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1040ez Tax Instructions

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1040ez Tax Instructions

1040ez tax instructions 33. 1040ez tax instructions   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). 1040ez tax instructions This chapter explains the following. 1040ez tax instructions Who qualifies for the credit for the elderly or the disabled. 1040ez tax instructions How to claim the credit. 1040ez tax instructions You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. 1040ez tax instructions Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. 1040ez tax instructions You are a qualified individual. 1040ez tax instructions Your income is not more than certain limits. 1040ez tax instructions You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. 1040ez tax instructions Use Figure 33-A first to see if you are a qualified individual. 1040ez tax instructions If you are, go to Table 33-1 to make sure your income is not too high to take the credit. 1040ez tax instructions You can take the credit only if you file Form 1040 or Form 1040A. 1040ez tax instructions You cannot take the credit if you file Form 1040EZ. 1040ez tax instructions Qualified Individual You are a qualified individual for this credit if you are a U. 1040ez tax instructions S. 1040ez tax instructions citizen or resident alien, and either of the following applies. 1040ez tax instructions You were age 65 or older at the end of 2013. 1040ez tax instructions You were under age 65 at the end of 2013 and all three of the following statements are true. 1040ez tax instructions You retired on permanent and total disability (explained later). 1040ez tax instructions You received taxable disability income for 2013. 1040ez tax instructions On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). 1040ez tax instructions Age 65. 1040ez tax instructions   You are considered to be age 65 on the day before your 65th birthday. 1040ez tax instructions Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040ez tax instructions U. 1040ez tax instructions S. 1040ez tax instructions Citizen or Resident Alien You must be a U. 1040ez tax instructions S. 1040ez tax instructions citizen or resident alien (or be treated as a resident alien) to take the credit. 1040ez tax instructions Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. 1040ez tax instructions Exceptions. 1040ez tax instructions   You may be able to take the credit if you are a nonresident alien who is married to a U. 1040ez tax instructions S. 1040ez tax instructions citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. 1040ez tax instructions S. 1040ez tax instructions resident alien. 1040ez tax instructions If you make that choice, both you and your spouse are taxed on your worldwide incomes. 1040ez tax instructions If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. 1040ez tax instructions S. 1040ez tax instructions citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. 1040ez tax instructions S. 1040ez tax instructions resident alien for the entire year. 1040ez tax instructions In that case, you may be allowed to take the credit. 1040ez tax instructions For information on these choices, see chapter 1 of Publication 519, U. 1040ez tax instructions S. 1040ez tax instructions Tax Guide for Aliens. 1040ez tax instructions Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. 1040ez tax instructions However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. 1040ez tax instructions Head of household. 1040ez tax instructions   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. 1040ez tax instructions See Head of Household in chapter 2 for the tests you must meet. 1040ez tax instructions Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). 1040ez tax instructions You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. 1040ez tax instructions Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. 1040ez tax instructions If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. 1040ez tax instructions Permanent and total disability. 1040ez tax instructions    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. 1040ez tax instructions A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. 1040ez tax instructions See Physician's statement , later. 1040ez tax instructions Substantial gainful activity. 1040ez tax instructions   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. 1040ez tax instructions Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. 1040ez tax instructions   Substantial gainful activity is not work you do to take care of yourself or your home. 1040ez tax instructions It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. 1040ez tax instructions However, doing this kind of work may show that you are able to engage in substantial gainful activity. 1040ez tax instructions    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. 1040ez tax instructions Sheltered employment. 1040ez tax instructions   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. 1040ez tax instructions These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. 1040ez tax instructions   Compared to commercial employment, pay is lower for sheltered employment. 1040ez tax instructions Therefore, one usually does not look for sheltered employment if he or she can get other employment. 1040ez tax instructions The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. 1040ez tax instructions Physician's statement. 1040ez tax instructions   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. 1040ez tax instructions You can use the statement in the Instructions for Schedule R. 1040ez tax instructions    Figure 33-A. 1040ez tax instructions Are You a Qualified Individual? This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. 1040ez tax instructions Veterans. 1040ez tax instructions   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. 1040ez tax instructions VA Form 21-0172 must be signed by a person authorized by the VA to do so. 1040ez tax instructions You can get this form from your local VA regional office. 1040ez tax instructions Physician's statement obtained in earlier year. 1040ez tax instructions   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. 1040ez tax instructions For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. 1040ez tax instructions If you meet the required conditions, check the box on your Schedule R, Part II, line 2. 1040ez tax instructions   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. 1040ez tax instructions Table 33-1. 1040ez tax instructions Income Limits IF your filing status is . 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions   Your adjusted gross income (AGI)* is equal to or more than. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. 1040ez tax instructions Disability income. 1040ez tax instructions   If you are under age 65, you must also have taxable disability income to qualify for the credit. 1040ez tax instructions Disability income must meet both of the following requirements. 1040ez tax instructions It must be paid under your employer's accident or health plan or pension plan. 1040ez tax instructions It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. 1040ez tax instructions Payments that are not disability income. 1040ez tax instructions   Any payment you receive from a plan that does not provide for disability retirement is not disability income. 1040ez tax instructions Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. 1040ez tax instructions   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. 1040ez tax instructions Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. 1040ez tax instructions Income Limits To determine if you can claim the credit, you must consider two income limits. 1040ez tax instructions The first limit is the amount of your adjusted gross income (AGI). 1040ez tax instructions The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. 1040ez tax instructions The limits are shown in Table 33-1. 1040ez tax instructions If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. 1040ez tax instructions See How to Claim the Credit , later. 1040ez tax instructions If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. 1040ez tax instructions How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. 1040ez tax instructions Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). 1040ez tax instructions If you want the IRS to figure your tax, see chapter 30. 1040ez tax instructions Form 1040. 1040ez tax instructions   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. 1040ez tax instructions Form 1040A. 1040ez tax instructions   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. 1040ez tax instructions Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. 1040ez tax instructions Next, fill out Schedule R, Part III. 1040ez tax instructions If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. 1040ez tax instructions If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. 1040ez tax instructions For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. 1040ez tax instructions Limit on credit. 1040ez tax instructions   The amount of the credit you can claim is generally limited to the amount of your tax. 1040ez tax instructions Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. 1040ez tax instructions Prev  Up  Next   Home   More Online Publications
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The 1040ez Tax Instructions

1040ez tax instructions 8. 1040ez tax instructions   Distributions and Rollovers Table of Contents DistributionsMinimum Required Distributions No Special 10-Year Tax Option Transfer of Interest in 403(b) ContractAfter-tax contributions. 1040ez tax instructions Permissive service credit. 1040ez tax instructions Tax-Free RolloversHardship exception to rollover rules. 1040ez tax instructions Eligible retirement plans. 1040ez tax instructions Nonqualifying distributions. 1040ez tax instructions Second rollover. 1040ez tax instructions Gift Tax Distributions Permissible distributions. 1040ez tax instructions   Generally, a distribution cannot be made from a 403(b) account until the employee: Reaches age 59½, Has a severance from employment, Dies, Becomes disabled, In the case of elective deferrals, encounters financial hardship, or Has a qualified reservist distribution. 1040ez tax instructions In most cases, the payments you receive or that are made available to you under your 403(b) account are taxable in full as ordinary income. 1040ez tax instructions In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. 1040ez tax instructions These rules are explained in Publication 575. 1040ez tax instructions Publication 575 also discusses the additional tax on early distributions from retirement plans. 1040ez tax instructions Retired public safety officers. 1040ez tax instructions   If you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance, are not included in your taxable income. 1040ez tax instructions The premiums can be for you, your spouse, or your dependents. 1040ez tax instructions   A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew. 1040ez tax instructions   For additional information, see Publication 575. 1040ez tax instructions Distribution for active reservist. 1040ez tax instructions   The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. 1040ez tax instructions A qualified reservist distribution is a distribution that is made: To an individual who is a reservist or national guardsman and who was ordered or called to active duty for a period in excess of 179 days or for an indefinite period; and During the period beginning on the date of the order or call to duty and ending at the close of the active duty period. 1040ez tax instructions Minimum Required Distributions You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 70½, or the calendar year in which you retire. 1040ez tax instructions Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. 1040ez tax instructions If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement. 1040ez tax instructions For each year thereafter, the minimum distribution must be made by the last day of the year. 1040ez tax instructions If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed. 1040ez tax instructions No Special 10-Year Tax Option A distribution from a 403(b) plan does not qualify as a lump-sum distribution. 1040ez tax instructions This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. 1040ez tax instructions For more information, see Publication 575. 1040ez tax instructions Transfer of Interest in 403(b) Contract Contract exchanges. 1040ez tax instructions   If you transfer all or part of your interest from a 403(b) contract to another 403(b) contract (held in the same plan), the transfer is tax free, and is referred to as a contract exchange. 1040ez tax instructions This was previously known as a 90-24 transfer. 1040ez tax instructions A contract exchange is similar to a 90-24 transfer with one major difference. 1040ez tax instructions Previously, you were able to accomplish the transfer without your employer’s involvement. 1040ez tax instructions After September 24, 2007, all such transfers are accomplished through a contract exchange requiring your employer’s involvement. 1040ez tax instructions In addition, the plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution restrictions. 1040ez tax instructions Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange. 1040ez tax instructions   Transfers that do not satisfy this rule are plan distributions and are generally taxable as ordinary income. 1040ez tax instructions Plan-to-plan transfers. 1040ez tax instructions   You may also transfer part or all of your interest from a 403(b) plan to another 403(b) plan if you are an employee of (or were formerly employed by) the employer of the plan to which you would like to transfer. 1040ez tax instructions Both the initial plan and the receiving plan must provide for transfers. 1040ez tax instructions Your accumulated benefit after the transfer must be at least equal to what it was before the transfer. 1040ez tax instructions The new plan’s restrictions on distributions must be the same or stricter than those of the original plan. 1040ez tax instructions Tax-free transfers for certain cash distributions. 1040ez tax instructions   A tax-free transfer may also apply to a cash distribution of your 403(b) account from an insurance company that is subject to a rehabilitation, conservatorship, insolvency, or similar state proceeding. 1040ez tax instructions To receive tax-free treatment, you must do all of the following: Withdraw all the cash to which you are entitled in full settlement of your contract rights or, if less, the maximum permitted by the state. 1040ez tax instructions Reinvest the cash distribution in a single policy or contract issued by another insurance company or in a single custodial account subject to the same or stricter distribution restrictions as the original contract not later than 60 days after you receive the cash distribution. 1040ez tax instructions Assign all future distribution rights to the new contract or account for investment in that contract or account if you received an amount that is less than what you are entitled to because of state restrictions. 1040ez tax instructions   In addition to the preceding requirements, you must provide the new insurer with a written statement containing all of the following information: The gross amount of cash distributed under the old contract. 1040ez tax instructions The amount of cash reinvested in the new contract. 1040ez tax instructions Your investment in the old contract on the date you receive your first cash distribution. 1040ez tax instructions   Also, you must attach the following items to your timely filed income tax return in the year you receive the first distribution of cash. 1040ez tax instructions A copy of the statement you gave the new insurer. 1040ez tax instructions A statement that includes: The words ELECTION UNDER REV. 1040ez tax instructions PROC. 1040ez tax instructions 92-44, The name of the company that issued the new contract, and The new policy number. 1040ez tax instructions Direct trustee-to-trustee transfer. 1040ez tax instructions   If you make a direct trustee-to-trustee transfer, from your governmental 403(b) account to a defined benefit governmental plan, it may not be includible in gross income. 1040ez tax instructions   The transfer amount is not includible in gross income if it is made to: Purchase permissive service credits, or Repay contributions and earnings that were previously refunded under a forfeiture of service credit under the plan, or under another plan maintained by a state or local government employer within the same state. 1040ez tax instructions After-tax contributions. 1040ez tax instructions   For distributions beginning after December 31, 2006, after-tax contributions can be rolled over between a 403(b) plan and a defined benefit plan, IRA, or a defined contribution plan. 1040ez tax instructions If the rollover is to or from a 403(b) plan, it must occur through a direct trustee-to-trustee transfer. 1040ez tax instructions Permissive service credit. 1040ez tax instructions   A permissive service credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that does not exceed the amount necessary to fund the benefit attributable to the period of service and the amount contributed is in addition to the regular employee contribution, if any, under the plan. 1040ez tax instructions   A permissive service credit may also include service credit for up to 5 years where there is no performance of service, or service credited to provide an increased benefit for service credit which a participant is receiving under the plan. 1040ez tax instructions   Check with your plan administrator as to the type and extent of service that may be purchased by this transfer. 1040ez tax instructions Tax-Free Rollovers You can generally roll over tax free all or any part of a distribution from a 403(b) plan to a traditional IRA or a non-Roth eligible retirement plan, except for any nonqualifying distributions, described later. 1040ez tax instructions You may also roll over any part of a distribution from a 403(b) plan by converting it through a direct rollover, described below, to a Roth IRA. 1040ez tax instructions Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. 1040ez tax instructions See Publication 590 for more information about conversion into a Roth IRA. 1040ez tax instructions Note. 1040ez tax instructions A participant is required to roll over distribution amounts received within 60 days in order for the amount to be treated as nontaxable. 1040ez tax instructions Distribution amounts that are rolled over within the 60 days are not subject to the 10% early distribution penalty. 1040ez tax instructions Rollovers to and from 403(b) plans. 1040ez tax instructions   You can generally roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. 1040ez tax instructions Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a direct rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth IRA. 1040ez tax instructions Converted amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. 1040ez tax instructions See Publication 590 for more information on conversion into a Roth IRA. 1040ez tax instructions   If a distribution includes both pre-tax contributions and after-tax contributions, the portion of the distribution that is rolled over is treated as consisting first of pre-tax amounts (contributions and earnings that would be includible in income if no rollover occurred). 1040ez tax instructions This means that if you roll over an amount that is at least as much as the pre-tax portion of the distribution, you do not have to include any of the distribution in income. 1040ez tax instructions   For more information on rollovers and eligible retirement plans, see Publication 575. 1040ez tax instructions If you roll over money or other property from a 403(b) plan to an eligible retirement plan, see Publication 575 for information about possible effects on later distributions from the eligible retirement plan. 1040ez tax instructions Hardship exception to rollover rules. 1040ez tax instructions   The IRS may waive the 60-day rollover period if the failure to waive such requirement would be against equity or good conscience, including cases of casualty, disaster, or other events beyond the reasonable control of an individual. 1040ez tax instructions   To obtain a hardship exception, you must apply to the IRS for a waiver of the 60-day rollover requirement. 1040ez tax instructions You apply for the waiver by following the general instructions used in requesting a letter ruling. 1040ez tax instructions These instructions are stated in Revenue Procedure 2013-4, 2013-1 I. 1040ez tax instructions R. 1040ez tax instructions B. 1040ez tax instructions 126 available at www. 1040ez tax instructions irs. 1040ez tax instructions gov/irb/2013-01_IRB/ar09. 1040ez tax instructions html, or see the latest annual update. 1040ez tax instructions You must also pay a user fee with the application. 1040ez tax instructions The user fee for a rollover that is less than $50,000 is $500. 1040ez tax instructions For rollovers that are $50,000 or more, see Revenue Procedure 2013-8, 2013-1 I. 1040ez tax instructions R. 1040ez tax instructions B. 1040ez tax instructions 237 available at www. 1040ez tax instructions irs. 1040ez tax instructions gov/irb/2013-01_IRB/ar13. 1040ez tax instructions html, or see the latest annual update. 1040ez tax instructions   In determining whether to grant a waiver, the IRS will consider all relevant facts and circumstances, including: Whether errors were made by the financial institution; Whether you were unable to complete the rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; Whether you used the amount distributed (for example, in the case of payment by check, whether you cashed the check); and How much time has passed since the date of distribution. 1040ez tax instructions   For additional information on rollovers, see Publication 590. 1040ez tax instructions Eligible retirement plans. 1040ez tax instructions   The following are considered eligible retirement plans. 1040ez tax instructions Individual retirement arrangements. 1040ez tax instructions Roth IRA. 1040ez tax instructions 403(b) plans. 1040ez tax instructions Government eligible 457 plans. 1040ez tax instructions Qualified retirement plans. 1040ez tax instructions  If the distribution is from a designated Roth account, then the only eligible retirement plan is another designated Roth account or a Roth IRA. 1040ez tax instructions Nonqualifying distributions. 1040ez tax instructions   You cannot roll over tax free: Minimum required distributions (generally required to begin at age 70½), Substantially equal payments over your life or life expectancy, Substantially equal payments over the joint lives or life expectancies of your beneficiary and you, Substantially equal payments for a period of 10 years or more, Hardship distributions, or Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or excess annual additions and any allocable gains. 1040ez tax instructions Rollover of nontaxable amounts. 1040ez tax instructions    You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another eligible retirement plan, traditional IRA, or Roth IRA. 1040ez tax instructions The transfer must be made either through a direct rollover to an eligible plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional IRA or Roth IRA. 1040ez tax instructions   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. 1040ez tax instructions Direct rollovers of 403(b) plan distributions. 1040ez tax instructions   You have the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. 1040ez tax instructions Before you receive a distribution, your plan will give you information on this. 1040ez tax instructions It is generally to your advantage to choose this option because your plan will not withhold tax on the distribution if you choose it. 1040ez tax instructions Distribution received by you. 1040ez tax instructions   If you receive a distribution that qualifies to be rolled over, you can roll over all or any part of the distribution. 1040ez tax instructions Generally, you will receive only 80% of the distribution because 20% must be withheld. 1040ez tax instructions If you roll over only the 80% you receive, you must pay tax on the 20% you did not roll over. 1040ez tax instructions You can replace the 20% that was withheld with other money within the 60-day period to make a 100% rollover. 1040ez tax instructions Voluntary deductible contributions. 1040ez tax instructions   For tax years 1982 through 1986, employees could make deductible contributions to a 403(b) plan under the individual retirement arrangement (IRA) rules instead of deducting contributions to a traditional IRA. 1040ez tax instructions   If you made voluntary deductible contributions to a 403(b) plan under these traditional IRA rules, the distribution of all or part of the accumulated deductible contributions may be rolled over if it otherwise qualifies as a distribution you can roll over. 1040ez tax instructions Accumulated deductible contributions are the deductible contributions: Plus Income allocable to the contributions, Gain allocable to the contributions, and Minus Expenses and losses allocable to the contributions, and Distributions from the contributions, income, or gain. 1040ez tax instructions Excess employer contributions. 1040ez tax instructions   The portion of a distribution from a 403(b) plan transferred to a traditional IRA that was previously included in income as excess employer contributions (discussed earlier) is not an eligible rollover distribution. 1040ez tax instructions   Its transfer does not affect the rollover treatment of the eligible portion of the transferred amounts. 1040ez tax instructions However, the ineligible portion is subject to the traditional IRA contribution limits and may create an excess IRA contribution subject to a 6% excise tax (see chapter 1 of Publication 590). 1040ez tax instructions Qualified domestic relations order. 1040ez tax instructions   You may be able to roll over tax free all or any part of an eligible rollover distribution from a 403(b) plan that you receive under a qualified domestic relations order (QDRO). 1040ez tax instructions If you receive the interest in the 403(b) plan as an employee's spouse or former spouse under a QDRO, all of the rollover rules apply to you as if you were the employee. 1040ez tax instructions You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. 1040ez tax instructions For more information on the treatment of an interest received under a QDRO, see Publication 575. 1040ez tax instructions Spouses of deceased employees. 1040ez tax instructions   If you are the spouse of a deceased employee, you can roll over the qualifying distribution attributable to the employee. 1040ez tax instructions You can make the rollover to any eligible retirement plan. 1040ez tax instructions   After you roll money and other property over from a 403(b) plan to an eligible retirement plan, and you take a distribution from that plan, you will not be eligible to receive the capital gain treatment or the special averaging treatment for the distribution. 1040ez tax instructions Second rollover. 1040ez tax instructions   If you roll over a qualifying distribution to a traditional IRA, you can, if certain conditions are satisfied, later roll the distribution into another 403(b) plan. 1040ez tax instructions For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of Publication 590. 1040ez tax instructions Nonspouse beneficiary. 1040ez tax instructions   A nonspouse beneficiary may make a direct rollover of a distribution from a 403(b) plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. 1040ez tax instructions If the rollover is a direct trustee-to-trustee transfer to an IRA established to receive the distribution: The transfer will be treated as an eligible rollover distribution. 1040ez tax instructions The IRA will be considered an inherited account. 1040ez tax instructions The required minimum distribution rules that apply in instances where the participant dies before the entire interest is distributed will apply to the transferred IRA. 1040ez tax instructions    For more information on IRAs, see Publication 590. 1040ez tax instructions Frozen deposits. 1040ez tax instructions   The 60-day period usually allowed for completing a rollover is extended for any time that the amount distributed is a frozen deposit in a financial institution. 1040ez tax instructions The 60-day period cannot end earlier than 10 days after the deposit ceases to be a frozen deposit. 1040ez tax instructions   A frozen deposit is any deposit that on any day during the 60-day period cannot be withdrawn because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because one or more banks in the state are (or are about to be) bankrupt or insolvent. 1040ez tax instructions Gift Tax If, by choosing or not choosing an election, or option, you provide an annuity for your beneficiary at or after your death, you may have made a taxable gift equal to the value of the annuity. 1040ez tax instructions Joint and survivor annuity. 1040ez tax instructions   If the gift is an interest in a joint and survivor annuity where only you and your spouse have the right to receive payments, the gift will generally be treated as qualifying for the unlimited marital deduction. 1040ez tax instructions More information. 1040ez tax instructions   For information on the gift tax, see Publication 559, Survivors, Executors, and Administrators. 1040ez tax instructions Prev  Up  Next   Home   More Online Publications