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2011 1040a Tax Forms

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2011 1040a Tax Forms

2011 1040a tax forms Publication 901 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2011 1040a tax forms How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 2011 1040a tax forms By selecting the method that is best for you, you will have quick and easy access to tax help. 2011 1040a tax forms Free help with your tax return. 2011 1040a tax forms   Free help in preparing your return is available nationwide from IRS-certified volunteers. 2011 1040a tax forms The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. 2011 1040a tax forms The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2011 1040a tax forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2011 1040a tax forms Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 2011 1040a tax forms To find the nearest VITA or TCE site, visit IRS. 2011 1040a tax forms gov or call 1-800-906-9887 or 1-800-829-1040. 2011 1040a tax forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2011 1040a tax forms To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2011 1040a tax forms aarp. 2011 1040a tax forms org/money/taxaide or call 1-888-227-7669. 2011 1040a tax forms   For more information on these programs, go to IRS. 2011 1040a tax forms gov and enter “VITA” in the search box. 2011 1040a tax forms Internet. 2011 1040a tax forms You can access the IRS website at IRS. 2011 1040a tax forms gov 24 hours a day, 7 days a week to: E-file your return. 2011 1040a tax forms Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 2011 1040a tax forms Check the status of your 2012 refund. 2011 1040a tax forms Go to IRS. 2011 1040a tax forms gov and click on Where’s My Refund. 2011 1040a tax forms Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2011 1040a tax forms If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2011 1040a tax forms Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 1040a tax forms Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. 2011 1040a tax forms Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 1040a tax forms So in a change from previous filing seasons, you won't get an estimated refund date right away. 2011 1040a tax forms Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2011 1040a tax forms You can obtain a free transcript online at IRS. 2011 1040a tax forms gov by clicking on Order a Return or Account Transcript under “Tools. 2011 1040a tax forms ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. 2011 1040a tax forms You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. 2011 1040a tax forms Download forms, including talking tax forms, instructions, and publications. 2011 1040a tax forms Order IRS products. 2011 1040a tax forms Research your tax questions. 2011 1040a tax forms Search publications by topic or keyword. 2011 1040a tax forms Use the Internal Revenue Code, regulations, or other official guidance. 2011 1040a tax forms View Internal Revenue Bulletins (IRBs) published in the last few years. 2011 1040a tax forms Figure your withholding allowances using the IRS Withholding Calculator at www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/individuals. 2011 1040a tax forms Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. 2011 1040a tax forms gov by typing Alternative Minimum Tax Assistant in the search box. 2011 1040a tax forms Sign up to receive local and national tax news by email. 2011 1040a tax forms Get information on starting and operating a small business. 2011 1040a tax forms Phone. 2011 1040a tax forms Many services are available by phone. 2011 1040a tax forms   Ordering forms, instructions, and publications. 2011 1040a tax forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). 2011 1040a tax forms You should receive your order within 10 days. 2011 1040a tax forms Asking tax questions. 2011 1040a tax forms Call the IRS with your tax questions at 1-800-829-1040. 2011 1040a tax forms Solving problems. 2011 1040a tax forms You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). 2011 1040a tax forms An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 2011 1040a tax forms Call your local Taxpayer Assistance Center for an appointment. 2011 1040a tax forms To find the number, go to www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2011 1040a tax forms TTY/TDD equipment. 2011 1040a tax forms If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 2011 1040a tax forms The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. 2011 1040a tax forms These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2011 1040a tax forms gsa. 2011 1040a tax forms gov/fedrelay. 2011 1040a tax forms TeleTax topics. 2011 1040a tax forms Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 2011 1040a tax forms Checking the status of your 2012 refund. 2011 1040a tax forms To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). 2011 1040a tax forms Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2011 1040a tax forms If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2011 1040a tax forms Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 1040a tax forms Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 1040a tax forms Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2011 1040a tax forms Evaluating the quality of our telephone services. 2011 1040a tax forms To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 2011 1040a tax forms One method is for a second IRS representative to listen in on or record random telephone calls. 2011 1040a tax forms Another is to ask some callers to complete a short survey at the end of the call. 2011 1040a tax forms Walk-in. 2011 1040a tax forms Some products and services are available on a walk-in basis. 2011 1040a tax forms   Products. 2011 1040a tax forms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2011 1040a tax forms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2011 1040a tax forms Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 2011 1040a tax forms Services. 2011 1040a tax forms You can walk in to your local TAC most business days for personal, face-to-face tax help. 2011 1040a tax forms An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2011 1040a tax forms If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 2011 1040a tax forms No appointment is necessary—just walk in. 2011 1040a tax forms Before visiting, check www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/localcontacts for hours of operation and services provided. 2011 1040a tax forms If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. 2011 1040a tax forms You can leave a message and a representative will call you back within 2 business days. 2011 1040a tax forms All other issues will be handled without an appointment. 2011 1040a tax forms To call your local TAC, go to  www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2011 1040a tax forms Mail. 2011 1040a tax forms You can send your order for forms, instructions, and publications to the address below. 2011 1040a tax forms You should receive a response within 10 days after your request is received. 2011 1040a tax forms  Internal Revenue Service 1201 N. 2011 1040a tax forms Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. 2011 1040a tax forms   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2011 1040a tax forms Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 2011 1040a tax forms TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. 2011 1040a tax forms Remember, the worst thing you can do is nothing at all. 2011 1040a tax forms   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. 2011 1040a tax forms You face (or your business is facing) an immediate threat of adverse action. 2011 1040a tax forms You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. 2011 1040a tax forms   If you qualify for help, they will do everything they can to get your problem resolved. 2011 1040a tax forms You will be assigned to one advocate who will be with you at every turn. 2011 1040a tax forms TAS has offices in every state, the District of Columbia, and Puerto Rico. 2011 1040a tax forms Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. 2011 1040a tax forms And its services are always free. 2011 1040a tax forms   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 2011 1040a tax forms The TAS tax toolkit at www. 2011 1040a tax forms TaxpayerAdvocate. 2011 1040a tax forms irs. 2011 1040a tax forms gov can help you understand these rights. 2011 1040a tax forms   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/advocate. 2011 1040a tax forms You can also call the toll-free number at 1-877-777-4778. 2011 1040a tax forms Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. 2011 1040a tax forms These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2011 1040a tax forms gsa. 2011 1040a tax forms gov/fedrelay. 2011 1040a tax forms   TAS also handles large-scale or systemic problems that affect many taxpayers. 2011 1040a tax forms If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/advocate. 2011 1040a tax forms Low Income Taxpayer Clinics (LITCs). 2011 1040a tax forms   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 2011 1040a tax forms Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 2011 1040a tax forms These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. 2011 1040a tax forms Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 2011 1040a tax forms For more information and to find a clinic near you, see the LITC page on www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 2011 1040a tax forms This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. 2011 1040a tax forms Free tax services. 2011 1040a tax forms   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 2011 1040a tax forms Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 2011 1040a tax forms The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 2011 1040a tax forms The majority of the information and services listed in this publication are available to you free of charge. 2011 1040a tax forms If there is a fee associated with a resource or service, it is listed in the publication. 2011 1040a tax forms   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 2011 1040a tax forms DVD for tax products. 2011 1040a tax forms You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 2011 1040a tax forms Prior-year forms, instructions, and publications. 2011 1040a tax forms Tax Map: an electronic research tool and finding aid. 2011 1040a tax forms Tax law frequently asked questions. 2011 1040a tax forms Tax Topics from the IRS telephone response system. 2011 1040a tax forms Internal Revenue Code—Title 26 of the U. 2011 1040a tax forms S. 2011 1040a tax forms Code. 2011 1040a tax forms Links to other Internet-based tax research materials. 2011 1040a tax forms Fill-in, print, and save features for most tax forms. 2011 1040a tax forms Internal Revenue Bulletins. 2011 1040a tax forms Toll-free and email technical support. 2011 1040a tax forms Two releases during the year. 2011 1040a tax forms  – The first release will ship the beginning of January 2013. 2011 1040a tax forms  – The final release will ship the beginning of March 2013. 2011 1040a tax forms Purchase the DVD from National Technical Information Service (NTIS) at www. 2011 1040a tax forms irs. 2011 1040a tax forms gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). 2011 1040a tax forms Prev  Up  Next   Home   More Online Publications
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Affordable Care Act Tax Provisions News Archive

Health Care Tax Tips
Feb. 25, 2014 - New Health Care Tax Tips help people learn what they need to know about the Affordable Care Act for filing tax returns this year and in the future. You can view them on IRS.gov or subscribe for automatic email updates.

Employer Shared Responsibility
Feb. 10, 2014 - Final rules answer questions about compliance; ensure volunteers do not count as full-time employees; and phases in provisions for employers with 50-99 full-time employees and those who offer coverage to most but not all full-time workers.

Reporting Employer-Provided Health Coverage on Form W-2
Jan. 27, 2014 - Employers may need to report employer-sponsored health care coverage amounts on W-2 forms being issued this January 2014. Individuals do not have to pay taxes on these coverage amounts and should not report it as income.

IRS Notices address reliance and correction procedures for Tax Exempt Hospitals
Jan. 23, 2014 - Notices 2014-2 and 2014-3 provide the most recent guidance for Tax Exempt Hospitals under section 501(r) of the Internal Revenue Code.

Premium Tax Credit electronic flyer (IRS Publication 5120) released
Jan. 10, 2013 - If you get your health insurance coverage through the Health Insurance Marketplace, you may be eligible for the Premium Tax Credit. This tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes.

Medical Loss Ratio section 833 final regulations issued
Jan. 6, 2014 - IRS issued final regulations on January 6, 2014 that describe how the Medical Loss Ratio for purposes of section 833 is computed.

Health Insurance Marketplace Opens – find out more
Oct. 1, 2013 - The Marketplace is where you can find health insurance coverage options and enroll in the coverage that fits your budget and meets your needs.

You may be eligible for the Premium Tax Credit
Oct. 1, 2013 - Starting in 2014, if you get your health insurance coverage through the Health Insurance Marketplace, you may be eligible for the Premium Tax Credit.

Research trust fund fees due July 31 from health insurers and plan sponsors
July 19, 2013 – The new Patient-Centered Outcomes Research Trust Fund fees are due July 31, 2013 from health insurers and plan sponsors of self-insured plans. The fee is paid annually using Form 720, Quarterly Federal Excise Tax Return. The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select Q2 for the Quarter under Tax Period on the "Business Tax Payment" page).

Healthcare Online Resource electronic flyer (IRS Publication 5093) released (pdf)
July 12, 2013 – Guide to federal web sites with health care information for Individuals, Families and Employers.

2014 Transition Relief for Information Reporting and Employer Shared Responsibility Payments announced – provisions optional for 2014 and mandatory for 2015 (Notice 2013-45)
July 11, 2013 - Transition Relief for 2014 Under § 6055 (Information Reporting for Insurers, Self-Insuring Employers and Other Providers), § 6056 (Information Reporting for Applicable Large Employers) and § 4980H (Employer Shared Responsibility Provisions).

Page Last Reviewed or Updated: 25-Mar-2014

 

The 2011 1040a Tax Forms

2011 1040a tax forms 17. 2011 1040a tax forms   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. 2011 1040a tax forms  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. 2011 1040a tax forms 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. 2011 1040a tax forms For more information, see How Much Can Be Contributed? later. 2011 1040a tax forms Roth IRA contribution limit. 2011 1040a tax forms  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. 2011 1040a tax forms 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. 2011 1040a tax forms However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. 2011 1040a tax forms For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. 2011 1040a tax forms Modified AGI limit for traditional IRA contributions increased. 2011 1040a tax forms  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. 2011 1040a tax forms 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. 2011 1040a tax forms If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. 2011 1040a tax forms See How Much Can You Deduct , later. 2011 1040a tax forms Modified AGI limit for Roth IRA contributions increased. 2011 1040a tax forms  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. 2011 1040a tax forms Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. 2011 1040a tax forms You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. 2011 1040a tax forms 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. 2011 1040a tax forms You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. 2011 1040a tax forms 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-. 2011 1040a tax forms You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. 2011 1040a tax forms See Can You Contribute to a Roth IRA , later. 2011 1040a tax forms Net Investment Income Tax. 2011 1040a tax forms   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). 2011 1040a tax forms However, these distributions are taken into account when determining the modified adjusted gross income threshold. 2011 1040a tax forms Distributions from a nonqualified retirement plan are included in net investment income. 2011 1040a tax forms See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 2011 1040a tax forms Name change. 2011 1040a tax forms  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. 2011 1040a tax forms There are no changes to the rules regarding these IRAs. 2011 1040a tax forms See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. 2011 1040a tax forms Reminders 2014 limits. 2011 1040a tax forms   You can find information about the 2014 contribution and AGI limits in Publication 590. 2011 1040a tax forms Contributions to both traditional and Roth IRAs. 2011 1040a tax forms   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. 2011 1040a tax forms Statement of required minimum distribution. 2011 1040a tax forms  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. 2011 1040a tax forms The report or offer must include the date by which the amount must be distributed. 2011 1040a tax forms The report is due January 31 of the year in which the minimum distribution is required. 2011 1040a tax forms It can be provided with the year-end fair market value statement that you normally get each year. 2011 1040a tax forms No report is required for IRAs of owners who have died. 2011 1040a tax forms IRA interest. 2011 1040a tax forms  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. 2011 1040a tax forms Tax on your traditional IRA is generally deferred until you take a distribution. 2011 1040a tax forms Do not report this interest on your tax return as tax-exempt interest. 2011 1040a tax forms Form 8606. 2011 1040a tax forms   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. 2011 1040a tax forms The term “50 or older” is used several times in this chapter. 2011 1040a tax forms It refers to an IRA owner who is age 50 or older by the end of the tax year. 2011 1040a tax forms Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. 2011 1040a tax forms This chapter discusses the following topics. 2011 1040a tax forms The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). 2011 1040a tax forms The Roth IRA, which features nondeductible contributions and tax-free distributions. 2011 1040a tax forms Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. 2011 1040a tax forms For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. 2011 1040a tax forms For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. 2011 1040a tax forms 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. 2011 1040a tax forms ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms What is compensation?   Generally, compensation is what you earn from working. 2011 1040a tax forms Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. 2011 1040a tax forms 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). 2011 1040a tax forms   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. 2011 1040a tax forms   Compensation also includes commissions and taxable alimony and separate maintenance payments. 2011 1040a tax forms Self-employment income. 2011 1040a tax forms   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. 2011 1040a tax forms   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. 2011 1040a tax forms Nontaxable combat pay. 2011 1040a tax forms   For IRA purposes, if you were a member of the U. 2011 1040a tax forms S. 2011 1040a tax forms Armed Forces, your compensation includes any nontaxable combat pay you receive. 2011 1040a tax forms What is not compensation?   Compensation does not include any of the following items. 2011 1040a tax forms Earnings and profits from property, such as rental income, interest income, and dividend income. 2011 1040a tax forms Pension or annuity income. 2011 1040a tax forms Deferred compensation received (compensation payments postponed from a past year). 2011 1040a tax forms Income from a partnership for which you do not provide services that are a material income-producing factor. 2011 1040a tax forms Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. 2011 1040a tax forms Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. 2011 1040a tax forms When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. 2011 1040a tax forms However, the time for making contributions for any year is limited. 2011 1040a tax forms See When Can Contributions Be Made , later. 2011 1040a tax forms You can open different kinds of IRAs with a variety of organizations. 2011 1040a tax forms You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. 2011 1040a tax forms You can also open an IRA through your stockbroker. 2011 1040a tax forms Any IRA must meet Internal Revenue Code requirements. 2011 1040a tax forms Kinds of traditional IRAs. 2011 1040a tax forms   Your traditional IRA can be an individual retirement account or annuity. 2011 1040a tax forms It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. 2011 1040a tax forms How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. 2011 1040a tax forms These limits and other rules are explained below. 2011 1040a tax forms Community property laws. 2011 1040a tax forms   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. 2011 1040a tax forms This is the rule even in states with community property laws. 2011 1040a tax forms Brokers' commissions. 2011 1040a tax forms   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. 2011 1040a tax forms Trustees' fees. 2011 1040a tax forms   Trustees' administrative fees are not subject to the contribution limit. 2011 1040a tax forms Qualified reservist repayments. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. 2011 1040a tax forms Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. 2011 1040a tax forms (See Roth IRAs, later. 2011 1040a tax forms ) General limit. 2011 1040a tax forms   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. 2011 1040a tax forms $5,500 ($6,500 if you are 50 or older). 2011 1040a tax forms Your taxable compensation (defined earlier) for the year. 2011 1040a tax forms 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. 2011 1040a tax forms (See Nondeductible Contributions , later. 2011 1040a tax forms ) Qualified reservist repayments do not affect this limit. 2011 1040a tax forms Example 1. 2011 1040a tax forms Betty, who is 34 years old and single, earned $24,000 in 2013. 2011 1040a tax forms Her IRA contributions for 2013 are limited to $5,500. 2011 1040a tax forms Example 2. 2011 1040a tax forms John, an unmarried college student working part time, earned $3,500 in 2013. 2011 1040a tax forms His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. 2011 1040a tax forms Kay Bailey Hutchison Spousal IRA limit. 2011 1040a tax forms   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. 2011 1040a tax forms $5,500 ($6,500 if you are 50 or older). 2011 1040a tax forms The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. 2011 1040a tax forms Your spouse's IRA contribution for the year to a traditional IRA. 2011 1040a tax forms Any contribution for the year to a Roth IRA on behalf of your spouse. 2011 1040a tax forms 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). 2011 1040a tax forms 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). 2011 1040a tax forms Contributions must be in the form of money (cash, check, or money order). 2011 1040a tax forms Property cannot be contributed. 2011 1040a tax forms Contributions must be made by due date. 2011 1040a tax forms   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. 2011 1040a tax forms Age 70½ rule. 2011 1040a tax forms   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. 2011 1040a tax forms   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. 2011 1040a tax forms If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. 2011 1040a tax forms Designating year for which contribution is made. 2011 1040a tax forms   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. 2011 1040a tax forms 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). 2011 1040a tax forms Filing before a contribution is made. 2011 1040a tax forms   You can file your return claiming a traditional IRA contribution before the contribution is actually made. 2011 1040a tax forms Generally, the contribution must be made by the due date of your return, not including extensions. 2011 1040a tax forms Contributions not required. 2011 1040a tax forms   You do not have to contribute to your traditional IRA for every tax year, even if you can. 2011 1040a tax forms 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). 2011 1040a tax forms However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. 2011 1040a tax forms See Limit If Covered by Employer Plan , later. 2011 1040a tax forms You may be able to claim a credit for contributions to your traditional IRA. 2011 1040a tax forms For more information, see chapter 37. 2011 1040a tax forms Trustees' fees. 2011 1040a tax forms   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. 2011 1040a tax forms However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). 2011 1040a tax forms See chapter 28. 2011 1040a tax forms Brokers' commissions. 2011 1040a tax forms   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. 2011 1040a tax forms Full deduction. 2011 1040a tax forms   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). 2011 1040a tax forms 100% of your compensation. 2011 1040a tax forms This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. 2011 1040a tax forms Kay Bailey Hutchison Spousal IRA. 2011 1040a tax forms   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. 2011 1040a tax forms $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). 2011 1040a tax forms The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. 2011 1040a tax forms The IRA deduction for the year of the spouse with the greater compensation. 2011 1040a tax forms Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. 2011 1040a tax forms Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. 2011 1040a tax forms This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. 2011 1040a tax forms Note. 2011 1040a tax forms 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. 2011 1040a tax forms After a divorce or legal separation, you can deduct only contributions to your own IRA. 2011 1040a tax forms Your deductions are subject to the rules for single individuals. 2011 1040a tax forms Covered by an employer retirement plan. 2011 1040a tax forms   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. 2011 1040a tax forms This is discussed later under Limit If Covered by Employer Plan . 2011 1040a tax forms Limits on the amount you can deduct do not affect the amount that can be contributed. 2011 1040a tax forms See Nondeductible Contributions , later. 2011 1040a tax forms 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. 2011 1040a tax forms The “Retirement plan” box should be checked if you were covered. 2011 1040a tax forms Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. 2011 1040a tax forms If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. 2011 1040a tax forms Federal judges. 2011 1040a tax forms   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. 2011 1040a tax forms 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. 2011 1040a tax forms These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. 2011 1040a tax forms Tax year. 2011 1040a tax forms   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. 2011 1040a tax forms For almost all people, the tax year is the calendar year. 2011 1040a tax forms Defined contribution plan. 2011 1040a tax forms   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. 2011 1040a tax forms   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. 2011 1040a tax forms Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. 2011 1040a tax forms Defined benefit plan. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms   A defined benefit plan is any plan that is not a defined contribution plan. 2011 1040a tax forms Defined benefit plans include pension plans and annuity plans. 2011 1040a tax forms No vested interest. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms Social security or railroad retirement. 2011 1040a tax forms   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. 2011 1040a tax forms Benefits from a previous employer's plan. 2011 1040a tax forms   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. 2011 1040a tax forms Reservists. 2011 1040a tax forms   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. 2011 1040a tax forms You are not covered by the plan if both of the following conditions are met. 2011 1040a tax forms 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. 2011 1040a tax forms You did not serve more than 90 days on active duty during the year (not counting duty for training). 2011 1040a tax forms Volunteer firefighters. 2011 1040a tax forms   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. 2011 1040a tax forms You are not covered by the plan if both of the following conditions are met. 2011 1040a tax forms 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. 2011 1040a tax forms Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms These amounts vary depending on your filing status. 2011 1040a tax forms To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. 2011 1040a tax forms See Filing status and Modified adjusted gross income (AGI) , later. 2011 1040a tax forms Then use Table 17-1 or 17-2 to determine if the phaseout applies. 2011 1040a tax forms Social security recipients. 2011 1040a tax forms   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. 2011 1040a tax forms You received social security benefits. 2011 1040a tax forms You received taxable compensation. 2011 1040a tax forms Contributions were made to your traditional IRA. 2011 1040a tax forms You or your spouse was covered by an employer retirement plan. 2011 1040a tax forms Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. 2011 1040a tax forms Deduction phaseout. 2011 1040a tax forms   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. 2011 1040a tax forms Table 17-1. 2011 1040a tax forms 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. 2011 1040a tax forms IF your filing status is. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms   AND your modified AGI is. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms   THEN you can take. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms single   or  head of household   $59,000 or less   a full deduction. 2011 1040a tax forms   more than $59,000 but less than $69,000   a partial deduction. 2011 1040a tax forms   $69,000 or more   no deduction. 2011 1040a tax forms married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. 2011 1040a tax forms   more than $95,000 but less than $115,000   a partial deduction. 2011 1040a tax forms   $115,000 or more   no deduction. 2011 1040a tax forms married filing separately2   less than $10,000   a partial deduction. 2011 1040a tax forms   $10,000 or more   no deduction. 2011 1040a tax forms 1Modified AGI (adjusted gross income). 2011 1040a tax forms See Modified adjusted gross income (AGI) . 2011 1040a tax forms 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). 2011 1040a tax forms If your spouse is covered. 2011 1040a tax forms   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. 2011 1040a tax forms Filing status. 2011 1040a tax forms   Your filing status depends primarily on your marital status. 2011 1040a tax forms 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. 2011 1040a tax forms If you need more information on filing status, see chapter 2. 2011 1040a tax forms Lived apart from spouse. 2011 1040a tax forms   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. 2011 1040a tax forms Table 17-2. 2011 1040a tax forms 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. 2011 1040a tax forms IF your filing status is. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms   AND your modified AGI is. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms   THEN you can take. 2011 1040a tax forms . 2011 1040a tax forms . 2011 1040a tax forms single, head of household, or qualifying widow(er)   any amount   a full deduction. 2011 1040a tax forms married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. 2011 1040a tax forms married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. 2011 1040a tax forms   more than $178,000 but less than $188,000   a partial deduction. 2011 1040a tax forms   $188,000 or more   no deduction. 2011 1040a tax forms married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. 2011 1040a tax forms   $10,000 or more   no deduction. 2011 1040a tax forms 1Modified AGI (adjusted gross income). 2011 1040a tax forms See Modified adjusted gross income (AGI) . 2011 1040a tax forms 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. 2011 1040a tax forms Modified adjusted gross income (AGI). 2011 1040a tax forms   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. 2011 1040a tax forms If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. 2011 1040a tax forms You may be able to use Worksheet 17-1 to figure your modified AGI. 2011 1040a tax forms    Do not assume that your modified AGI is the same as your compensation. 2011 1040a tax forms Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. 2011 1040a tax forms Form 1040. 2011 1040a tax forms   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. 2011 1040a tax forms IRA deduction. 2011 1040a tax forms Student loan interest deduction. 2011 1040a tax forms Tuition and fees deduction. 2011 1040a tax forms Domestic production activities deduction. 2011 1040a tax forms Foreign earned income exclusion. 2011 1040a tax forms Foreign housing exclusion or deduction. 2011 1040a tax forms Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. 2011 1040a tax forms S. 2011 1040a tax forms Savings Bonds Issued After 1989. 2011 1040a tax forms Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. 2011 1040a tax forms This is your modified AGI. 2011 1040a tax forms Form 1040A. 2011 1040a tax forms   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. 2011 1040a tax forms IRA deduction. 2011 1040a tax forms Student loan interest deduction. 2011 1040a tax forms Tuition and fees deduction. 2011 1040a tax forms Exclusion of qualified savings bond interest shown on Form 8815. 2011 1040a tax forms This is your modified AGI. 2011 1040a tax forms Both contributions for 2013 and distributions in 2013. 2011 1040a tax forms   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. 2011 1040a tax forms You received distributions in 2013 from one or more traditional IRAs. 2011 1040a tax forms You made contributions to a traditional IRA for 2013. 2011 1040a tax forms Some of those contributions may be nondeductible contributions. 2011 1040a tax forms If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. 2011 1040a tax forms To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. 2011 1040a tax forms   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. 2011 1040a tax forms    How to figure your reduced IRA deduction. 2011 1040a tax forms   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. 2011 1040a tax forms Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. 2011 1040a tax forms Worksheet 17-1. 2011 1040a tax forms Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. 2011 1040a tax forms 1. 2011 1040a tax forms 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. 2011 1040a tax forms   2. 2011 1040a tax forms Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. 2011 1040a tax forms   3. 2011 1040a tax forms Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. 2011 1040a tax forms   4. 2011 1040a tax forms Enter any domestic production activities deduction from Form 1040, line 35 4. 2011 1040a tax forms   5. 2011 1040a tax forms Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. 2011 1040a tax forms   6. 2011 1040a tax forms Enter any foreign housing deduction from Form 2555, line 50 6. 2011 1040a tax forms   7. 2011 1040a tax forms Enter any excludable savings bond interest from Form 8815, line 14 7. 2011 1040a tax forms   8. 2011 1040a tax forms Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. 2011 1040a tax forms   9. 2011 1040a tax forms Add lines 1 through 8. 2011 1040a tax forms This is your Modified AGI for traditional IRA purposes 9. 2011 1040a tax forms   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. 2011 1040a tax forms If you file Form 1040A, enter your IRA deduction on line 17. 2011 1040a tax forms You cannot deduct IRA contributions on Form 1040EZ. 2011 1040a tax forms 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. 2011 1040a tax forms The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. 2011 1040a tax forms Example. 2011 1040a tax forms Mike is 28 years old and single. 2011 1040a tax forms In 2013, he was covered by a retirement plan at work. 2011 1040a tax forms His salary was $57,312. 2011 1040a tax forms His modified AGI was $70,000. 2011 1040a tax forms Mike made a $5,500 IRA contribution for 2013. 2011 1040a tax forms Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. 2011 1040a tax forms He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. 2011 1040a tax forms Form 8606. 2011 1040a tax forms   To designate contributions as nondeductible, you must file Form 8606. 2011 1040a tax forms   You do not have to designate a contribution as nondeductible until you file your tax return. 2011 1040a tax forms When you file, you can even designate otherwise deductible contributions as nondeductible. 2011 1040a tax forms   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. 2011 1040a tax forms 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. 2011 1040a tax forms In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. 2011 1040a tax forms See Form 8606 under Distributions Fully or Partly Taxable, later. 2011 1040a tax forms Failure to report nondeductible contributions. 2011 1040a tax forms   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. 2011 1040a tax forms All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2011 1040a tax forms Penalty for overstatement. 2011 1040a tax forms   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. 2011 1040a tax forms Penalty for failure to file Form 8606. 2011 1040a tax forms   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. 2011 1040a tax forms    Tax on earnings on nondeductible contributions. 2011 1040a tax forms   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. 2011 1040a tax forms See When Can You Withdraw or Use IRA Assets , later. 2011 1040a tax forms Cost basis. 2011 1040a tax forms   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. 2011 1040a tax forms Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. 2011 1040a tax forms Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. 2011 1040a tax forms A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. 2011 1040a tax forms Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. 2011 1040a tax forms Inherited from spouse. 2011 1040a tax forms   If you inherit a traditional IRA from your spouse, you generally have the following three choices. 2011 1040a tax forms You can: Treat it as your own IRA by designating yourself as the account owner. 2011 1040a tax forms 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). 2011 1040a tax forms Treat yourself as the beneficiary rather than treating the IRA as your own. 2011 1040a tax forms Treating it as your own. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms   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. 2011 1040a tax forms Inherited from someone other than spouse. 2011 1040a tax forms   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. 2011 1040a tax forms This means that you cannot make any contributions to the IRA. 2011 1040a tax forms It also means you cannot roll over any amounts into or out of the inherited IRA. 2011 1040a tax forms 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. 2011 1040a tax forms For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. 2011 1040a tax forms 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. 2011 1040a tax forms You can make the following kinds of transfers. 2011 1040a tax forms Transfers from one trustee to another. 2011 1040a tax forms Rollovers. 2011 1040a tax forms Transfers incident to a divorce. 2011 1040a tax forms Transfers to Roth IRAs. 2011 1040a tax forms   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. 2011 1040a tax forms You can also move assets from a qualified retirement plan to a Roth IRA. 2011 1040a tax forms See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. 2011 1040a tax forms 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. 2011 1040a tax forms Because there is no distribution to you, the transfer is tax free. 2011 1040a tax forms 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 . 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms The contribution to the second retirement plan is called a “rollover contribution. 2011 1040a tax forms ” Note. 2011 1040a tax forms 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. 2011 1040a tax forms Kinds of rollovers to a traditional IRA. 2011 1040a tax forms   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). 2011 1040a tax forms Treatment of rollovers. 2011 1040a tax forms   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 . 2011 1040a tax forms Kinds of rollovers from a traditional IRA. 2011 1040a tax forms   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. 2011 1040a tax forms 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). 2011 1040a tax forms The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). 2011 1040a tax forms Qualified plans may, but are not required to, accept such rollovers. 2011 1040a tax forms Time limit for making a rollover contribution. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2011 1040a tax forms Extension of rollover period. 2011 1040a tax forms   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. 2011 1040a tax forms For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2011 1040a tax forms More information. 2011 1040a tax forms   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2011 1040a tax forms 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. 2011 1040a tax forms Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. 2011 1040a tax forms Waiting period between rollovers. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. 2011 1040a tax forms Example. 2011 1040a tax forms You have two traditional IRAs, IRA-1 and IRA-2. 2011 1040a tax forms You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms Exception. 2011 1040a tax forms   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. 2011 1040a tax forms Partial rollovers. 2011 1040a tax forms   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. 2011 1040a tax forms The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). 2011 1040a tax forms 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? . 2011 1040a tax forms Required distributions. 2011 1040a tax forms   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. 2011 1040a tax forms Inherited IRAs. 2011 1040a tax forms   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. 2011 1040a tax forms See Treating it as your own , earlier. 2011 1040a tax forms Not inherited from spouse. 2011 1040a tax forms   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. 2011 1040a tax forms You must withdraw the IRA assets within a certain period. 2011 1040a tax forms For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. 2011 1040a tax forms Reporting rollovers from IRAs. 2011 1040a tax forms   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. 2011 1040a tax forms   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. 2011 1040a tax forms 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. 2011 1040a tax forms 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. 2011 1040a tax forms Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. 2011 1040a tax forms See your tax return instructions. 2011 1040a tax forms   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. 2011 1040a tax forms 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). 2011 1040a tax forms A qualified plan is one that meets the requirements of the Internal Revenue Code. 2011 1040a tax forms Eligible rollover distribution. 2011 1040a tax forms   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. 2011 1040a tax forms A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). 2011 1040a tax forms A hardship distribution. 2011 1040a tax forms 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. 2011 1040a tax forms Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. 2011 1040a tax forms 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. 2011 1040a tax forms Dividends on employer securities. 2011 1040a tax forms The cost of life insurance coverage. 2011 1040a tax forms Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. 2011 1040a tax forms To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. 2011 1040a tax forms See Form 8606 under Distributions Fully or Partly Taxable, later. 2011 1040a tax forms Rollover by nonspouse beneficiary. 2011 1040a tax forms   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. 2011 1040a tax forms The IRA is treated as an inherited IRA. 2011 1040a tax forms For more information about inherited IRAs, see Inherited IRAs , earlier. 2011 1040a tax forms Reporting rollovers from employer plans. 2011 1040a tax forms    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. 2011 1040a tax forms This amount should be shown in box 1 of Form 1099-R. 2011 1040a tax forms From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. 2011 1040a tax forms From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. 2011 1040a tax forms Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. 2011 1040a tax forms Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. 2011 1040a tax forms 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. 2011 1040a tax forms The transfer is tax free. 2011 1040a tax forms For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2011 1040a tax forms Converting From Any Traditional IRA to a Roth IRA Allowable conversions. 2011 1040a tax forms   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. 2011 1040a tax forms The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. 2011 1040a tax forms If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. 2011 1040a tax forms However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. 2011 1040a tax forms Required distributions. 2011 1040a tax forms   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). 2011 1040a tax forms Income. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms   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. 2011 1040a tax forms   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. 2011 1040a tax forms   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. 2011 1040a tax forms See chapter 4. 2011 1040a tax forms 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. 2011 1040a tax forms This is called recharacterizing the contribution. 2011 1040a tax forms See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. 2011 1040a tax forms How to recharacterize a contribution. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms If you recharacterize your contribution, you must do all three of the following. 2011 1040a tax forms Include in the transfer any net income allocable to the contribution. 2011 1040a tax forms If there was a loss, the net income you must transfer may be a negative amount. 2011 1040a tax forms Report the recharacterization on your tax return for the year during which the contribution was made. 2011 1040a tax forms Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. 2011 1040a tax forms No deduction allowed. 2011 1040a tax forms   You cannot deduct the contribution to the first IRA. 2011 1040a tax forms Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. 2011 1040a tax forms Required notifications. 2011 1040a tax forms   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. 2011 1040a tax forms You must make the notifications by the date of the transfer. 2011 1040a tax forms Only one notification is required if both IRAs are maintained by the same trustee. 2011 1040a tax forms The notification(s) must include all of the following information. 2011 1040a tax forms The type and amount of the contribution to the first IRA that is to be recharacterized. 2011 1040a tax forms The date on which the contribution was made to the first IRA and the year for which it was made. 2011 1040a tax forms 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. 2011 1040a tax forms The name of the trustee of the first IRA and the name of the trustee of the second IRA. 2011 1040a tax forms Any additional information needed to make the transfer. 2011 1040a tax forms Reporting a recharacterization. 2011 1040a tax forms   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. 2011 1040a tax forms You must treat the contribution as having been made to the second IRA. 2011 1040a tax forms When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. 2011 1040a tax forms Violation of the rules generally results in additional taxes in the year of violation. 2011 1040a tax forms See What Acts Result in Penalties or Additional Taxes , later. 2011 1040a tax forms Contributions returned before the due date of return. 2011 1040a tax forms   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. 2011 1040a tax forms If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. 2011 1040a tax forms You can do this if, for each contribution you withdraw, both of the following conditions apply. 2011 1040a tax forms You did not take a deduction for the contribution. 2011 1040a tax forms You withdraw any interest or other income earned on the contribution. 2011 1040a tax forms You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 2011 1040a tax forms If there was a loss, the net income earned on the contribution may be a negative amount. 2011 1040a tax forms Note. 2011 1040a tax forms 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. 2011 1040a tax forms Earnings includible in income. 2011 1040a tax forms   You must include in income any earnings on the contributions you withdraw. 2011 1040a tax forms Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. 2011 1040a tax forms 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. 2011 1040a tax forms Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. 2011 1040a tax forms    Early distributions tax. 2011 1040a tax forms   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. 2011 1040a tax forms 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. 2011 1040a tax forms When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. 2011 1040a tax forms Eventually they must be distributed. 2011 1040a tax forms 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. 2011 1040a tax forms See Excess Accumulations (Insufficient Distributions) , later. 2011 1040a tax forms The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. 2011 1040a tax forms Required minimum distribution. 2011 1040a tax forms   The amount that must be distributed each year is referred to as the required minimum distribution. 2011 1040a tax forms Required distributions not eligible for rollover. 2011 1040a tax forms   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. 2011 1040a tax forms IRA owners. 2011 1040a tax forms   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. 2011 1040a tax forms April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. 2011 1040a tax forms Distributions by the required beginning date. 2011 1040a tax forms   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). 2011 1040a tax forms 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. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms Distributions after the required beginning date. 2011 1040a tax forms   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. 2011 1040a tax forms    Beneficiaries. 2011 1040a tax forms   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. 2011 1040a tax forms More information. 2011 1040a tax forms   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. 2011 1040a tax forms Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. 2011 1040a tax forms Exceptions. 2011 1040a tax forms   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 . 2011 1040a tax forms    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. 2011 1040a tax forms 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. 2011 1040a tax forms Qualified charitable distributions (QCD). 2011 1040a tax forms   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. 2011 1040a tax forms Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. 2011 1040a tax forms See Qualified Charitable Distributions in Publication 590 for more information. 2011 1040a tax forms Ordinary income. 2011 1040a tax forms   Distributions from traditional IRAs that you include in income are taxed as ordinary income. 2011 1040a tax forms No special treatment. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms Fully taxable. 2011 1040a tax forms   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. 2011 1040a tax forms Because you have no basis in your IRA, any distributions are fully taxable when received. 2011 1040a tax forms See Reporting taxable distributions on your return , later. 2011 1040a tax forms Partly taxable. 2011 1040a tax forms    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. 2011 1040a tax forms These nondeductible contributions are not taxed when they are distributed to you. 2011 1040a tax forms They are a return of your investment in your IRA. 2011 1040a tax forms   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. 2011 1040a tax forms 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). 2011 1040a tax forms Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. 2011 1040a tax forms Form 8606. 2011 1040a tax forms   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. 2011 1040a tax forms Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. 2011 1040a tax forms Note. 2011 1040a tax forms 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. 2011 1040a tax forms Send it to the IRS at the time and place you would otherwise file an income tax return. 2011 1040a tax forms Distributions reported on Form 1099-R. 2011 1040a tax forms   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. 2011 1040a tax forms , or a similar statement. 2011 1040a tax forms IRA distributions are shown in boxes 1 and 2a of Form 1099-R. 2011 1040a tax forms A number or letter code in box 7 tells you what type of distribution you received from your IRA. 2011 1040a tax forms Withholding. 2011 1040a tax forms   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. 2011 1040a tax forms See chapter 4. 2011 1040a tax forms IRA distributions delivered outside the United States. 2011 1040a tax forms   In general, if you are a U. 2011 1040a tax forms S. 2011 1040a tax forms 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. 2011 1040a tax forms Reporting taxable distributions on your return. 2011 1040a tax forms    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). 2011 1040a tax forms 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. 2011 1040a tax forms You cannot report distributions on Form 1040EZ. 2011 1040a tax forms 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. 2011 1040a tax forms There are additions to the regular tax for using your IRA funds in prohibited transactions. 2011 1040a tax forms There are also additional taxes for the following activities. 2011 1040a tax forms Investing in collectibles. 2011 1040a tax forms Making excess contributions. 2011 1040a tax forms Taking early distributions. 2011 1040a tax forms Allowing excess amounts to accumulate (failing to take required distributions). 2011 1040a tax forms There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. 2011 1040a tax forms Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. 2011 1040a tax forms Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). 2011 1040a tax forms The following are examples of prohibited transactions with a traditional IRA. 2011 1040a tax forms Borrowing money from it. 2011 1040a tax forms Selling property to it. 2011 1040a tax forms Receiving unreasonable compensation for managing it. 2011 1040a tax forms Using it as security for a loan. 2011 1040a tax forms Buying property for personal use (present or future) with IRA funds. 2011 1040a tax forms Effect on an IRA account. 2011 1040a tax forms   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. 2011 1040a tax forms Effect on you or your beneficiary. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. 2011 1040a tax forms The distribution may be subject to additional taxes or penalties. 2011 1040a tax forms Taxes on prohibited transactions. 2011 1040a tax forms   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. 2011 1040a tax forms 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. 2011 1040a tax forms More information. 2011 1040a tax forms   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. 2011 1040a tax forms Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. 2011 1040a tax forms You may have to pay the 10% additional tax on early distributions, discussed later. 2011 1040a tax forms Collectibles. 2011 1040a tax forms   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. 2011 1040a tax forms Exception. 2011 1040a tax forms    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. 2011 1040a tax forms S. 2011 1040a tax forms gold coins, or one-ounce silver coins minted by the Treasury Department. 2011 1040a tax forms It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. 2011 1040a tax forms 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. 2011 1040a tax forms For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. 2011 1040a tax forms Tax on excess contributions. 2011 1040a tax forms   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. 2011 1040a tax forms You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. 2011 1040a tax forms The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. 2011 1040a tax forms Excess contributions withdrawn by due date of return. 2011 1040a tax forms   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. 2011 1040a tax forms You must complete your withdrawal by the date your tax return for that year is due, including extensions. 2011 1040a tax forms How to treat withdrawn contributions. 2011 1040a tax forms   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. 2011 1040a tax forms No deduction was allowed for the excess contribution. 2011 1040a tax forms You withdraw the interest or other income earned on the excess contribution. 2011 1040a tax forms You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 2011 1040a tax forms If there was a loss, the net income you must withdraw may be a negative amount. 2011 1040a tax forms How to treat withdrawn interest or other income. 2011 1040a tax forms   You must include in your gross income the interest or other income that was earned on the excess contribution. 2011 1040a tax forms Report it on your return for the year in which the excess contribution was made. 2011 1040a tax forms Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus