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File 1040ez

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File 1040ez

File 1040ez 6. File 1040ez   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. File 1040ez Free help with your return. File 1040ez   You can get free help preparing your return nationwide from IRS-certified volunteers. File 1040ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. File 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. File 1040ez 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. File 1040ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. File 1040ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. File 1040ez gov, download the IRS2Go app, or call 1-800-906-9887. File 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. File 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. File 1040ez aarp. File 1040ez org/money/taxaide or call 1-888-227-7669. File 1040ez For more information on these programs, go to IRS. File 1040ez gov and enter “VITA” in the search box. File 1040ez   For more information on these programs, go to IRS. File 1040ez gov and enter “VITA” in the search box. File 1040ez Internet. File 1040ez    IRS. File 1040ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. File 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. File 1040ez Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. File 1040ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. File 1040ez gov or download the IRS2Go app and select the Refund Status option. File 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. File 1040ez Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. File 1040ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. File 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. File 1040ez Use the Interactive Tax Assistant (ITA) to research your tax questions. File 1040ez No need to wait on the phone or stand in line. File 1040ez The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. File 1040ez When you reach the response screen, you can print the entire interview and the final response for your records. File 1040ez New subject areas are added on a regular basis. File 1040ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. File 1040ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. File 1040ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. File 1040ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. File 1040ez When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. File 1040ez Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. File 1040ez You can also ask the IRS to mail a return or an account transcript to you. File 1040ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. File 1040ez gov or by calling 1-800-908-9946. File 1040ez Tax return and tax account transcripts are generally available for the current year and the past three years. File 1040ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. File 1040ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. File 1040ez If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. File 1040ez Check the status of your amended return using Where's My Amended Return? Go to IRS. File 1040ez gov and enter Where's My Amended Return? in the search box. File 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. File 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. File 1040ez Make a payment using one of several safe and convenient electronic payment options available on IRS. File 1040ez gov. File 1040ez Select the Payment tab on the front page of IRS. File 1040ez gov for more information. File 1040ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. File 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. File 1040ez gov. File 1040ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. File 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. File 1040ez gov. File 1040ez Request an Electronic Filing PIN by going to IRS. File 1040ez gov and entering Electronic Filing PIN in the search box. File 1040ez Download forms, instructions and publications, including accessible versions for people with disabilities. File 1040ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. File 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. File 1040ez An employee can answer questions about your tax account or help you set up a payment plan. File 1040ez Before you visit, check the Office Locator on IRS. File 1040ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. File 1040ez If you have a special need, such as a disability, you can request an appointment. File 1040ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. File 1040ez Apply for an Employer Identification Number (EIN). File 1040ez Go to IRS. File 1040ez gov and enter Apply for an EIN in the search box. File 1040ez Read the Internal Revenue Code, regulations, or other official guidance. File 1040ez Read Internal Revenue Bulletins. File 1040ez Sign up to receive local and national tax news and more by email. File 1040ez Just click on “subscriptions” above the search box on IRS. File 1040ez gov and choose from a variety of options. File 1040ez Phone. File 1040ez    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. File 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. File 1040ez Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. File 1040ez gov, or download the IRS2Go app. File 1040ez Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. File 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. File 1040ez Most VITA and TCE sites offer free electronic filing. File 1040ez Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. File 1040ez Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. File 1040ez Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. File 1040ez If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. File 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. File 1040ez Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. File 1040ez Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. File 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. File 1040ez Note, the above information is for our automated hotline. File 1040ez Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. File 1040ez Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. File 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. File 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. File 1040ez Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). File 1040ez You should receive your order within 10 business days. File 1040ez Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. File 1040ez If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. File 1040ez Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. File 1040ez The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. File 1040ez These individuals can also contact the IRS through relay services such as the Federal Relay Service. File 1040ez Walk-in. File 1040ez   You can find a selection of forms, publications and services — in-person. File 1040ez Products. File 1040ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. File 1040ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. File 1040ez Services. File 1040ez You can walk in to your local TAC for face-to-face tax help. File 1040ez An employee can answer questions about your tax account or help you set up a payment plan. File 1040ez Before visiting, use the Office Locator tool on IRS. File 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. File 1040ez Mail. File 1040ez   You can send your order for forms, instructions, and publications to the address below. File 1040ez You should receive a response within 10 business days after your request is received. File 1040ez Internal Revenue Service 1201 N. File 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. File 1040ez The Taxpayer Advocate Service (TAS) is your voice at the IRS. File 1040ez Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. File 1040ez   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. File 1040ez We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. File 1040ez You face (or your business is facing) an immediate threat of adverse action. File 1040ez You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. File 1040ez   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. File 1040ez Here's why we can help: TAS is an independent organization within the IRS. File 1040ez Our advocates know how to work with the IRS. File 1040ez Our services are free and tailored to meet your needs. File 1040ez We have offices in every state, the District of Columbia, and Puerto Rico. File 1040ez   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. File 1040ez   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. File 1040ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. File 1040ez Low Income Taxpayer Clinics   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. File 1040ez Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. File 1040ez Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. File 1040ez Prev  Up  Next   Home   More Online Publications
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File 1040ez 3. File 1040ez   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. File 1040ez Traditional IRA mistakenly moved to SIMPLE IRA. File 1040ez When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). File 1040ez It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. File 1040ez Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). File 1040ez This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. File 1040ez See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. File 1040ez If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. File 1040ez See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. File 1040ez What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. File 1040ez See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. File 1040ez A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. File 1040ez These contributions are called salary reduction contributions. File 1040ez All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. File 1040ez The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. File 1040ez Contributions are made on behalf of eligible employees. File 1040ez (See Eligible Employees below. File 1040ez ) Contributions are also subject to various limits. File 1040ez (See How Much Can Be Contributed on Your Behalf , later. File 1040ez ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. File 1040ez See How Are Contributions Made , later. File 1040ez You may be able to claim a credit for contributions to your SIMPLE plan. File 1040ez For more information, see chapter 4. File 1040ez Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. File 1040ez Self-employed individual. File 1040ez   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. File 1040ez Excludable employees. File 1040ez   Your employer can exclude the following employees from participating in the SIMPLE plan. File 1040ez Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). File 1040ez Employees who are nonresident aliens and received no earned income from sources within the United States. File 1040ez Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. File 1040ez Compensation. File 1040ez   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. File 1040ez Wages, tips, and other pay from your employer that is subject to income tax withholding. File 1040ez Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. File 1040ez Self-employed individual compensation. File 1040ez   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. File 1040ez   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. File 1040ez How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. File 1040ez They are made on your behalf by your employer. File 1040ez Your employer must also make either matching contributions or nonelective contributions. File 1040ez Salary reduction contributions. File 1040ez   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). File 1040ez You can choose to cancel the election at any time during the year. File 1040ez   Salary reduction contributions are also referred to as “elective deferrals. File 1040ez ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. File 1040ez Matching contributions. File 1040ez   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. File 1040ez See How Much Can Be Contributed on Your Behalf below. File 1040ez These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. File 1040ez These contributions are referred to as matching contributions. File 1040ez   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. File 1040ez Nonelective contributions. File 1040ez   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. File 1040ez These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. File 1040ez   One of the requirements your employer must satisfy is notifying the employees that the election was made. File 1040ez For other requirements that your employer must satisfy, see chapter 3 of Publication 560. File 1040ez How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. File 1040ez Salary reduction contributions limit. File 1040ez   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. File 1040ez The limitation remains at $12,000 for 2014. File 1040ez If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. File 1040ez You, not your employer, are responsible for monitoring compliance with these limits. File 1040ez Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. File 1040ez The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. File 1040ez $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. File 1040ez The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. File 1040ez The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. File 1040ez Matching employer contributions limit. File 1040ez   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. File 1040ez These matching contributions cannot be more than 3% of your compensation for the calendar year. File 1040ez See Matching contributions less than 3% below. File 1040ez Example 1. File 1040ez In 2013, Joshua was a participant in his employer's SIMPLE plan. File 1040ez His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). File 1040ez Instead of taking it all in cash, Joshua elected to have 12. File 1040ez 5% of his weekly pay ($100) contributed to his SIMPLE IRA. File 1040ez For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. File 1040ez Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. File 1040ez Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). File 1040ez Example 2. File 1040ez Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. File 1040ez 94% of his weekly pay contributed to his SIMPLE IRA. File 1040ez In this example, Joshua's salary reduction contributions for the year (2. File 1040ez 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). File 1040ez Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. File 1040ez In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. File 1040ez Matching contributions less than 3%. File 1040ez   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. File 1040ez   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. File 1040ez If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. File 1040ez Nonelective employer contributions limit. File 1040ez   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. File 1040ez For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. File 1040ez   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. File 1040ez Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. File 1040ez This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. File 1040ez Example 3. File 1040ez Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. File 1040ez Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. File 1040ez In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). File 1040ez Traditional IRA mistakenly moved to SIMPLE IRA. File 1040ez   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. File 1040ez For more information, see Recharacterizations in chapter 1. File 1040ez Recharacterizing employer contributions. File 1040ez   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. File 1040ez SEPs are discussed in chapter 2 of Publication 560. File 1040ez SIMPLE plans are discussed in this chapter. File 1040ez Converting from a SIMPLE IRA. File 1040ez   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . File 1040ez    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. File 1040ez When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. File 1040ez These rules are discussed in chapter 1. File 1040ez Your employer cannot restrict you from taking distributions from a SIMPLE IRA. File 1040ez Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. File 1040ez If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. File 1040ez See Additional Tax on Early Distributions, later. File 1040ez Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. File 1040ez Two-year rule. File 1040ez   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. File 1040ez The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. File 1040ez   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). File 1040ez Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. File 1040ez If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. File 1040ez If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. File 1040ez Prev  Up  Next   Home   More Online Publications