 31-37

Excess contributions 33-37

Roth IRAs 42

Exempt transactions 32, 33

Failure to file Form 8606 16

Overstatement of nondeductible 

contributions 16

Prohibited transactions 32, 33

Reporting 37

Phaseout of deduction 13

Pledging account as security 32

Prohibited transactions 32, 33

Taxes on 32

Publications (See Tax help)

Q

Qualified domestic relations orders 

(QDROs) 27

R

Recharacterization 28-30

Determining amount of net income 

due to contribution and total 

amount to be recharacterized 

(Worksheet 1-3) 29

Reporting 30

Timing of 29

Recordkeeping requirements:

Summary record of traditional IRAs 

for 2022 (Appendix A) 52

Traditional IRAs 16

Reporting:

Additional taxes 37

Deductible contributions 15

Recharacterization 30

Rollovers:

From employer plans 27

From IRAs 24

Reservists 12

Qualified reservist repayments 8

Retirement bonds (See Individual 

retirement bonds)

Retirement savings contributions 

credit 45, 46

Rollovers 21-27

Amount 23

Choosing an option (Table 1-5) 26

Completed after 60-day period 21

Conduit IRAs 26

Direct rollover option 25

Extension of period 23

From bond purchase plan 27

From employer's plan into a Roth 

IRA 44

From employer's plan into an 

IRA 24

From Keogh plans 27

From one IRA into another 23

From Roth IRAs 44

From traditional IRA 21

Inherited IRAs 24

Nonspouse beneficiary 25

Notice 21

Partial 24, 26

Tax treatment of rollover from 

traditional IRA to eligible 

retirement plan other than an 

IRA 21

Time limit 21

To Roth IRAs 43

To traditional IRA 21

Waiting period between 23, 26

Withholding (See Withholding)

Roth IRAs 37

Age limit 38

Contribution limit reduced 39

Determining reduced limit 

(Worksheet 2-2) 42

Contributions 38-43

Timing of 42

To traditional IRAs and to Roth 

IRAs 39

Conversion 28, 43

Defined 38

Excess contributions 42

Modified AGI:

Effect on contribution amount 

(Table 2-1) 41

Figuring (Worksheet 2-1) 40

Rollovers from 44

Setting up 38

Spouse 38

Traditional IRAs converted into 28

S

Section 501(c)(18) plan 9

Self-certification 23

Self-employed persons:

Deductible contributions 15

Income of 6

Separated taxpayers:

Filing status of 13

Servicemembers group life 

insurance 44

Services received at reduced or no 

cost 33

SIMPLE IRAs 8

Traditional IRA, mistakenly moved 

to 28

Simplified employee pensions 

(SEPs) 8

Social Security recipients 13

Contributions to traditional IRAs, 

worksheet (Appendix B) 53, 56

Spousal IRAs (See Kay Bailey 

Hutchison Spousal IRAs or Inherited 

IRAs)

Students:

Retirement savings contributions 

credit 45

Surviving spouse:

Rollovers by 27

T

Tables:

Compensation, types of 

(Table 1-1) 7

Modified AGI:

Employer retirement plan 

coverage and deduction 

(Table 1-2) 13

No employer retirement plan 

coverage and deduction 

(Table 1-3) 14

60 Publication 590-A (2023)
Roth IRAs, effect on contribution 

(Table 2-1) 41

Rollover vs. direct payment to 

taxpayer (Table 1-5) 26

Using this publication (Table I-1) 4

Tax advantages of IRAs 3

Tax credits

Retirement savings contributions 

credit 45, 46

Tax help 46

Tax year 11

Tax-sheltered annuities:

Rollovers from 27

Traditional IRAs 6-37

Contribution limits 8-10

Contributions 8, 10

Due date 10

To Roth IRAs and to traditional 

IRAs 39

Converting into Roth IRA 28

Cost basis 16

Deductions 11-16

Defined 6

Disclosures 8

Excess contributions 33-37

Inherited IRAs 20

Loss of IRA status 32

Mistakenly moved to SIMPLE 

IRA 28

Recordkeeping 16

Reduced IRA deduction for 

2021 16

Rollovers (See Rollovers)

Setting up 6-8

Social Security recipients 13, 53, 

56

Summary record for 2022 

(Appendix A) 52

Transfers 20

Types of 7

Withdrawing or using assets 30, 31

Transfers 20

Divorce 27

To Roth IRAs 20, 43

Trustee to trustee 21, 43

Trustee-to-trustee transfers 21

To Roth IRAs 43

Trustees' fees 8, 11

U

Unrelated Business Income 33

V

Volunteer firefighters 12

W

Withdrawing or using assets

Contribution withdrawal, before due 

date of return 30

Determining total amount to be 

withdrawn (Worksheet 1-4) 30

Traditional IRAs 30, 31

Withholding:

Direct rollover option 25

Eligible rollover distribution paid to 

taxpayer 25

Worksheets:

Excess contributions deductible this 

year (Worksheet 1-5) 35

If any were deducted in closed 

tax year (Worksheet 1-6) 37

Figuring amount of net income due 

to IRA contribution and total 

amount to be recharacterized 

(Worksheet 1-3) 29

Figuring amount of net income due 

to IRA contribution and total 

amount to be withdrawn 

(Worksheet 1-4) 30

Figuring modified AGI (Worksheet 

1-1) 15

Roth IRAs:

Figuring modified AGI 

(Worksheet 2-1) 40

Figuring reduced contribution 

limit (Worksheet 2-2) 42

Social Security recipients who 

contribute to traditional IRAs 

(Appendix B) 53, 56

Publication 590-A (2023) 61