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Filing 1040ez

File State Tax OnlineFle 2012 Taxes Late Online Tax FilingHr Block Free FilingHow Can I File My 2006 Taxes1040x 20111040ez Tax Form 2013How To File 2012 Federal TaxesAmended Tax ReturnsTurbo Tax 1040ezIrs 1040xWww 1040ez Tax Return FormFree Tax UsaTurbotax 20131040 Ez Forms1040x Fillable FormsFile Federal And State Tax For FreeH And R Block Free Tax1040 Ez Tax ReturnHow Can I File 2011 Taxes OnlineTax Forms 1040ez 2014Print 1040ezIrs 1040x Form Download1040 Ez 2011IrsIrs Forms 1040Help With 1040xTax Return 2011 DeadlineFree Turbotax For Military1040x Tax Form 2012Tax Forms 1040ezIrs 2012 Tax Forms 1040ez InstructionsNj 1040nr 20111040 Tax Forms PrintableTaxact 20101040x Form 20131040 Ez Tax Form 2011H&r Block Free Military Taxes2012 1040ezE Filing Income TaxTax Act

Filing 1040ez

Filing 1040ez Publication 515 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Filing 1040ez Tax questions. Filing 1040ez Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 515, such as legislation enacted after it was published, go to www. Filing 1040ez irs. Filing 1040ez gov/pub515. Filing 1040ez What's New Deposit interest paid to certain nonresident alien individuals. Filing 1040ez  New rules apply to reporting of deposit interest paid to certain nonresident alien individuals on or after January 1, 2013. Filing 1040ez Deposit interest of $10 or more paid to certain nonresident alien individuals must be reported on Form 1042–S. Filing 1040ez See Deposit interest paid to certain nonresident alien individuals in 2013. Filing 1040ez Portfolio interest. Filing 1040ez . Filing 1040ez  The rules determining whether interest is considered portfolio interest changed for obligations issued after March 18, 2012. Filing 1040ez Generally, interest paid on nonregistered (bearer) bonds will not be treated as portfolio interest. Filing 1040ez See Portfolio interest. Filing 1040ez U. Filing 1040ez S. Filing 1040ez real property interest. Filing 1040ez  Generally, the treatment of a regulated investment company (RIC) as a qualified investment entity (QIE) was scheduled to expire at the end of 2011. Filing 1040ez The provision has been extended through 2013. Filing 1040ez The special rules that apply to distributions from a QIE attributable to the gain from the sale or exchange of a U. Filing 1040ez S. Filing 1040ez real property interest will continue to apply to any distribution from a RIC. Filing 1040ez See Qualified investment entities under U. Filing 1040ez S. Filing 1040ez Real Property Interest. Filing 1040ez Interest-related dividends and short-term capital gain dividends received from mutual funds. Filing 1040ez  The exemption from withholding on certain interest-related dividends and short-term capital gain dividends paid by a mutual fund or other regulated investment company was scheduled to expire at the end of 2011. Filing 1040ez These provisions have been extended through 2013. Filing 1040ez Partnership withholding rate on effectively connected income. Filing 1040ez  For 2013, the rate for withholding on noncorporate partners has increased to 39. Filing 1040ez 6%. Filing 1040ez The rate for corporate partners remains 35%. Filing 1040ez Reminders Exemption from requirement to withhold for certain payments to qualified securities lenders. Filing 1040ez  If you made U. Filing 1040ez S. Filing 1040ez -source substitute dividend payments to qualified securities lenders, and these payments are part of a chain of substitute dividend payments, you may be exempt from withholding tax on the payments. Filing 1040ez See Amounts paid to qualified securities lenders . Filing 1040ez Electronic deposits. Filing 1040ez  You must make all deposits of taxes electronically. Filing 1040ez Substitute forms. Filing 1040ez  Any substitute forms you use must comply with the requirements in Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns. Filing 1040ez If they do not, the forms may be rejected as incorrect and the IRS may impose penalties. Filing 1040ez See Penalties. Filing 1040ez Filing electronically. Filing 1040ez  If you file Form 1042-S electronically, you will use the Filing Information Returns Electronically (FIRE) system. Filing 1040ez You get to the system through the Internet at fire. Filing 1040ez irs. Filing 1040ez gov. Filing 1040ez For files submitted on the FIRE system, it is the responsibility of the filer to verify the results of the transmission within 5 business days. Filing 1040ez The IRS will not mail error reports for files that are bad. Filing 1040ez Qualified intermediaries. Filing 1040ez  A branch of a financial institution may not act as a qualified intermediary in a country that does not have approved know-your-customer rules. Filing 1040ez See Qualified intermediary under Foreign Intermediaries. Filing 1040ez Requests for extensions on Form 8809 must be filed electronically. Filing 1040ez  Requests on Form 8809 for an extension of time to file Form 1042–S must be made electronically if the request is for more than one payer. Filing 1040ez See Extension to file Form 1042-S with the IRS. Filing 1040ez Photographs of missing children. Filing 1040ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Filing 1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Filing 1040ez 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. Filing 1040ez Introduction This publication is for withholding agents who pay income to foreign persons, including nonresident aliens, foreign corporations, foreign partnerships, foreign trusts, foreign estates, foreign governments, and international organizations. Filing 1040ez Specifically, it describes the persons responsible for withholding (withholding agents), the types of income subject to withholding, and the information return and tax return filing obligations of withholding agents. Filing 1040ez In addition to discussing the rules that apply generally to payments of U. Filing 1040ez S. Filing 1040ez source income to foreign persons, it also contains sections on the withholding that applies to the disposition of U. Filing 1040ez S. Filing 1040ez real property interests and the withholding by partnerships on income effectively connected with the active conduct of a U. Filing 1040ez S. Filing 1040ez trade or business. Filing 1040ez Beginning in 2014, additional withholding rules become effective under Chapter 4 of the Internal Revenue Code as added by the Foreign Account Tax Compliance Act (FATCA). Filing 1040ez U. Filing 1040ez S. Filing 1040ez withholding agents will be required to withhold on certain types of payments made to foreign financial institutions that do not enter into an agreement with the IRS. Filing 1040ez For information on these provisions, go to www. Filing 1040ez irs. Filing 1040ez gov/fatca. Filing 1040ez Comments and suggestions. Filing 1040ez   We welcome your comments about this publication and your suggestions for future editions. Filing 1040ez   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Filing 1040ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Filing 1040ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Filing 1040ez   You can email us at taxforms@irs. Filing 1040ez gov. Filing 1040ez Please put “Publications Comment” on the subject line. Filing 1040ez You can also send us comments from www. Filing 1040ez irs. Filing 1040ez gov/formspubs/. Filing 1040ez Select “Comment on Tax Forms and Publications” under “Information About. Filing 1040ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Filing 1040ez Ordering forms and publications. Filing 1040ez   Visit www. Filing 1040ez irs. Filing 1040ez gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Filing 1040ez Internal Revenue Service 1201 N. Filing 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Filing 1040ez   If you have a tax question, check the information available on IRS. Filing 1040ez gov or call 1-800-829-1040. Filing 1040ez We cannot answer tax questions sent to either of the above addresses. Filing 1040ez Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 519 U. Filing 1040ez S. Filing 1040ez Tax Guide for Aliens 901 U. Filing 1040ez S. Filing 1040ez Tax Treaties Form (and Instructions) SS-4 Application for Employer Identification Number W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-7 Application for IRS Individual Taxpayer Identification Number W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-8EXP Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding W-8IMY Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Filing 1040ez S. Filing 1040ez Branches for United States Tax Withholding 941 Employer's QUARTERLY Federal Tax Return 1042 Annual Withholding Tax Return for U. Filing 1040ez S. Filing 1040ez Source Income of Foreign Persons 1042-S Foreign Person's U. Filing 1040ez S. Filing 1040ez Source Income Subject to Withholding 1042-T Annual Summary and Transmittal of Forms 1042-S See How To Get Tax Help at the end of this publication, for information about getting publications and forms. Filing 1040ez Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Hurricane Isaac in Louisiana

LA/MS-2012-15, Sept. 5, 2012

Updated 10/22/12 to include Pointe Coupee and West Baton Rouge parishes

Updated 10/3/12 to include Allen, Morehouse and St. Martin parishes

Updated 9/17/12 to include East Baton Rouge, East Feliciana and West Feliciana parishes.

Updated 9/10/12 to include Assumption, Iberville, St. Helena, St. James, St. Mary, Tangipahoa, Terrebonne, and Washington parishes.

NEW ORLEANS — Victims of Hurricane Isaac that began on Aug. 26, 2012 in parts of Louisiana may qualify for tax relief from the Internal Revenue Service.

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Louisiana will receive tax relief, and other locations may be added in coming days based on additional damage assessments by FEMA.

The President has declared the parishes of Allen, Ascension, Assumption, East Baton Rouge, East Feliciana, Iberville, Jefferson, Lafourche, Livingston, Morehouse, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary,  St. Tammany,  Tangipahoa, Terrebonne, Washington,  West Baton Rouge and West Feliciana a federal disaster area. Individuals who reside or have a business in these parishes may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 26, and on or before Jan. 11, 2013, have been postponed to Jan. 11, 2013. This includes the quarterly estimated tax payment due on Sept. 17, 2012.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 26, and on or before Sept. 10, as long as the deposits are made by Sept. 10, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The parishes listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and is entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Jan. 11, 2013, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 26 and on or before Jan. 11, 2013.

The IRS also gives affected taxpayers until Jan. 11, 2013, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 26 and on or before Jan. 11, 2013.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 26 and on or before Sept. 10 provided the taxpayer makes these deposits by Sept. 10.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year's return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year's return should put the Disaster Designation “LOUISIANA/HURRICANE ISAAC” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, IRS.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Page Last Reviewed or Updated: 18-Sep-2013

The Filing 1040ez

Filing 1040ez 2. Filing 1040ez   Roth IRAs Table of Contents What's New for 2013 What's New for 2014 Reminders Introduction What Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA?How Much Can Be Contributed? When Can You Make Contributions? What if You Contribute Too Much? Can You Move Amounts Into a Roth IRA?Conversions Rollover From Employer's Plan Into a Roth IRA Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Rollover From a Roth IRA Rollover of Exxon Valdez Settlement Income Rollover of Airline Payments Are Distributions Taxable?What Are Qualified Distributions? Additional Tax on Early Distributions Ordering Rules for Distributions How Do You Figure the Taxable Part? Must You Withdraw or Use Assets?Minimum distributions. Filing 1040ez Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. Filing 1040ez  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. Filing 1040ez If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. Filing 1040ez However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Filing 1040ez For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. Filing 1040ez Modified AGI limit for Roth IRA contributions increased. Filing 1040ez  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Filing 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Filing 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Filing 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Filing 1040ez See Can You Contribute to a Roth IRA? in this chapter. Filing 1040ez Net Investment Income Tax. Filing 1040ez  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Filing 1040ez However, these distributions are taken into account when determining the modified adjusted gross income threshold. Filing 1040ez Distributions from a nonqualified retirement plan are included in net investment income. Filing 1040ez See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Filing 1040ez What's New for 2014 Modified AGI limit for Roth IRA contributions increased. Filing 1040ez  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. Filing 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. Filing 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2014 and your modified AGI is at least $114,000. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. Filing 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Filing 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Filing 1040ez Reminders Deemed IRAs. Filing 1040ez  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. Filing 1040ez If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. Filing 1040ez An employee's account can be treated as a traditional IRA or a Roth IRA. Filing 1040ez For this purpose, a “qualified employer plan” includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), A tax-sheltered annuity plan (section 403(b) plan), and A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. Filing 1040ez Designated Roth accounts. Filing 1040ez  Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. Filing 1040ez These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. Filing 1040ez Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. Filing 1040ez Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. Filing 1040ez A contribution to one does not impact your eligibility to contribute to the other. Filing 1040ez See Publication 575, for more information on designated Roth accounts. Filing 1040ez Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. Filing 1040ez Contributions not reported. Filing 1040ez   You do not report Roth IRA contributions on your return. Filing 1040ez 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). Filing 1040ez It can be either an account or an annuity. Filing 1040ez Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. Filing 1040ez To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. Filing 1040ez A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Filing 1040ez Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. Filing 1040ez But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. Filing 1040ez Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live. Filing 1040ez Traditional IRA. Filing 1040ez   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Filing 1040ez Traditional IRAs are discussed in chapter 1. Filing 1040ez When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. Filing 1040ez However, the time for making contributions for any year is limited. Filing 1040ez See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. Filing 1040ez Can You Contribute to a Roth IRA? Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: $188,000 for married filing jointly or qualifying widow(er), $127,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, and $10,000 for married filing separately and you lived with your spouse at any time during the year. Filing 1040ez You may be able to claim a credit for contributions to your Roth IRA. Filing 1040ez For more information, see chapter 4. Filing 1040ez Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. Filing 1040ez Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000. Filing 1040ez Compensation. Filing 1040ez   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. Filing 1040ez It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. Filing 1040ez For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. Filing 1040ez Modified AGI. Filing 1040ez   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. Filing 1040ez Use Worksheet 2-1 , later, to determine your modified AGI. Filing 1040ez    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. Filing 1040ez Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. Filing 1040ez 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. Filing 1040ez Worksheet 2-1. Filing 1040ez Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. Filing 1040ez 1. Filing 1040ez Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. Filing 1040ez   2. Filing 1040ez Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, line 11b, or Form 1040NR, line 16b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 1040A, line 12b, or Form 1040NR, line 17b) 2. Filing 1040ez   3. Filing 1040ez Subtract line 2 from line 1 3. Filing 1040ez   4. Filing 1040ez Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. Filing 1040ez   5. Filing 1040ez Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. Filing 1040ez   6. Filing 1040ez Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. Filing 1040ez   7. Filing 1040ez Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. Filing 1040ez   8. Filing 1040ez Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. Filing 1040ez   9. Filing 1040ez Enter any foreign housing deduction from Form 2555, line 50 9. Filing 1040ez   10. Filing 1040ez Enter any excludable qualified savings bond interest from Form 8815, line 14 10. Filing 1040ez   11. Filing 1040ez Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. Filing 1040ez   12. Filing 1040ez Add the amounts on lines 3 through 11 12. Filing 1040ez   13. Filing 1040ez Enter: $188,000 if married filing jointly or qualifying widow(er), $10,000 if married filing separately and you lived with your spouse at any time during the year, or $127,000 for all others 13. Filing 1040ez   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. Filing 1040ez  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. Filing 1040ez       Note. Filing 1040ez If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. Filing 1040ez (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. Filing 1040ez ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. Filing 1040ez If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above. Filing 1040ez Roth IRAs only. Filing 1040ez   If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation. Filing 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . Filing 1040ez Roth IRAs and traditional IRAs. Filing 1040ez   If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. Filing 1040ez Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. Filing 1040ez   This means that your contribution limit is the lesser of: $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. Filing 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . Filing 1040ez   Simplified employee pensions (SEPs) are discussed in Publication 560. Filing 1040ez Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. Filing 1040ez Repayment of reservist distributions. Filing 1040ez   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. Filing 1040ez However, the total repayments cannot be more than the amount of your distribution. Filing 1040ez Note. Filing 1040ez 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. Filing 1040ez For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. Filing 1040ez Contribution limit reduced. Filing 1040ez   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. Filing 1040ez Use Table 2-1, later, to determine if this reduction applies to you. Filing 1040ez Table 2-1. Filing 1040ez 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). Filing 1040ez IF you have taxable compensation and your filing status is . Filing 1040ez . Filing 1040ez . Filing 1040ez AND your modified AGI is . Filing 1040ez . Filing 1040ez . Filing 1040ez THEN . Filing 1040ez . Filing 1040ez . Filing 1040ez married filing jointly or  qualifying widow(er) less than $178,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Filing 1040ez at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing 1040ez $188,000 or more you cannot contribute to a Roth IRA. Filing 1040ez married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Filing 1040ez more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing 1040ez $10,000 or more you cannot contribute to a Roth IRA. Filing 1040ez single, head of household,  or married filing separately and you did not live with your spouse at any time during the year less than $112,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Filing 1040ez at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing 1040ez $127,000 or more you cannot contribute to a Roth IRA. Filing 1040ez Figuring the reduction. Filing 1040ez   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. Filing 1040ez Worksheet 2-2. Filing 1040ez Determining Your Reduced Roth IRA Contribution Limit Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Filing 1040ez If it is, use this worksheet to determine how much it is reduced. Filing 1040ez 1. Filing 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Filing 1040ez   2. Filing 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Filing 1040ez   3. Filing 1040ez Subtract line 2 from line 1 3. Filing 1040ez   4. Filing 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Filing 1040ez   5. Filing 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Filing 1040ez If the result is 1. Filing 1040ez 000 or more, enter 1. Filing 1040ez 000 5. Filing 1040ez   6. Filing 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Filing 1040ez   7. Filing 1040ez Multiply line 5 by line 6 7. Filing 1040ez   8. Filing 1040ez Subtract line 7 from line 6. Filing 1040ez Round the result up to the nearest $10. Filing 1040ez If the result is less than $200, enter $200 8. Filing 1040ez   9. Filing 1040ez Enter contributions for the year to other IRAs 9. Filing 1040ez   10. Filing 1040ez Subtract line 9 from line 6 10. Filing 1040ez   11. Filing 1040ez Enter the lesser of line 8 or line 10. Filing 1040ez This is your reduced Roth IRA contribution limit 11. Filing 1040ez      Round your reduced contribution limit up to the nearest $10. Filing 1040ez If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. Filing 1040ez Example. Filing 1040ez You are a 45-year-old, single individual with taxable compensation of $113,000. Filing 1040ez You want to make the maximum allowable contribution to your Roth IRA for 2013. Filing 1040ez Your modified AGI for 2013 is $113,000. Filing 1040ez You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. Filing 1040ez You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. Filing 1040ez Example—Illustrated, later. Filing 1040ez   Worksheet 2-2. Filing 1040ez Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Filing 1040ez If it is, use this worksheet to determine how much it is reduced. Filing 1040ez 1. Filing 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Filing 1040ez 113,000 2. Filing 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Filing 1040ez 112,000 3. Filing 1040ez Subtract line 2 from line 1 3. Filing 1040ez 1,000 4. Filing 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Filing 1040ez 15,000 5. Filing 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Filing 1040ez If the result is 1. Filing 1040ez 000 or more, enter 1. Filing 1040ez 000 5. Filing 1040ez . Filing 1040ez 067 6. Filing 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Filing 1040ez 5,500 7. Filing 1040ez Multiply line 5 by line 6 7. Filing 1040ez 369 8. Filing 1040ez Subtract line 7 from line 6. Filing 1040ez Round the result up to the nearest $10. Filing 1040ez If the result is less than $200, enter $200 8. Filing 1040ez 5,140 9. Filing 1040ez Enter contributions for the year to other IRAs 9. Filing 1040ez 0 10. Filing 1040ez Subtract line 9 from line 6 10. Filing 1040ez 5,500 11. Filing 1040ez Enter the lesser of line 8 or line 10. Filing 1040ez This is your reduced Roth IRA contribution limit 11. Filing 1040ez 5,140 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). Filing 1040ez You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. Filing 1040ez This means that most people can make contributions for 2013 by April 15, 2014. Filing 1040ez What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. Filing 1040ez Excess contributions. Filing 1040ez   These are the contributions to your Roth IRAs for a year that equal the total of: Amounts contributed for the tax year to your Roth IRAs (other than amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement plan, as described later) that are more than your contribution limit for the year (explained earlier under How Much Can Be Contributed? ), plus Any excess contributions for the preceding year, reduced by the total of: Any distributions out of your Roth IRAs for the year, plus Your contribution limit for the year minus your contributions to all your IRAs for the year. Filing 1040ez Withdrawal of excess contributions. Filing 1040ez   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. Filing 1040ez This treatment only applies if any earnings on the contributions are also withdrawn. Filing 1040ez The earnings are considered earned and received in the year the excess contribution was made. Filing 1040ez   If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still have the contribution returned to you within 6 months of the due date of your 2013 tax return, excluding extensions. Filing 1040ez If you do, file an amended return with “Filed pursuant to section 301. Filing 1040ez 9100-2” written at the top. Filing 1040ez Report any related earnings on the amended return and include an explanation of the withdrawal. Filing 1040ez Make any other necessary changes on the amended return. Filing 1040ez Applying excess contributions. Filing 1040ez    If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Filing 1040ez 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. Filing 1040ez You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. Filing 1040ez You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. Filing 1040ez You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. Filing 1040ez Conversions You can convert a traditional IRA to a Roth IRA. Filing 1040ez The conversion is treated as a rollover, regardless of the conversion method used. Filing 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Filing 1040ez However, the 1-year waiting period does not apply. Filing 1040ez Conversion methods. Filing 1040ez   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. Filing 1040ez Rollover. Filing 1040ez 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. Filing 1040ez Trustee-to-trustee transfer. Filing 1040ez You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. Filing 1040ez Same trustee transfer. Filing 1040ez 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. Filing 1040ez Same trustee. Filing 1040ez   Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issuing a new contract. Filing 1040ez Income. Filing 1040ez   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. Filing 1040ez 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. Filing 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Filing 1040ez See Publication 505, Tax Withholding and Estimated Tax. Filing 1040ez More information. Filing 1040ez   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Filing 1040ez 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). Filing 1040ez Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. Filing 1040ez See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Filing 1040ez Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. Filing 1040ez Rollover methods. Filing 1040ez   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. Filing 1040ez Rollover. Filing 1040ez You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. Filing 1040ez Since the distribution is paid directly to you, the payer generally must withhold 20% of it. Filing 1040ez Direct rollover option. Filing 1040ez 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. Filing 1040ez Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. Filing 1040ez Rollover by nonspouse beneficiary. Filing 1040ez   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 Roth IRA. Filing 1040ez You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. Filing 1040ez   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. Filing 1040ez For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. Filing 1040ez Income. Filing 1040ez   You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. Filing 1040ez You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions (after-tax contributions) to the plan that were taxable to you when paid. Filing 1040ez 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. Filing 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Filing 1040ez See Publication 505, Tax Withholding and Estimated Tax. Filing 1040ez 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. Filing 1040ez 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. Filing 1040ez The contribution is treated as a qualified rollover contribution. Filing 1040ez The amount you can roll over to your Roth IRA cannot exceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. Filing 1040ez Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. Filing 1040ez The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. Filing 1040ez The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Filing 1040ez 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. Filing 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Filing 1040ez However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. Filing 1040ez A rollover from a Roth IRA to an employer retirement plan is not allowed. Filing 1040ez A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. Filing 1040ez If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions does not change. Filing 1040ez The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. Filing 1040ez See What are Qualified Distributions , later. Filing 1040ez Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. Filing 1040ez The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. Filing 1040ez Qualified settlement income that is contributed to a Roth IRA, or to a designated Roth account, will be: Included in your taxable income for the year the qualified settlement income was received, and Treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Filing 1040ez For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. Filing 1040ez Rollover of Airline Payments If you are a qualified airline employee (defined next), you may contribute any portion of an airline payment (defined below) you receive to a Roth IRA. Filing 1040ez The contribution must be made within 180 days from the date you received the payment. Filing 1040ez The contribution will be treated as a qualified rollover contribution. Filing 1040ez The rollover contribution is included in income to the extent it would be included in income if it were not part of the rollover contribution. Filing 1040ez Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can contribute to your Roth IRA. Filing 1040ez Qualified airline employee. Filing 1040ez    A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act of 2006. Filing 1040ez These provisions also apply to surviving spouses of qualified airline employees. Filing 1040ez Airline payment. Filing 1040ez    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. Filing 1040ez The payment also must be made both: Under the approval of an order of federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and In respect of the qualified airline employee’s interest in a bankruptcy claim against the airline carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. Filing 1040ez Any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can roll over to your traditional IRA. Filing 1040ez Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. Filing 1040ez Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). Filing 1040ez You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. Filing 1040ez You may have to include part of other distributions in your income. Filing 1040ez See Ordering Rules for Distributions , later. Filing 1040ez Basis of distributed property. Filing 1040ez   The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution. Filing 1040ez Withdrawals of contributions by due date. Filing 1040ez   If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. Filing 1040ez If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. Filing 1040ez The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions. Filing 1040ez What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. Filing 1040ez It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit). Filing 1040ez Additional Tax on Early Distributions If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs. Filing 1040ez Distributions of conversion and certain rollover contributions within 5-year period. Filing 1040ez   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. Filing 1040ez You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). Filing 1040ez A separate 5-year period applies to each conversion and rollover. Filing 1040ez See Ordering Rules for Distributions , later, to determine the recapture amount, if any. Filing 1040ez   The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. Filing 1040ez See What Are Qualified Distributions , earlier. Filing 1040ez   For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a regular contribution for 2012 on the same date, the 5-year period for the conversion begins January 1, 2013, while the 5-year period for the regular contribution begins on January 1, 2012. Filing 1040ez   Unless one of the exceptions listed later applies, you must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover contribution that you had to include in income because of the conversion or rollover. Filing 1040ez   You must pay the 10% additional tax in the year of the distribution, even if you had included the conversion or rollover contribution in an earlier year. Filing 1040ez You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. Filing 1040ez Other early distributions. Filing 1040ez   Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that are not qualified distributions. Filing 1040ez Exceptions. Filing 1040ez   You may not have to pay the 10% additional tax in the following situations. Filing 1040ez You have reached age 59½. Filing 1040ez You are totally and permanently disabled. Filing 1040ez You are the beneficiary of a deceased IRA owner. Filing 1040ez You use the distribution to buy, build, or rebuild a first home. Filing 1040ez The distributions are part of a series of substantially equal payments. Filing 1040ez You have unreimbursed medical expenses that are more than 10% (or 7. Filing 1040ez 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. Filing 1040ez You are paying medical insurance premiums during a period of unemployment. Filing 1040ez The distributions are not more than your qualified higher education expenses. Filing 1040ez The distribution is due to an IRS levy of the qualified plan. Filing 1040ez The distribution is a qualified reservist distribution. Filing 1040ez Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . Filing 1040ez Please click here for the text description of the image. Filing 1040ez Is Roth Distributions a Qualified Distribution? Ordering Rules for Distributions If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. Filing 1040ez There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA. Filing 1040ez For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). Filing 1040ez Order the distributions as follows. Filing 1040ez Regular contributions. Filing 1040ez Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). Filing 1040ez See Aggregation (grouping and adding) rules, later. Filing 1040ez Take these conversion and rollover contributions into account as follows: Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the Nontaxable portion. Filing 1040ez Earnings on contributions. Filing 1040ez Disregard rollover contributions from other Roth IRAs for this purpose. Filing 1040ez Aggregation (grouping and adding) rules. Filing 1040ez   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. Filing 1040ez Add all distributions from all your Roth IRAs during the year together. Filing 1040ez Add all regular contributions made for the year (including contributions made after the close of the year, but before the due date of your return) together. Filing 1040ez Add this total to the total undistributed regular contributions made in prior years. Filing 1040ez Add all conversion and rollover contributions made during the year together. Filing 1040ez For purposes of the ordering rules, in the case of any conversion or rollover in which the conversion or rollover distribution is made in 2013 and the conversion or rollover contribution is made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or rollover contributions made in 2014. Filing 1040ez Add any recharacterized contributions that end up in a Roth IRA to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Filing 1040ez   Disregard any recharacterized contribution that ends up in an IRA other than a Roth IRA for the purpose of grouping (aggregating) both contributions and distributions. Filing 1040ez Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. Filing 1040ez Example. Filing 1040ez On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. Filing 1040ez His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. Filing 1040ez Justin included $60,000 ($80,000 − $20,000) in his gross income. Filing 1040ez On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. Filing 1040ez On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. Filing 1040ez The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. Filing 1040ez The next $2,000 of the distribution is not includible in income because it was included previously. Filing 1040ez Figuring your recapture amount. Filing 1040ez   If you had an early distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture Amount—Allocation Chart, later. Filing 1040ez Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19   Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Filing 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Filing 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Filing 1040ez Note. Filing 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Filing 1040ez See the Example , earlier. Filing 1040ez Tax Year Your Form 2013 Form 8606, line 20   Form 8606, line 22   1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18   Form 8606, line 17   2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Filing 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Filing 1040ez Amount to include on Form 5329, line 1. Filing 1040ez   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. Filing 1040ez The amount you allocated to line 20 of your 2013 Form 8606. Filing 1040ez The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. Filing 1040ez The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. Filing 1040ez The amount from your 2013 Form 8606, line 25. Filing 1040ez   Also, include any amount you allocated to line 20 of your 2013 Form 8606 on your 2013 Form 5329, line 2, and enter exception number 09. Filing 1040ez Example. Filing 1040ez Ishmael, age 32, opened a Roth IRA in 2000. Filing 1040ez He made the maximum contributions to it every year. Filing 1040ez In addition, he made the following transactions into his Roth IRA. Filing 1040ez In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. Filing 1040ez He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. Filing 1040ez He entered $0 on line 17 of Form 8606 because he took a deduction for all the contributions to the traditional IRA, therefore he has no basis. Filing 1040ez He entered $10,000 on line 18 of Form 8606. Filing 1040ez In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. Filing 1040ez He used a 2011 Form 1040 to file his taxes. Filing 1040ez He entered $20,000 on line 16a of Form 1040 because that was the amount reported in box 1 of his 2011 Form 1099-R. Filing 1040ez Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. Filing 1040ez He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. Filing 1040ez The total balance in his Roth IRA as of January 1, 2013 was $105,000 ($50,000 in contributions from 2000 through 2012 + $10,000 from the 2005 conversion + $20,000 from the 2011 rollover + $25,000 from earnings). Filing 1040ez He has not taken any early distribution from his Roth IRA before 2013. Filing 1040ez In 2013, he made the maximum contribution of $5,500 to his Roth IRA. Filing 1040ez In August of 2013, he took a $85,500 early distribution from his Roth IRA to use as a down payment on the purchase of his first home. Filing 1040ez See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. Filing 1040ez Based on his allocation, he would enter $20,000 on his 2013 Form 5329, line 1 (see Amount to include on Form 5329, line 1 , above). Filing 1040ez He should also report $10,000 on his 2013 Form 5329, line 2, and enter exception 09 since that amount is not subject to the 10% additional tax on early distributions. Filing 1040ez Illustrated Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19 $85,500 Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Filing 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Filing 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Filing 1040ez Note. Filing 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Filing 1040ez See the Example , earlier. Filing 1040ez Tax Year Your Form 2013 Form 8606, line 20 $10,000 Form 8606, line 22 $55,500 1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18 $10,000 Form 8606, line 17 $-0- 2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* $10,000 Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Filing 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Filing 1040ez How Do You Figure the Taxable Part? To figure the taxable part of a distribution that is not a qualified distribution, complete Form 8606, Part III. Filing 1040ez Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. Filing 1040ez The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. Filing 1040ez However, after the death of a Roth IRA owner, certain of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs as explained later under Distributions After Owner's Death . Filing 1040ez Minimum distributions. Filing 1040ez   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. Filing 1040ez Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. Filing 1040ez See Distributions to beneficiaries , later. Filing 1040ez Recognizing Losses on Investments If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less than your unrecovered basis. Filing 1040ez Your basis is the total amount of contributions in your Roth IRAs. Filing 1040ez You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions on Schedule A (Form 1040). Filing 1040ez Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. Filing 1040ez Distributions After Owner's Death If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date. Filing 1040ez See When Can You Withdraw or Use Assets? in chapter 1. Filing 1040ez Distributions to beneficiaries. Filing 1040ez   Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary. Filing 1040ez (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. Filing 1040ez )   If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. Filing 1040ez Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. Filing 1040ez   If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70½ or treat the Roth IRA as his or her own. Filing 1040ez Combining with other Roth IRAs. Filing 1040ez   A beneficiary can combine an inherited Roth IRA with another Roth IRA maintained by the beneficiary only if the beneficiary either: Inherited the other Roth IRA from the same decedent, or Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her own IRA. Filing 1040ez Distributions that are not qualified distributions. Filing 1040ez   If a distribution to a beneficiary is not a qualified distribution, it is generally includible in the beneficiary's gross income in the same manner as it would have been included in the owner's income had it been distributed to the IRA owner when he or she was alive. Filing 1040ez   If the owner of a Roth IRA dies before the end of: The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit, or The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover from a qualified retirement plan to a Roth IRA, each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. Filing 1040ez See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. Filing 1040ez Example. Filing 1040ez When Ms. Filing 1040ez Hibbard died in 2013, her Roth IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and earnings of $2,000. Filing 1040ez No distributions had been made from her IRA. Filing 1040ez She had no basis in the conversion contribution in 2009. Filing 1040ez When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. Filing 1040ez Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. Filing 1040ez An immediate distribution of $4,000 to each child will be treated as $1,000 from regular contributions, $2,500 from conversion contributions, and $500 from earnings. Filing 1040ez In this case, because the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 2013. Filing 1040ez The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner. Filing 1040ez If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise tax for that year on the amount not distributed as required. Filing 1040ez For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. Filing 1040ez If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. Filing 1040ez Prev  Up  Next   Home   More Online Publications