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Irs E File Form 4868

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Irs E File Form 4868

Irs e file form 4868 10. Irs e file form 4868   Indoor Tanning Services Tax Table of Contents The tax on indoor tanning service is 10% of the amount paid for that service. Irs e file form 4868 The tax is paid by the person paying for the services and is collected by the person receiving payment for the indoor tanning services. Irs e file form 4868 Definition of indoor tanning services. Irs e file form 4868   Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. Irs e file form 4868 The term does not include phototherapy service performed by, and on the premises of, a licensed medical professional (such as a dermatologist, psychologist, or registered nurse). Irs e file form 4868 See regulations section 49. Irs e file form 4868 5000B-1 for more information, and special rules for qualified physical fitness facilities, undesignated payment cards, and bundled payments. Irs e file form 4868 File Form 720. Irs e file form 4868   The person receiving the payment for indoor tanning services (collector) must collect and remit the tax and file the return. Irs e file form 4868 If the tax is not collected for any reason, the collector is liable for the tax. Irs e file form 4868 The collector is not required to make semimonthly deposits of the tax. Irs e file form 4868 Prev  Up  Next   Home   More Online Publications
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Understanding Your 4883C Letter

This letter tells you that the IRS needs more information to verify your identity in order to process your tax return accurately. The contact information below is only for taxpayers who received Letter 4883C.
 


Why are we contacting you?

We received your federal income tax return; however, we need more information to verify your identity in order to process it. The letter you received provides a toll-free IRS Identity Verification telephone number to call.


This contact information is only for taxpayers who received Letter 4883C. The toll-free number is for identity verification only. No other tax-related information, including refund status, is available.


What should you do?

Please call the toll-free IRS Identity Verification telephone number provided in your letter. You will need to have a copy of your prior year tax return and your most recently filed tax return. The toll-free IRS Identity Verification telephone number is available for you to call even if you haven't filed a tax return for this year.
 


 

Page Last Reviewed or Updated: 21-Mar-2014

The Irs E File Form 4868

Irs e file form 4868 17. Irs e file form 4868   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. Irs e file form 4868  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Irs e file form 4868 If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Irs e file form 4868 For more information, see How Much Can Be Contributed? later. Irs e file form 4868 Roth IRA contribution limit. Irs e file form 4868  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. Irs e file form 4868 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. Irs e file form 4868 However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Irs e file form 4868 For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. Irs e file form 4868 Modified AGI limit for traditional IRA contributions increased. Irs e file form 4868  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irs e file form 4868 If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Irs e file form 4868 If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs e file form 4868 See How Much Can You Deduct , later. Irs e file form 4868 Modified AGI limit for Roth IRA contributions increased. Irs e file form 4868  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Irs e file form 4868 Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Irs e file form 4868 You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Irs e file form 4868 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. Irs e file form 4868 You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Irs e file form 4868 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-. Irs e file form 4868 You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Irs e file form 4868 See Can You Contribute to a Roth IRA , later. Irs e file form 4868 Net Investment Income Tax. Irs e file form 4868   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). Irs e file form 4868 However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irs e file form 4868 Distributions from a nonqualified retirement plan are included in net investment income. Irs e file form 4868 See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. Irs e file form 4868 Name change. Irs e file form 4868  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. Irs e file form 4868 There are no changes to the rules regarding these IRAs. Irs e file form 4868 See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. Irs e file form 4868 Reminders 2014 limits. Irs e file form 4868   You can find information about the 2014 contribution and AGI limits in Publication 590. Irs e file form 4868 Contributions to both traditional and Roth IRAs. Irs e file form 4868   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. Irs e file form 4868 Statement of required minimum distribution. Irs e file form 4868  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. Irs e file form 4868 The report or offer must include the date by which the amount must be distributed. Irs e file form 4868 The report is due January 31 of the year in which the minimum distribution is required. Irs e file form 4868 It can be provided with the year-end fair market value statement that you normally get each year. Irs e file form 4868 No report is required for IRAs of owners who have died. Irs e file form 4868 IRA interest. Irs e file form 4868  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. Irs e file form 4868 Tax on your traditional IRA is generally deferred until you take a distribution. Irs e file form 4868 Do not report this interest on your tax return as tax-exempt interest. Irs e file form 4868 Form 8606. Irs e file form 4868   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. Irs e file form 4868 The term “50 or older” is used several times in this chapter. Irs e file form 4868 It refers to an IRA owner who is age 50 or older by the end of the tax year. Irs e file form 4868 Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. Irs e file form 4868 This chapter discusses the following topics. Irs e file form 4868 The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). Irs e file form 4868 The Roth IRA, which features nondeductible contributions and tax-free distributions. Irs e file form 4868 Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. Irs e file form 4868 For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. Irs e file form 4868 For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. Irs e file form 4868 Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irs e file form 4868 ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irs e file form 4868 Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irs e file form 4868 Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Irs e file form 4868 What is compensation?   Generally, compensation is what you earn from working. Irs e file form 4868 Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. Irs e file form 4868 The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Irs e file form 4868   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. Irs e file form 4868   Compensation also includes commissions and taxable alimony and separate maintenance payments. Irs e file form 4868 Self-employment income. Irs e file form 4868   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 deductible part of your self-employment tax. Irs e file form 4868   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irs e file form 4868 Nontaxable combat pay. Irs e file form 4868   For IRA purposes, if you were a member of the U. Irs e file form 4868 S. Irs e file form 4868 Armed Forces, your compensation includes any nontaxable combat pay you receive. Irs e file form 4868 What is not compensation?   Compensation does not include any of the following items. Irs e file form 4868 Earnings and profits from property, such as rental income, interest income, and dividend income. Irs e file form 4868 Pension or annuity income. Irs e file form 4868 Deferred compensation received (compensation payments postponed from a past year). Irs e file form 4868 Income from a partnership for which you do not provide services that are a material income-producing factor. Irs e file form 4868 Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irs e file form 4868 Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irs e file form 4868 When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irs e file form 4868 However, the time for making contributions for any year is limited. Irs e file form 4868 See When Can Contributions Be Made , later. Irs e file form 4868 You can open different kinds of IRAs with a variety of organizations. Irs e file form 4868 You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irs e file form 4868 You can also open an IRA through your stockbroker. Irs e file form 4868 Any IRA must meet Internal Revenue Code requirements. Irs e file form 4868 Kinds of traditional IRAs. Irs e file form 4868   Your traditional IRA can be an individual retirement account or annuity. Irs e file form 4868 It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irs e file form 4868 How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irs e file form 4868 These limits and other rules are explained below. Irs e file form 4868 Community property laws. Irs e file form 4868   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. Irs e file form 4868 This is the rule even in states with community property laws. Irs e file form 4868 Brokers' commissions. Irs e file form 4868   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irs e file form 4868 Trustees' fees. Irs e file form 4868   Trustees' administrative fees are not subject to the contribution limit. Irs e file form 4868 Qualified reservist repayments. Irs e file form 4868   If you are (or 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 you received. Irs e file form 4868 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. Irs e file form 4868 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 similar arrangement. Irs e file form 4868   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. Irs e file form 4868 Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irs e file form 4868 (See Roth IRAs, later. Irs e file form 4868 ) General limit. Irs e file form 4868   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. Irs e file form 4868 $5,500 ($6,500 if you are 50 or older). Irs e file form 4868 Your taxable compensation (defined earlier) for the year. Irs e file form 4868 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. Irs e file form 4868 (See Nondeductible Contributions , later. Irs e file form 4868 ) Qualified reservist repayments do not affect this limit. Irs e file form 4868 Example 1. Irs e file form 4868 Betty, who is 34 years old and single, earned $24,000 in 2013. Irs e file form 4868 Her IRA contributions for 2013 are limited to $5,500. Irs e file form 4868 Example 2. Irs e file form 4868 John, an unmarried college student working part time, earned $3,500 in 2013. Irs e file form 4868 His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irs e file form 4868 Kay Bailey Hutchison Spousal IRA limit. Irs e file form 4868   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. Irs e file form 4868 $5,500 ($6,500 if you are 50 or older). Irs e file form 4868 The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Irs e file form 4868 Your spouse's IRA contribution for the year to a traditional IRA. Irs e file form 4868 Any contribution for the year to a Roth IRA on behalf of your spouse. Irs e file form 4868 This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). Irs e file form 4868 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). Irs e file form 4868 Contributions must be in the form of money (cash, check, or money order). Irs e file form 4868 Property cannot be contributed. Irs e file form 4868 Contributions must be made by due date. Irs e file form 4868   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. Irs e file form 4868 Age 70½ rule. Irs e file form 4868   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irs e file form 4868   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irs e file form 4868 If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irs e file form 4868 Designating year for which contribution is made. Irs e file form 4868   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. Irs e file form 4868 If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Irs e file form 4868 Filing before a contribution is made. Irs e file form 4868   You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irs e file form 4868 Generally, the contribution must be made by the due date of your return, not including extensions. Irs e file form 4868 Contributions not required. Irs e file form 4868   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irs e file form 4868 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 it applies). Irs e file form 4868 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irs e file form 4868 See Limit If Covered by Employer Plan , later. Irs e file form 4868 You may be able to claim a credit for contributions to your traditional IRA. Irs e file form 4868 For more information, see chapter 37. Irs e file form 4868 Trustees' fees. Irs e file form 4868   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irs e file form 4868 However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irs e file form 4868 See chapter 28. Irs e file form 4868 Brokers' commissions. Irs e file form 4868   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irs e file form 4868 Full deduction. Irs e file form 4868   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 traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). Irs e file form 4868 100% of your compensation. Irs e file form 4868 This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irs e file form 4868 Kay Bailey Hutchison Spousal IRA. Irs e file form 4868   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 the following amounts. Irs e file form 4868 $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). Irs e file form 4868 The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Irs e file form 4868 The IRA deduction for the year of the spouse with the greater compensation. Irs e file form 4868 Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irs e file form 4868 Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irs e file form 4868 This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irs e file form 4868 Note. Irs e file form 4868 If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Irs e file form 4868 After a divorce or legal separation, you can deduct only contributions to your own IRA. Irs e file form 4868 Your deductions are subject to the rules for single individuals. Irs e file form 4868 Covered by an employer retirement plan. Irs e file form 4868   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Irs e file form 4868 This is discussed later under Limit If Covered by Employer Plan . Irs e file form 4868 Limits on the amount you can deduct do not affect the amount that can be contributed. Irs e file form 4868 See Nondeductible Contributions , later. Irs e file form 4868 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. Irs e file form 4868 The “Retirement plan” box should be checked if you were covered. Irs e file form 4868 Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. Irs e file form 4868 If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irs e file form 4868 Federal judges. Irs e file form 4868   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. Irs e file form 4868 For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. Irs e file form 4868 These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irs e file form 4868 Tax year. Irs e file form 4868   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irs e file form 4868 For almost all people, the tax year is the calendar year. Irs e file form 4868 Defined contribution plan. Irs e file form 4868   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. Irs e file form 4868   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irs e file form 4868 Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irs e file form 4868 Defined benefit plan. Irs e file form 4868   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. Irs e file form 4868 This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Irs e file form 4868   A defined benefit plan is any plan that is not a defined contribution plan. Irs e file form 4868 Defined benefit plans include pension plans and annuity plans. Irs e file form 4868 No vested interest. Irs e file form 4868   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. Irs e file form 4868 Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Irs e file form 4868 Social security or railroad retirement. Irs e file form 4868   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irs e file form 4868 Benefits from a previous employer's plan. Irs e file form 4868   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irs e file form 4868 Reservists. Irs e file form 4868   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. Irs e file form 4868 You are not covered by the plan if both of the following conditions are met. Irs e file form 4868 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs e file form 4868 You did not serve more than 90 days on active duty during the year (not counting duty for training). Irs e file form 4868 Volunteer firefighters. Irs e file form 4868   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Irs e file form 4868 You are not covered by the plan if both of the following conditions are met. Irs e file form 4868 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs e file form 4868 Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irs e file form 4868 Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Irs e file form 4868 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. Irs e file form 4868 These amounts vary depending on your filing status. Irs e file form 4868 To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. Irs e file form 4868 See Filing status and Modified adjusted gross income (AGI) , later. Irs e file form 4868 Then use Table 17-1 or 17-2 to determine if the phaseout applies. Irs e file form 4868 Social security recipients. Irs e file form 4868   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. Irs e file form 4868 You received social security benefits. Irs e file form 4868 You received taxable compensation. Irs e file form 4868 Contributions were made to your traditional IRA. Irs e file form 4868 You or your spouse was covered by an employer retirement plan. Irs e file form 4868 Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Irs e file form 4868 Deduction phaseout. Irs e file form 4868   If you were covered by an employer retirement plan and you did not 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 17-1. Irs e file form 4868 Table 17-1. Irs e file form 4868 Effect of Modified AGI1 on Deduction if You Are Covered by 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. Irs e file form 4868 IF your filing status is. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868   AND your modified AGI is. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868   THEN you can take. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868 single   or  head of household   $59,000 or less   a full deduction. Irs e file form 4868   more than $59,000 but less than $69,000   a partial deduction. Irs e file form 4868   $69,000 or more   no deduction. Irs e file form 4868 married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. Irs e file form 4868   more than $95,000 but less than $115,000   a partial deduction. Irs e file form 4868   $115,000 or more   no deduction. Irs e file form 4868 married filing separately2   less than $10,000   a partial deduction. Irs e file form 4868   $10,000 or more   no deduction. Irs e file form 4868 1Modified AGI (adjusted gross income). Irs e file form 4868 See Modified adjusted gross income (AGI) . Irs e file form 4868 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). Irs e file form 4868 If your spouse is covered. Irs e file form 4868   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. Irs e file form 4868 Filing status. Irs e file form 4868   Your filing status depends primarily on your marital status. Irs e file form 4868 For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Irs e file form 4868 If you need more information on filing status, see chapter 2. Irs e file form 4868 Lived apart from spouse. Irs e file form 4868   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Irs e file form 4868 Table 17-2. Irs e file form 4868 Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irs e file form 4868 IF your filing status is. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868   AND your modified AGI is. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868   THEN you can take. Irs e file form 4868 . Irs e file form 4868 . Irs e file form 4868 single, head of household, or qualifying widow(er)   any amount   a full deduction. Irs e file form 4868 married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. Irs e file form 4868 married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. Irs e file form 4868   more than $178,000 but less than $188,000   a partial deduction. Irs e file form 4868   $188,000 or more   no deduction. Irs e file form 4868 married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. Irs e file form 4868   $10,000 or more   no deduction. Irs e file form 4868 1Modified AGI (adjusted gross income). Irs e file form 4868 See Modified adjusted gross income (AGI) . Irs e file form 4868 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irs e file form 4868 Modified adjusted gross income (AGI). Irs e file form 4868   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. Irs e file form 4868 If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. Irs e file form 4868 You may be able to use Worksheet 17-1 to figure your modified AGI. Irs e file form 4868    Do not assume that your modified AGI is the same as your compensation. Irs e file form 4868 Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. Irs e file form 4868 Form 1040. Irs e file form 4868   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. Irs e file form 4868 IRA deduction. Irs e file form 4868 Student loan interest deduction. Irs e file form 4868 Tuition and fees deduction. Irs e file form 4868 Domestic production activities deduction. Irs e file form 4868 Foreign earned income exclusion. Irs e file form 4868 Foreign housing exclusion or deduction. Irs e file form 4868 Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. Irs e file form 4868 S. Irs e file form 4868 Savings Bonds Issued After 1989. Irs e file form 4868 Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. Irs e file form 4868 This is your modified AGI. Irs e file form 4868 Form 1040A. Irs e file form 4868   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irs e file form 4868 IRA deduction. Irs e file form 4868 Student loan interest deduction. Irs e file form 4868 Tuition and fees deduction. Irs e file form 4868 Exclusion of qualified savings bond interest shown on Form 8815. Irs e file form 4868 This is your modified AGI. Irs e file form 4868 Both contributions for 2013 and distributions in 2013. Irs e file form 4868   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irs e file form 4868 You received distributions in 2013 from one or more traditional IRAs. Irs e file form 4868 You made contributions to a traditional IRA for 2013. Irs e file form 4868 Some of those contributions may be nondeductible contributions. Irs e file form 4868 If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irs e file form 4868 To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. Irs e file form 4868   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. Irs e file form 4868    How to figure your reduced IRA deduction. Irs e file form 4868   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. Irs e file form 4868 Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. Irs e file form 4868 Worksheet 17-1. Irs e file form 4868 Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. Irs e file form 4868 1. Irs e file form 4868 Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. Irs e file form 4868   2. Irs e file form 4868 Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. Irs e file form 4868   3. Irs e file form 4868 Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irs e file form 4868   4. Irs e file form 4868 Enter any domestic production activities deduction from Form 1040, line 35 4. Irs e file form 4868   5. Irs e file form 4868 Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irs e file form 4868   6. Irs e file form 4868 Enter any foreign housing deduction from Form 2555, line 50 6. Irs e file form 4868   7. Irs e file form 4868 Enter any excludable savings bond interest from Form 8815, line 14 7. Irs e file form 4868   8. Irs e file form 4868 Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irs e file form 4868   9. Irs e file form 4868 Add lines 1 through 8. Irs e file form 4868 This is your Modified AGI for traditional IRA purposes 9. Irs e file form 4868   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irs e file form 4868 If you file Form 1040A, enter your IRA deduction on line 17. Irs e file form 4868 You cannot deduct IRA contributions on Form 1040EZ. Irs e file form 4868 Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Irs e file form 4868 The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irs e file form 4868 Example. Irs e file form 4868 Mike is 28 years old and single. Irs e file form 4868 In 2013, he was covered by a retirement plan at work. Irs e file form 4868 His salary was $57,312. Irs e file form 4868 His modified AGI was $70,000. Irs e file form 4868 Mike made a $5,500 IRA contribution for 2013. Irs e file form 4868 Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. Irs e file form 4868 He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. Irs e file form 4868 Form 8606. Irs e file form 4868   To designate contributions as nondeductible, you must file Form 8606. Irs e file form 4868   You do not have to designate a contribution as nondeductible until you file your tax return. Irs e file form 4868 When you file, you can even designate otherwise deductible contributions as nondeductible. Irs e file form 4868   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irs e file form 4868 A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Irs e file form 4868 In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irs e file form 4868 See Form 8606 under Distributions Fully or Partly Taxable, later. Irs e file form 4868 Failure to report nondeductible contributions. Irs e file form 4868   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. Irs e file form 4868 All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs e file form 4868 Penalty for overstatement. Irs e file form 4868   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. Irs e file form 4868 Penalty for failure to file Form 8606. Irs e file form 4868   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Irs e file form 4868    Tax on earnings on nondeductible contributions. Irs e file form 4868   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. Irs e file form 4868 See When Can You Withdraw or Use IRA Assets , later. Irs e file form 4868 Cost basis. Irs e file form 4868   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irs e file form 4868 Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irs e file form 4868 Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. Irs e file form 4868 A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irs e file form 4868 Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irs e file form 4868 Inherited from spouse. Irs e file form 4868   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irs e file form 4868 You can: Treat it as your own IRA by designating yourself as the account owner. Irs e file form 4868 Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). Irs e file form 4868 Treat yourself as the beneficiary rather than treating the IRA as your own. Irs e file form 4868 Treating it as your own. Irs e file form 4868   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. Irs e file form 4868 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. Irs e file form 4868   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. Irs e file form 4868 Inherited from someone other than spouse. Irs e file form 4868   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. Irs e file form 4868 This means that you cannot make any contributions to the IRA. Irs e file form 4868 It also means you cannot roll over any amounts into or out of the inherited IRA. Irs e file form 4868 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. Irs e file form 4868 For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. Irs e file form 4868 Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. Irs e file form 4868 You can make the following kinds of transfers. Irs e file form 4868 Transfers from one trustee to another. Irs e file form 4868 Rollovers. Irs e file form 4868 Transfers incident to a divorce. Irs e file form 4868 Transfers to Roth IRAs. Irs e file form 4868   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. Irs e file form 4868 You can also move assets from a qualified retirement plan to a Roth IRA. Irs e file form 4868 See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. Irs e file form 4868 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, is not a rollover. Irs e file form 4868 Because there is no distribution to you, the transfer is tax free. Irs e file form 4868 Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . Irs e file form 4868 For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. Irs e file form 4868 Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. Irs e file form 4868 The contribution to the second retirement plan is called a “rollover contribution. Irs e file form 4868 ” Note. Irs e file form 4868 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. Irs e file form 4868 Kinds of rollovers to a traditional IRA. Irs e file form 4868   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). Irs e file form 4868 Treatment of rollovers. Irs e file form 4868   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . Irs e file form 4868 Kinds of rollovers from a traditional IRA. Irs e file form 4868   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. Irs e file form 4868 These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). Irs e file form 4868 The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Irs e file form 4868 Qualified plans may, but are not required to, accept such rollovers. Irs e file form 4868 Time limit for making a rollover contribution. Irs e file form 4868   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Irs e file form 4868 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. Irs e file form 4868 For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 Extension of rollover period. Irs e file form 4868   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, special rules extend the rollover period. Irs e file form 4868 For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 More information. Irs e file form 4868   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 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. Irs e file form 4868 Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. Irs e file form 4868 Waiting period between rollovers. Irs e file form 4868   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. Irs e file form 4868 You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. Irs e file form 4868   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Irs e file form 4868 Example. Irs e file form 4868 You have two traditional IRAs, IRA-1 and IRA-2. Irs e file form 4868 You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). Irs e file form 4868 You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. Irs e file form 4868 However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. Irs e file form 4868 This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. Irs e file form 4868 Exception. Irs e file form 4868   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 Partial rollovers. Irs e file form 4868   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. Irs e file form 4868 The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). Irs e file form 4868 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? . Irs e file form 4868 Required distributions. Irs e file form 4868   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. Irs e file form 4868 Inherited IRAs. Irs e file form 4868   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. Irs e file form 4868 See Treating it as your own , earlier. Irs e file form 4868 Not inherited from spouse. Irs e file form 4868   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. Irs e file form 4868 You must withdraw the IRA assets within a certain period. Irs e file form 4868 For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Irs e file form 4868 Reporting rollovers from IRAs. Irs e file form 4868   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. Irs e file form 4868   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. Irs e file form 4868 If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. Irs e file form 4868 If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. Irs e file form 4868 Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. Irs e file form 4868 See your tax return instructions. Irs e file form 4868   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. Irs e file form 4868 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). Irs e file form 4868 A qualified plan is one that meets the requirements of the Internal Revenue Code. Irs e file form 4868 Eligible rollover distribution. Irs e file form 4868   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. Irs e file form 4868 A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). Irs e file form 4868 A hardship distribution. Irs e file form 4868 Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. Irs e file form 4868 Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. Irs e file form 4868 A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. Irs e file form 4868 Dividends on employer securities. Irs e file form 4868 The cost of life insurance coverage. Irs e file form 4868 Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. Irs e file form 4868 To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. Irs e file form 4868 See Form 8606 under Distributions Fully or Partly Taxable, later. Irs e file form 4868 Rollover by nonspouse beneficiary. Irs e file form 4868   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. Irs e file form 4868 The IRA is treated as an inherited IRA. Irs e file form 4868 For more information about inherited IRAs, see Inherited IRAs , earlier. Irs e file form 4868 Reporting rollovers from employer plans. Irs e file form 4868    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. Irs e file form 4868 This amount should be shown in box 1 of Form 1099-R. Irs e file form 4868 From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. Irs e file form 4868 From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. Irs e file form 4868 Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. Irs e file form 4868 Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. Irs e file form 4868 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. Irs e file form 4868 The transfer is tax free. Irs e file form 4868 For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 Converting From Any Traditional IRA to a Roth IRA Allowable conversions. Irs e file form 4868   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. Irs e file form 4868 The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. Irs e file form 4868 If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. Irs e file form 4868 However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. Irs e file form 4868 Required distributions. Irs e file form 4868   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). Irs e file form 4868 Income. Irs e file form 4868   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. Irs e file form 4868 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. Irs e file form 4868   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. Irs e file form 4868   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. Irs e file form 4868   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Irs e file form 4868 See chapter 4. Irs e file form 4868 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. Irs e file form 4868 This is called recharacterizing the contribution. Irs e file form 4868 See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. Irs e file form 4868 How to recharacterize a contribution. Irs e file form 4868   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. Irs e file form 4868 If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. Irs e file form 4868 If you recharacterize your contribution, you must do all three of the following. Irs e file form 4868 Include in the transfer any net income allocable to the contribution. Irs e file form 4868 If there was a loss, the net income you must transfer may be a negative amount. Irs e file form 4868 Report the recharacterization on your tax return for the year during which the contribution was made. Irs e file form 4868 Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. Irs e file form 4868 No deduction allowed. Irs e file form 4868   You cannot deduct the contribution to the first IRA. Irs e file form 4868 Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. Irs e file form 4868 Required notifications. Irs e file form 4868   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. Irs e file form 4868 You must make the notifications by the date of the transfer. Irs e file form 4868 Only one notification is required if both IRAs are maintained by the same trustee. Irs e file form 4868 The notification(s) must include all of the following information. Irs e file form 4868 The type and amount of the contribution to the first IRA that is to be recharacterized. Irs e file form 4868 The date on which the contribution was made to the first IRA and the year for which it was made. Irs e file form 4868 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. Irs e file form 4868 The name of the trustee of the first IRA and the name of the trustee of the second IRA. Irs e file form 4868 Any additional information needed to make the transfer. Irs e file form 4868 Reporting a recharacterization. Irs e file form 4868   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. Irs e file form 4868 You must treat the contribution as having been made to the second IRA. Irs e file form 4868 When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. Irs e file form 4868 Violation of the rules generally results in additional taxes in the year of violation. Irs e file form 4868 See What Acts Result in Penalties or Additional Taxes , later. Irs e file form 4868 Contributions returned before the due date of return. Irs e file form 4868   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. Irs e file form 4868 If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. Irs e file form 4868 You can do this if, for each contribution you withdraw, both of the following conditions apply. Irs e file form 4868 You did not take a deduction for the contribution. Irs e file form 4868 You withdraw any interest or other income earned on the contribution. Irs e file form 4868 You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Irs e file form 4868 If there was a loss, the net income earned on the contribution may be a negative amount. Irs e file form 4868 Note. Irs e file form 4868 To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. Irs e file form 4868 Earnings includible in income. Irs e file form 4868   You must include in income any earnings on the contributions you withdraw. Irs e file form 4868 Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. Irs e file form 4868 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. Irs e file form 4868 Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. Irs e file form 4868    Early distributions tax. Irs e file form 4868   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. Irs e file form 4868 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 59½ rule, it will be subject to this tax. Irs e file form 4868 When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. Irs e file form 4868 Eventually they must be distributed. Irs e file form 4868 If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. Irs e file form 4868 See Excess Accumulations (Insufficient Distributions) , later. Irs e file form 4868 The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. Irs e file form 4868 Required minimum distribution. Irs e file form 4868   The amount that must be distributed each year is referred to as the required minimum distribution. Irs e file form 4868 Required distributions not eligible for rollover. Irs e file form 4868   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. Irs e file form 4868 IRA owners. Irs e file form 4868   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Irs e file form 4868 April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. Irs e file form 4868 Distributions by the required beginning date. Irs e file form 4868   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). Irs e file form 4868 If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. Irs e file form 4868   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. Irs e file form 4868 Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. Irs e file form 4868 Distributions after the required beginning date. Irs e file form 4868   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. Irs e file form 4868    Beneficiaries. Irs e file form 4868   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. Irs e file form 4868 More information. Irs e file form 4868   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Irs e file form 4868 Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. Irs e file form 4868 Exceptions. Irs e file form 4868   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . Irs e file form 4868    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. Irs e file form 4868 Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs e file form 4868 Qualified charitable distributions (QCD). Irs e file form 4868   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. Irs e file form 4868 Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. Irs e file form 4868 See Qualified Charitable Distributions in Publication 590 for more information. Irs e file form 4868 Ordinary income. Irs e file form 4868   Distributions from traditional IRAs that you include in income are taxed as ordinary income. Irs e file form 4868 No special treatment. Irs e file form 4868   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Irs e file form 4868 Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. Irs e file form 4868 Fully taxable. Irs e file form 4868   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. Irs e file form 4868 Because you have no basis in your IRA, any distributions are fully taxable when received. Irs e file form 4868 See Reporting taxable distributions on your return , later. Irs e file form 4868 Partly taxable. Irs e file form 4868    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. Irs e file form 4868 These nondeductible contributions are not taxed when they are distributed to you. Irs e file form 4868 They are a return of your investment in your IRA. Irs e file form 4868   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. Irs e file form 4868 If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Irs e file form 4868 Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. Irs e file form 4868 Form 8606. Irs e file form 4868   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Irs e file form 4868 Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. Irs e file form 4868 Note. Irs e file form 4868 If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. Irs e file form 4868 Send it to the IRS at the time and place you would otherwise file an income tax return. Irs e file form 4868 Distributions reported on Form 1099-R. Irs e file form 4868   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Irs e file form 4868 , or a similar statement. Irs e file form 4868 IRA distributions are shown in boxes 1 and 2a of Form 1099-R. Irs e file form 4868 A number or letter code in box 7 tells you what type of distribution you received from your IRA. Irs e file form 4868 Withholding. Irs e file form 4868   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. Irs e file form 4868 See chapter 4. Irs e file form 4868 IRA distributions delivered outside the United States. Irs e file form 4868   In general, if you are a U. Irs e file form 4868 S. Irs e file form 4868 citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. Irs e file form 4868 Reporting taxable distributions on your return. Irs e file form 4868    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). Irs e file form 4868 If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. Irs e file form 4868 You cannot report distributions on Form 1040EZ. Irs e file form 4868 What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. Irs e file form 4868 There are additions to the regular tax for using your IRA funds in prohibited transactions. Irs e file form 4868 There are also additional taxes for the following activities. Irs e file form 4868 Investing in collectibles. Irs e file form 4868 Making excess contributions. Irs e file form 4868 Taking early distributions. Irs e file form 4868 Allowing excess amounts to accumulate (failing to take required distributions). Irs e file form 4868 There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. Irs e file form 4868 Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. Irs e file form 4868 Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). Irs e file form 4868 The following are examples of prohibited transactions with a traditional IRA. Irs e file form 4868 Borrowing money from it. Irs e file form 4868 Selling property to it. Irs e file form 4868 Receiving unreasonable compensation for managing it. Irs e file form 4868 Using it as security for a loan. Irs e file form 4868 Buying property for personal use (present or future) with IRA funds. Irs e file form 4868 Effect on an IRA account. Irs e file form 4868   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. Irs e file form 4868 Effect on you or your beneficiary. Irs e file form 4868   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. Irs e file form 4868 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. Irs e file form 4868 For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. Irs e file form 4868 The distribution may be subject to additional taxes or penalties. Irs e file form 4868 Taxes on prohibited transactions. Irs e file form 4868   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. Irs e file form 4868 In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. Irs e file form 4868 More information. Irs e file form 4868   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. Irs e file form 4868 Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. Irs e file form 4868 You may have to pay the 10% additional tax on early distributions, discussed later. Irs e file form 4868 Collectibles. Irs e file form 4868   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. Irs e file form 4868 Exception. Irs e file form 4868    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. Irs e file form 4868 S. Irs e file form 4868 gold coins, or one-ounce silver coins minted by the Treasury Department. Irs e file form 4868 It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. Irs e file form 4868 Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. Irs e file form 4868 For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. Irs e file form 4868 Tax on excess contributions. Irs e file form 4868   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. Irs e file form 4868 You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. Irs e file form 4868 The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. Irs e file form 4868 Excess contributions withdrawn by due date of return. Irs e file form 4868   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. Irs e file form 4868 You must complete your withdrawal by the date your tax return for that year is due, including extensions. Irs e file form 4868 How to treat withdrawn contributions. Irs e file form 4868   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. Irs e file form 4868 No deduction was allowed for the excess contribution. Irs e file form 4868 You withdraw the interest or other income earned on the excess contribution. Irs e file form 4868 You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Irs e file form 4868 If there was a loss, the net income you must withdraw may be a negative amount. Irs e file form 4868 How to treat withdrawn interest or other income. Irs e file form 4868   You must include in your gross income the interest or other income that was earned on the excess contribution. Irs e file form 4868 Report it on your return for the year in which the excess contribution was made. Irs e file form 4868 Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus