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File An Amended Tax Return Online

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File An Amended Tax Return Online

File an amended tax return online 9. File an amended tax return online   Worksheets Table of Contents When Should I Figure MAC?Checking the Previous Year's Contributions Available Worksheets Chapter 2 introduced you to the term maximum amount contributable (MAC). File an amended tax return online Generally, your MAC is the lesser of your: Limit on annual additions (chapter 3), or Limit on elective deferrals (chapter 4). File an amended tax return online The worksheets in this chapter can help you figure the cost of incidental life insurance, your includible compensation, your limit on annual additions, your limit on elective deferrals, your limit on catch-up contributions, and your MAC. File an amended tax return online After completing the worksheets, you should maintain them with your 403(b) records for that year. File an amended tax return online Do not attach them to your tax return. File an amended tax return online At the end of the year or the beginning of the next year, you should compare your estimated compensation figures with your actual figures. File an amended tax return online If your compensation is the same as, or more than, the projected amounts and the calculations are correct, then you should simply file these worksheets with your other tax records for the year. File an amended tax return online If your compensation was lower than your estimated figures, you will need to check the amount contributed during the year to determine if contributions are more than your MAC. File an amended tax return online When Should I Figure MAC? At the beginning of each year, you should figure your MAC using a conservative estimate of your compensation. File an amended tax return online Should your income change during the year, you should refigure your MAC based on a revised conservative estimate. File an amended tax return online By doing this, you will be able to determine if contributions to your 403(b) account should be increased or decreased for the year. File an amended tax return online Checking the Previous Year's Contributions At the beginning of the following year, you should refigure your MAC based on your actual earned income. File an amended tax return online At the end of the current year or the beginning of the next year, you should check your contributions to be sure you did not exceed your MAC. File an amended tax return online This means refiguring your limit based on your actual compensation figures for the year. File an amended tax return online This will allow you to determine if the amount contributed is more than the allowable amounts, and possibly avoid additional taxes. File an amended tax return online Available Worksheets The following worksheets have been provided to help you figure your MAC. File an amended tax return online Worksheet A. File an amended tax return online Cost of Incidental Life Insurance. File an amended tax return online Worksheet B. File an amended tax return online Includible Compensation for Your Most Recent Year of Service Worksheet C. File an amended tax return online Limit on Catch-Up Contributions. File an amended tax return online ??? Worksheet 1. File an amended tax return online Maximum Amount Contributable (MAC). File an amended tax return online Worksheet A. File an amended tax return online Cost of Incidental Life Insurance Note. File an amended tax return online Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. File an amended tax return online This amount will be used to figure includible compensation for your most recent year of service. File an amended tax return online 1. File an amended tax return online Enter the value of the contract (amount payable upon your death) 1. File an amended tax return online   2. File an amended tax return online Enter the cash value in the contract at the end of the year 2. File an amended tax return online   3. File an amended tax return online Subtract line 2 from line 1. File an amended tax return online This is the value of your current life insurance protection 3. File an amended tax return online   4. File an amended tax return online Enter your age on your birthday nearest the beginning of the policy year 4. File an amended tax return online   5. File an amended tax return online Enter the 1-year term premium for $1,000 of life insurance based on your age. File an amended tax return online (From Figure 3-1) 5. File an amended tax return online   6. File an amended tax return online Divide line 3 by $1,000 6. File an amended tax return online   7. File an amended tax return online Multiply line 6 by line 5. File an amended tax return online This is the cost of your incidental life insurance 7. File an amended tax return online   Worksheet B. File an amended tax return online Includible Compensation for Your Most Recent Year of Service1 Note. File an amended tax return online Use this worksheet to figure includible compensation for your most recent year of service. File an amended tax return online 1. File an amended tax return online Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. File an amended tax return online   2. File an amended tax return online Enter elective deferrals excluded from your gross income for your most recent year of service2 2. File an amended tax return online   3. File an amended tax return online Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. File an amended tax return online   4. File an amended tax return online Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government or of a tax-exempt organization) for your most recent year of service 4. File an amended tax return online   5. File an amended tax return online Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. File an amended tax return online   6. File an amended tax return online Enter your foreign earned income exclusion for your most recent year of service 6. File an amended tax return online   7. File an amended tax return online Add lines 1, 2, 3, 4, 5, and 6 7. File an amended tax return online   8. File an amended tax return online Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. File an amended tax return online   9. File an amended tax return online Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. File an amended tax return online   10. File an amended tax return online Add lines 8 and 9 10. File an amended tax return online   11. File an amended tax return online Subtract line 10 from line 7. File an amended tax return online This is your includible compensation for your most recent year of service 11. File an amended tax return online   1Use estimated amounts if figuring includible compensation before the end of the year. File an amended tax return online  2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. File an amended tax return online Worksheet C. File an amended tax return online Limit on Catch-Up Contributions Note. File an amended tax return online If you will be age 50 or older by the end of the year, use this worksheet to figure your limit on catch-up contributions. File an amended tax return online 1. File an amended tax return online Maximum catch-up contributions 1. File an amended tax return online $5,500 2. File an amended tax return online Enter your includible compensation for your most recent year of service 2. File an amended tax return online   3. File an amended tax return online Enter your elective deferrals 3. File an amended tax return online   4. File an amended tax return online Subtract line 3 from line 2 4. File an amended tax return online   5. File an amended tax return online Enter the lesser of line 1 or line 4. File an amended tax return online This is your limit on catch-up contributions 5. File an amended tax return online   Worksheet 1. File an amended tax return online Maximum Amount Contributable (MAC) Note. File an amended tax return online Use this worksheet to figure your MAC. File an amended tax return online Part I. File an amended tax return online Limit on Annual Additions     1. File an amended tax return online Enter your includible compensation for your most recent year of service 1. File an amended tax return online   2. File an amended tax return online Maximum1: For 2013, enter $51,000 For 2014, enter $52,000 2. File an amended tax return online   3. File an amended tax return online Enter the lesser of line 1 or line 2. File an amended tax return online This is your limit on annual additions 3. File an amended tax return online     Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. File an amended tax return online     Part II. File an amended tax return online Limit on Elective Deferrals     4. File an amended tax return online Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. File an amended tax return online     Note. File an amended tax return online If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. File an amended tax return online If not, enter zero (-0-) on line 16 and go to line 17. File an amended tax return online     5. File an amended tax return online Amount per year of service 5. File an amended tax return online $ 5,000 6. File an amended tax return online Enter your years of service 6. File an amended tax return online   7. File an amended tax return online Multiply line 5 by line 6 7. File an amended tax return online   8. File an amended tax return online Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. File an amended tax return online   9. File an amended tax return online Subtract line 8 from line 7. File an amended tax return online If zero or less, enter zero (-0-) 9. File an amended tax return online   10. File an amended tax return online Maximum increase in limit for long service 10. File an amended tax return online $15,000 11. File an amended tax return online Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. File an amended tax return online   12. File an amended tax return online Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. File an amended tax return online   13. File an amended tax return online Add line 11 and line 12 13. File an amended tax return online   14. File an amended tax return online Subtract line 13 from line 10 14. File an amended tax return online   15. File an amended tax return online Maximum additional contributions 15. File an amended tax return online $ 3,000 16. File an amended tax return online Enter the least of lines 9, 14, or 15. File an amended tax return online This is your increase in the limit for long service 16. File an amended tax return online   17. File an amended tax return online Add lines 4 and 16. File an amended tax return online This is your limit on elective deferrals 17. File an amended tax return online     Part III. File an amended tax return online Maximum Amount Contributable     18. File an amended tax return online If you had only nonelective contributions, enter the amount from line 3. File an amended tax return online This is your MAC. File an amended tax return online    If you had only elective deferrals, enter the lesser of lines 3 or 17. File an amended tax return online This is your MAC. File an amended tax return online    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. File an amended tax return online This is your MAC. File an amended tax return online (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. File an amended tax return online ) 18. File an amended tax return online   1If you participate in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pension plans of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. File an amended tax return online You must also combine the contributions made to all 403(b) accounts on your behalf by your employer. File an amended tax return online Prev  Up  Next   Home   More Online Publications
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The File An Amended Tax Return Online

File an amended tax return online 1. File an amended tax return online   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. File an amended tax return online When repayment contributions can be made. File an amended tax return online No deduction. File an amended tax return online Reserve component. File an amended tax return online Figuring your IRA deduction. File an amended tax return online Reporting the repayment. File an amended tax return online Example. File an amended tax return online General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. File an amended tax return online Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. File an amended tax return online Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. File an amended tax return online Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. File an amended tax return online 2013 Reporting. File an amended tax return online Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. File an amended tax return online One-time transfer. File an amended tax return online Testing period rules apply. File an amended tax return online More information. File an amended tax return online Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. File an amended tax return online  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. File an amended tax return online 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. File an amended tax return online For more information, see How Much Can Be Contributed? in this chapter. File an amended tax return online Modified AGI limit for traditional IRA contributions increased. File an amended tax return online  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. File an amended tax return online 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. File an amended tax return online If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. File an amended tax return online See How Much Can You Deduct? in this chapter. File an amended tax return online Net Investment Income Tax. File an amended tax return online  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). File an amended tax return online However, these distributions are taken into account when determining the modified adjusted gross income threshold. File an amended tax return online Distributions from a nonqualified retirement plan are included in net investment income. File an amended tax return online See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. File an amended tax return online What's New for 2014 Modified AGI limit for traditional IRA contributions increased. File an amended tax return online  For 2014, if you are 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 $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. File an amended tax return online If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. File an amended tax return online If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. File an amended tax return online Introduction This chapter discusses the original IRA. File an amended tax return online In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. File an amended tax return online ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. File an amended tax return online The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. File an amended tax return online Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. File an amended tax return online 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. File an amended tax return online You can have a traditional IRA whether or not you are covered by any other retirement plan. File an amended tax return online However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. File an amended tax return online See How Much Can You Deduct , later. File an amended tax return online Both spouses have compensation. File an amended tax return online   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. File an amended tax return online You cannot both participate in the same IRA. File an amended tax return online If you file a joint return, only one of you needs to have compensation. File an amended tax return online What Is Compensation? Generally, compensation is what you earn from working. File an amended tax return online For a summary of what compensation does and does not include, see Table 1-1. File an amended tax return online Compensation includes all of the items discussed next (even if you have more than one type). File an amended tax return online Wages, salaries, etc. File an amended tax return online   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. File an amended tax return online 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). File an amended tax return online Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. File an amended tax return online Commissions. File an amended tax return online   An amount you receive that is a percentage of profits or sales price is compensation. File an amended tax return online Self-employment income. File an amended tax return online   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 deduction allowed for the deductible part of your self-employment taxes. File an amended tax return online   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. File an amended tax return online Self-employment loss. File an amended tax return online   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. File an amended tax return online Alimony and separate maintenance. File an amended tax return online   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. File an amended tax return online Nontaxable combat pay. File an amended tax return online   If you were a member of the U. File an amended tax return online S. File an amended tax return online Armed Forces, compensation includes any nontaxable combat pay you received. File an amended tax return online This amount should be reported in box 12 of your 2013 Form W-2 with code Q. File an amended tax return online Table 1-1. File an amended tax return online Compensation for Purposes of an IRA Includes . File an amended tax return online . File an amended tax return online . File an amended tax return online Does not include . File an amended tax return online . File an amended tax return online . File an amended tax return online   earnings and profits from property. File an amended tax return online wages, salaries, etc. File an amended tax return online     interest and dividend income. File an amended tax return online commissions. File an amended tax return online     pension or annuity income. File an amended tax return online self-employment income. File an amended tax return online     deferred compensation. File an amended tax return online alimony and separate maintenance. File an amended tax return online     income from certain  partnerships. File an amended tax return online nontaxable combat pay. File an amended tax return online     any amounts you exclude from income. File an amended tax return online     What Is Not Compensation? Compensation does not include any of the following items. File an amended tax return online Earnings and profits from property, such as rental income, interest income, and dividend income. File an amended tax return online Pension or annuity income. File an amended tax return online Deferred compensation received (compensation payments postponed from a past year). File an amended tax return online Income from a partnership for which you do not provide services that are a material income-producing factor. File an amended tax return online Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. File an amended tax return online Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. File an amended tax return online When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. File an amended tax return online However, the time for making contributions for any year is limited. File an amended tax return online See When Can Contributions Be Made , later. File an amended tax return online How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. File an amended tax return online You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. File an amended tax return online You can also open an IRA through your stockbroker. File an amended tax return online Any IRA must meet Internal Revenue Code requirements. File an amended tax return online The requirements for the various arrangements are discussed below. File an amended tax return online Kinds of traditional IRAs. File an amended tax return online   Your traditional IRA can be an individual retirement account or annuity. File an amended tax return online It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. File an amended tax return online Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. File an amended tax return online The account is created by a written document. File an amended tax return online The document must show that the account meets all of the following requirements. File an amended tax return online The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. File an amended tax return online The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. File an amended tax return online However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. File an amended tax return online Contributions, except for rollover contributions, must be in cash. File an amended tax return online See Rollovers , later. File an amended tax return online You must have a nonforfeitable right to the amount at all times. File an amended tax return online Money in your account cannot be used to buy a life insurance policy. File an amended tax return online Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. File an amended tax return online You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. File an amended tax return online See When Must You Withdraw Assets? (Required Minimum Distributions) , later. File an amended tax return online Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. File an amended tax return online An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. File an amended tax return online An individual retirement annuity must meet all the following requirements. File an amended tax return online Your entire interest in the contract must be nonforfeitable. File an amended tax return online The contract must provide that you cannot transfer any portion of it to any person other than the issuer. File an amended tax return online There must be flexible premiums so that if your compensation changes, your payment can also change. File an amended tax return online This provision applies to contracts issued after November 6, 1978. File an amended tax return online The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. File an amended tax return online Distributions must begin by April 1 of the year following the year in which you reach age 70½. File an amended tax return online See When Must You Withdraw Assets? (Required Minimum Distributions) , later. File an amended tax return online Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. File an amended tax return online The bonds have the following features. File an amended tax return online They stop earning interest when you reach age 70½. File an amended tax return online If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. File an amended tax return online You cannot transfer the bonds. File an amended tax return online If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. File an amended tax return online See Age 59½ Rule under Early Distributions, later. File an amended tax return online You can roll over redemption proceeds into IRAs. File an amended tax return online Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. File an amended tax return online Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. File an amended tax return online See Publication 560 for more information about SEPs. File an amended tax return online Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. File an amended tax return online The requirements for individual retirement accounts apply to these traditional IRAs. File an amended tax return online Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. File an amended tax return online However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. File an amended tax return online The disclosure statement must explain certain items in plain language. File an amended tax return online For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. File an amended tax return online This explanation must appear at the beginning of the disclosure statement. File an amended tax return online If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. File an amended tax return online The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. File an amended tax return online These requirements apply to all sponsors. File an amended tax return online How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. File an amended tax return online These limits and rules are explained below. File an amended tax return online Community property laws. File an amended tax return online   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. File an amended tax return online This is the rule even in states with community property laws. File an amended tax return online Brokers' commissions. File an amended tax return online   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. File an amended tax return online For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. File an amended tax return online Trustees' fees. File an amended tax return online   Trustees' administrative fees are not subject to the contribution limit. File an amended tax return online For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. File an amended tax return online Qualified reservist repayments. File an amended tax return online   If you 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 (defined later under Early Distributions) you received. File an amended tax return online 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. File an amended tax return online 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 a similar arrangement. File an amended tax return online Limit. File an amended tax return online   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. File an amended tax return online When repayment contributions can be made. File an amended tax return online   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. File an amended tax return online No deduction. File an amended tax return online   You cannot deduct qualified reservist repayments. File an amended tax return online Reserve component. File an amended tax return online   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. File an amended tax return online Figuring your IRA deduction. File an amended tax return online   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. File an amended tax return online Reporting the repayment. File an amended tax return online   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. File an amended tax return online Example. File an amended tax return online   In 2013, your IRA contribution limit is $5,500. File an amended tax return online However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. File an amended tax return online You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). File an amended tax return online In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. File an amended tax return online   For 2013, you can contribute a total of $8,500 to your IRA. File an amended tax return online This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. File an amended tax return online You contribute the maximum allowable for the year. File an amended tax return online Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. File an amended tax return online The qualified reservist repayment is not deductible. File an amended tax return online Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. File an amended tax return online See chapter 2 for information about Roth IRAs. File an amended tax return online General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. File an amended tax return online Note. File an amended tax return online This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). File an amended tax return online 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. File an amended tax return online (See Nondeductible Contributions , later. File an amended tax return online ) Qualified reservist repayments do not affect this limit. File an amended tax return online Examples. File an amended tax return online George, who is 34 years old and single, earns $24,000 in 2013. File an amended tax return online His IRA contributions for 2013 are limited to $5,500. File an amended tax return online Danny, an unmarried college student working part time, earns $3,500 in 2013. File an amended tax return online His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. File an amended tax return online More than one IRA. File an amended tax return online   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. File an amended tax return online Annuity or endowment contracts. File an amended tax return online   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. File an amended tax return online If more than this amount is contributed, the annuity or endowment contract is disqualified. File an amended tax return online Kay Bailey Hutchison Spousal IRA Limit 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 two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. File an amended tax return online Your spouse's IRA contribution for the year to a traditional IRA. File an amended tax return online Any contributions for the year to a Roth IRA on behalf of your spouse. File an amended tax return online 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 age 50 or older or $13,000 if both of you are age 50 or older). File an amended tax return online Note. File an amended tax return online This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). File an amended tax return online Example. File an amended tax return online Kristin, a full-time student with no taxable compensation, marries Carl during the year. File an amended tax return online Neither of them was age 50 by the end of 2013. File an amended tax return online For the year, Carl has taxable compensation of $30,000. File an amended tax return online He plans to contribute (and deduct) $5,500 to a traditional IRA. File an amended tax return online If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. File an amended tax return online This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. File an amended tax return online In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). File an amended tax return online Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. File an amended tax return online However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. File an amended tax return online See How Much Can You Deduct , later. File an amended tax return online Example. File an amended tax return online Tom and Darcy are married and both are 53. File an amended tax return online They both work and each has a traditional IRA. File an amended tax return online Tom earned $3,800 and Darcy earned $48,000 in 2013. File an amended tax return online Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. File an amended tax return online They can contribute up to $6,500 to Darcy's IRA. File an amended tax return online If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. File an amended tax return online Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. File an amended tax return online Example. File an amended tax return online Rafael, who is 40, earns $30,000 in 2013. File an amended tax return online Although he can contribute up to $5,500 for 2013, he contributes only $3,000. File an amended tax return online After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). File an amended tax return online He cannot contribute $2,500 more than the limit for any later year. File an amended tax return online More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. File an amended tax return online However, a penalty or additional tax may apply. File an amended tax return online See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. File an amended tax return online 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). File an amended tax return online Contributions must be in the form of money (cash, check, or money order). File an amended tax return online Property cannot be contributed. File an amended tax return online Although property cannot be contributed, your IRA may invest in certain property. File an amended tax return online For example, your IRA may purchase shares of stock. File an amended tax return online For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. File an amended tax return online You may be able to transfer or roll over certain property from one retirement plan to another. File an amended tax return online See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . File an amended tax return online You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. File an amended tax return online For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). File an amended tax return online Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. File an amended tax return online For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. File an amended tax return online See Who Can Open a Traditional IRA , earlier. File an amended tax return online Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. File an amended tax return online Contributions can resume for any years that you qualify. File an amended tax return online Contributions must be made by due date. File an amended tax return online   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. File an amended tax return online For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. File an amended tax return online Age 70½ rule. File an amended tax return online   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. File an amended tax return online   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. File an amended tax return online If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. File an amended tax return online Designating year for which contribution is made. File an amended tax return online   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. File an amended tax return online 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). File an amended tax return online Filing before a contribution is made. File an amended tax return online    You can file your return claiming a traditional IRA contribution before the contribution is actually made. File an amended tax return online Generally, the contribution must be made by the due date of your return, not including extensions. File an amended tax return online Contributions not required. File an amended tax return online   You do not have to contribute to your traditional IRA for every tax year, even if you can. File an amended tax return online 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 applicable) explained earlier under How Much Can Be Contributed . File an amended tax return online However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. File an amended tax return online See Limit if Covered by Employer Plan , later. File an amended tax return online You may be able to claim a credit for contributions to your traditional IRA. File an amended tax return online For more information, see chapter 4. File an amended tax return online Trustees' fees. File an amended tax return online   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. File an amended tax return online However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). File an amended tax return online For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. File an amended tax return online Brokers' commissions. File an amended tax return online   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. File an amended tax return online Full deduction. File an amended tax return online   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 of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. File an amended tax return online   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. File an amended tax return online Kay Bailey Hutchison Spousal IRA. File an amended tax return online   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: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. File an amended tax return online The IRA deduction for the year of the spouse with the greater compensation. File an amended tax return online Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. File an amended tax return online Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. File an amended tax return online   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. File an amended tax return online Note. File an amended tax return online 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. File an amended tax return online After a divorce or legal separation, you can deduct only the contributions to your own IRA. File an amended tax return online Your deductions are subject to the rules for single individuals. File an amended tax return online Covered by an employer retirement plan. File an amended tax return online   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. File an amended tax return online This is discussed later under Limit if Covered by Employer Plan . File an amended tax return online Limits on the amount you can deduct do not affect the amount that can be contributed. File an amended tax return online 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. File an amended tax return online The “Retirement Plan” box should be checked if you were covered. File an amended tax return online Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. File an amended tax return online If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. File an amended tax return online Federal judges. File an amended tax return online   For purposes of the IRA deduction, federal judges are covered by an employer plan. File an amended tax return online For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. File an amended tax return online These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. File an amended tax return online Tax year. File an amended tax return online   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. File an amended tax return online For almost all people, the tax year is the calendar year. File an amended tax return online Defined contribution plan. File an amended tax return online   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. File an amended tax return online However, also see Situations in Which You Are Not Covered , later. File an amended tax return online   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. File an amended tax return online In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. File an amended tax return online The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. File an amended tax return online Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. File an amended tax return online Example. File an amended tax return online Company A has a money purchase pension plan. File an amended tax return online Its plan year is from July 1 to June 30. File an amended tax return online The plan provides that contributions must be allocated as of June 30. File an amended tax return online Bob, an employee, leaves Company A on December 31, 2012. File an amended tax return online The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. File an amended tax return online Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. File an amended tax return online   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. File an amended tax return online If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. File an amended tax return online If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. File an amended tax return online Example. File an amended tax return online Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. File an amended tax return online The plan year runs from July 1 to June 30. File an amended tax return online Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. File an amended tax return online Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. File an amended tax return online As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. File an amended tax return online In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. File an amended tax return online On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. File an amended tax return online That contribution was made on February 15, 2014. File an amended tax return online Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. File an amended tax return online No vested interest. File an amended tax return online   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. File an amended tax return online Defined benefit plan. File an amended tax return online   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. File an amended tax return online 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. File an amended tax return online   A defined benefit plan is any plan that is not a defined contribution plan. File an amended tax return online In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. File an amended tax return online The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. File an amended tax return online Defined benefit plans include pension plans and annuity plans. File an amended tax return online Example. File an amended tax return online Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. File an amended tax return online Nick leaves Company B on December 31, 2012. File an amended tax return online Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. File an amended tax return online No vested interest. File an amended tax return online   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. File an amended tax return online Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. File an amended tax return online Social security or railroad retirement. File an amended tax return online   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. File an amended tax return online Benefits from previous employer's plan. File an amended tax return online   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. File an amended tax return online Reservists. File an amended tax return online   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. File an amended tax return online You are not covered by the plan if both of the following conditions are met. File an amended tax return online 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. File an amended tax return online You did not serve more than 90 days on active duty during the year (not counting duty for training). File an amended tax return online Volunteer firefighters. File an amended tax return online   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. File an amended tax return online You are not covered by the plan if both of the following conditions are met. File an amended tax return online 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. File an amended tax return online Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. File an amended tax return online Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. File an amended tax return online Your deduction is also affected by how much income you had and by your filing status. File an amended tax return online Your deduction may also be affected by social security benefits you received. File an amended tax return online Reduced or no deduction. File an amended tax return online   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. File an amended tax return online   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. File an amended tax return online These amounts vary depending on your filing status. File an amended tax return online   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . File an amended tax return online Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. File an amended tax return online Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. File an amended tax return online You received social security benefits. File an amended tax return online You received taxable compensation. File an amended tax return online Contributions were made to your traditional IRA. File an amended tax return online You or your spouse was covered by an employer retirement plan. File an amended tax return online Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. File an amended tax return online Appendix B includes an example with filled-in worksheets to assist you. File an amended tax return online Table 1-2. File an amended tax return online Effect of Modified AGI1 on Deduction if You Are Covered by a 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. File an amended tax return online IF your filing status is . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your modified adjusted gross income (modified AGI) is . File an amended tax return online . File an amended tax return online . File an amended tax return online THEN you can take . File an amended tax return online . File an amended tax return online . File an amended tax return online single or head of household $59,000 or less a full deduction. File an amended tax return online more than $59,000 but less than $69,000 a partial deduction. File an amended tax return online $69,000 or more no deduction. File an amended tax return online married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. File an amended tax return online more than $95,000 but less than $115,000 a partial deduction. File an amended tax return online $115,000 or more no deduction. File an amended tax return online married filing separately2 less than $10,000 a partial deduction. File an amended tax return online $10,000 or more no deduction. File an amended tax return online 1 Modified AGI (adjusted gross income). File an amended tax return online See Modified adjusted gross income (AGI) , later. File an amended tax return online  2 If 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” filing status). File an amended tax return online Table 1-3. File an amended tax return online Effect of Modified AGI1 on Deduction if You Are NOT Covered by a 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. File an amended tax return online IF your filing status is . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your modified adjusted gross income (modified AGI) is . File an amended tax return online . File an amended tax return online . File an amended tax return online THEN you can take . File an amended tax return online . File an amended tax return online . File an amended tax return online single, head of household, or qualifying widow(er) any amount a full deduction. File an amended tax return online married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. File an amended tax return online married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. File an amended tax return online more than $178,000 but less than $188,000 a partial deduction. File an amended tax return online $188,000 or more no deduction. File an amended tax return online married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. File an amended tax return online $10,000 or more no deduction. File an amended tax return online 1 Modified AGI (adjusted gross income). File an amended tax return online See Modified adjusted gross income (AGI) , later. File an amended tax return online  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. File an amended tax return online For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. File an amended tax return online If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. File an amended tax return online Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. File an amended tax return online Covered by a retirement plan. File an amended tax return online   If you are 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 1-2. File an amended tax return online For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. File an amended tax return online If your spouse is covered. File an amended tax return online   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 1-3. File an amended tax return online Filing status. File an amended tax return online   Your filing status depends primarily on your marital status. File an amended tax return online 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. File an amended tax return online If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. File an amended tax return online Lived apart from spouse. File an amended tax return online   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. File an amended tax return online Modified adjusted gross income (AGI). File an amended tax return online   You can use Worksheet 1-1 to figure your modified AGI. File an amended tax return online If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. File an amended tax return online    Do not assume that your modified AGI is the same as your compensation. File an amended tax return online Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. File an amended tax return online Form 1040. File an amended tax return online   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File an amended tax return online IRA deduction. File an amended tax return online Student loan interest deduction. File an amended tax return online Tuition and fees deduction. File an amended tax return online Domestic production activities deduction. File an amended tax return online Foreign earned income exclusion. File an amended tax return online Foreign housing exclusion or deduction. File an amended tax return online Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return online Exclusion of employer-provided adoption benefits shown on Form 8839. File an amended tax return online This is your modified AGI. File an amended tax return online Form 1040A. File an amended tax return online   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. File an amended tax return online IRA deduction. File an amended tax return online Student loan interest deduction. File an amended tax return online Tuition and fees deduction. File an amended tax return online Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return online This is your modified AGI. File an amended tax return online Form 1040NR. File an amended tax return online   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File an amended tax return online IRA deduction. File an amended tax return online Student loan interest deduction. File an amended tax return online Domestic production activities deduction. File an amended tax return online Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return online Exclusion of employer-provided adoption benefits shown on Form 8839. File an amended tax return online This is your modified AGI. File an amended tax return online Income from IRA distributions. File an amended tax return online   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. File an amended tax return online Both contributions for 2013 and distributions in 2013. File an amended tax return online   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. File an amended tax return online You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. File an amended tax return online (See Nondeductible Contributions and Worksheet 1-2, later. File an amended tax return online ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. File an amended tax return online To do this, you can use Worksheet 1-5, later. File an amended tax return online   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. File an amended tax return online How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013. File an amended tax return online The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. File an amended tax return online If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. File an amended tax return online Note. File an amended tax return online If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return online Worksheet 1-1. File an amended tax return online Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. File an amended tax return online 1. File an amended tax return online Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. File an amended tax return online   2. File an amended tax return online Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. File an amended tax return online   3. File an amended tax return online Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. File an amended tax return online   4. File an amended tax return online Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. File an amended tax return online   5. File an amended tax return online Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. File an amended tax return online   6. File an amended tax return online Enter any foreign housing deduction from Form 2555, line 50 6. File an amended tax return online   7. File an amended tax return online Enter any excludable savings bond interest from Form 8815, line 14 7. File an amended tax return online   8. File an amended tax return online Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. File an amended tax return online   9. File an amended tax return online Add lines 1 through 8. File an amended tax return online This is your Modified AGI for traditional IRA purposes 9. File an amended tax return online   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. File an amended tax return online If you file Form 1040A, enter your IRA deduction on line 17 of that form. File an amended tax return online If you file Form 1040NR, enter your IRA deduction on line 32 of that form. File an amended tax return online You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. File an amended tax return online Self-employed. File an amended tax return online   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. File an amended tax return online If you file Form 1040NR, enter your deduction on line 28 of that form. File an amended tax return online Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. File an amended tax return online The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. File an amended tax return online Example. File an amended tax return online Tony is 29 years old and single. File an amended tax return online In 2013, he was covered by a retirement plan at work. File an amended tax return online His salary is $62,000. File an amended tax return online His modified AGI is $70,000. File an amended tax return online Tony makes a $5,500 IRA contribution for 2013. File an amended tax return online Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. File an amended tax return online He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. File an amended tax return online Repayment of reservist distributions. File an amended tax return online   Nondeductible contributions may include repayments of qualified reservist distributions. File an amended tax return online For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. File an amended tax return online Form 8606. File an amended tax return online   To designate contributions as nondeductible, you must file Form 8606. File an amended tax return online (See the filled-in Forms 8606 in this chapter. File an amended tax return online )   You do not have to designate a contribution as nondeductible until you file your tax return. File an amended tax return online When you file, you can even designate otherwise deductible contributions as nondeductible contributions. File an amended tax return online   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. File an amended tax return online    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. File an amended tax return online In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. File an amended tax return online See Form 8606 under Distributions Fully or Partly Taxable, later. File an amended tax return online Failure to report nondeductible contributions. File an amended tax return online   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. File an amended tax return online All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. File an amended tax return online Penalty for overstatement. File an amended tax return online   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. File an amended tax return online Penalty for failure to file Form 8606. File an amended tax return online   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. File an amended tax return online Tax on earnings on nondeductible contributions. File an amended tax return online   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. File an amended tax return online Cost basis. File an amended tax return online   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. File an amended tax return online Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. File an amended tax return online    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. File an amended tax return online See Are Distributions Taxable, later, for more information. File an amended tax return online Recordkeeping. File an amended tax return online There is a recordkeeping worksheet, Appendix A. File an amended tax return online Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. File an amended tax return online Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. File an amended tax return online Example 1. File an amended tax return online For 2013, Tom and Betty file a joint return on Form 1040. File an amended tax return online They are both 39 years old. File an amended tax return online They are both employed and Tom is covered by his employer's retirement plan. File an amended tax return online Tom's salary is $59,000 and Betty's is $32,555. File an amended tax return online They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. File an amended tax return online Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . File an amended tax return online For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. File an amended tax return online Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. File an amended tax return online Tom can take a deduction of only $5,080. File an amended tax return online He can choose to treat the $5,080 as either deductible or nondeductible contributions. File an amended tax return online He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. File an amended tax return online He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. File an amended tax return online Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. File an amended tax return online Betty figures her IRA deduction as follows. File an amended tax return online Betty can treat all or part of her contributions as either deductible or nondeductible. File an amended tax return online This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . File an amended tax return online She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. File an amended tax return online Betty decides to treat her $5,500 IRA contributions as deductible. File an amended tax return online The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. File an amended tax return online Example 2. File an amended tax return online For 2013, Ed and Sue file a joint return on Form 1040. File an amended tax return online They are both 39 years old. File an amended tax return online Ed is covered by his employer's retirement plan. File an amended tax return online Ed's salary is $45,000. File an amended tax return online Sue had no compensation for the year and did not contribute to an IRA. File an amended tax return online Sue is not covered by an employer plan. File an amended tax return online Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). File an amended tax return online Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. File an amended tax return online Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. File an amended tax return online He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. File an amended tax return online Sue figures her IRA deduction as shown on Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. File an amended tax return online Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return online ) Note. File an amended tax return online If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return online IF you . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your  filing status is . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your modified AGI is over . File an amended tax return online . File an amended tax return online . File an amended tax return online THEN enter on  line 1 below . File an amended tax return online . File an amended tax return online . File an amended tax return online       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return online Enter applicable amount from table above 1. File an amended tax return online   2. File an amended tax return online Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return online     Note. File an amended tax return online If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return online  Your IRA contributions are not deductible. File an amended tax return online See Nondeductible Contributions , earlier. File an amended tax return online     3. File an amended tax return online Subtract line 2 from line 1. File an amended tax return online If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return online You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return online   4. File an amended tax return online Multiply line 3 by the percentage below that applies to you. File an amended tax return online If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return online (For example, $611. File an amended tax return online 40 is rounded to $620. File an amended tax return online ) However, if the result is less than $200, enter $200. File an amended tax return online         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return online 5% (. File an amended tax return online 275) (by 32. File an amended tax return online 5% (. File an amended tax return online 325) if you are age 50 or older). File an amended tax return online All others, multiply line 3 by 55% (. File an amended tax return online 55) (by 65% (. File an amended tax return online 65) if you are age 50 or older). File an amended tax return online 4. File an amended tax return online   5. File an amended tax return online Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return online If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return online If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return online   6. File an amended tax return online Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return online If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return online 6. File an amended tax return online   7. File an amended tax return online IRA deduction. File an amended tax return online Compare lines 4, 5, and 6. File an amended tax return online Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return online If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return online   8. File an amended tax return online Nondeductible contribution. File an amended tax return online Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return online  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return online   Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return online ) Note. File an amended tax return online If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return online IF you . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your  filing status is . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your modified AGI is over . File an amended tax return online . File an amended tax return online . File an amended tax return online THEN enter on  line 1 below . File an amended tax return online . File an amended tax return online . File an amended tax return online       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return online Enter applicable amount from table above 1. File an amended tax return online 115,000 2. File an amended tax return online Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return online 96,555   Note. File an amended tax return online If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return online  Your IRA contributions are not deductible. File an amended tax return online See Nondeductible Contributions , earlier. File an amended tax return online     3. File an amended tax return online Subtract line 2 from line 1. File an amended tax return online If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return online You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return online 18,445 4. File an amended tax return online Multiply line 3 by the percentage below that applies to you. File an amended tax return online If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return online (For example, $611. File an amended tax return online 40 is rounded to $620. File an amended tax return online ) However, if the result is less than $200, enter $200. File an amended tax return online         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return online 5% (. File an amended tax return online 275) (by 32. File an amended tax return online 5% (. File an amended tax return online 325) if you are age 50 or older). File an amended tax return online All others, multiply line 3 by 55% (. File an amended tax return online 55) (by 65% (. File an amended tax return online 65) if you are age 50 or older). File an amended tax return online 4. File an amended tax return online 5,080 5. File an amended tax return online Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return online If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return online If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return online 59,000 6. File an amended tax return online Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return online If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return online 6. File an amended tax return online 5,500 7. File an amended tax return online IRA deduction. File an amended tax return online Compare lines 4, 5, and 6. File an amended tax return online Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return online If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return online 5,080 8. File an amended tax return online Nondeductible contribution. File an amended tax return online Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return online  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return online 420 Worksheet 1-2. File an amended tax return online Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return online ) Note. File an amended tax return online If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return online IF you . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your  filing status is . File an amended tax return online . File an amended tax return online . File an amended tax return online AND your modified AGI is over . File an amended tax return online . File an amended tax return online . File an amended tax return online THEN enter on  line 1 below . File an amended tax return online . File an amended tax return online . File an amended tax return online       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return online Enter applicable amount from table above 1. File an amended tax return online 188,000 2. File an amended tax return online Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return online 180,555   Note. File an amended tax return online If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return online  Your IRA contributions are not deductible. File an amended tax return online See Nondeductible Contributions , earlier. File an amended tax return online     3. File an amended tax return online Subtract line 2 from line 1. File an amended tax return online If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return online You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return online 7,445 4. File an amended tax return online Multiply line 3 by the percentage below that applies to you. File an amended tax return online If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return online (For example, $611. File an amended tax return online 40 is rounded to $620. File an amended tax return online ) However, if the result is less than $200, enter $200. File an amended tax return online         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return online 5% (. File an amended tax return online 275) (by 32. File an amended tax return online 5% (. File an amended tax return online 325) if you are age 50 or older). File an amended tax return online All others, multiply line 3 by 55% (. File an amended tax return online 55) (by 65% (. File an amended tax return online 65) if you are age 50 or older). File an amended tax return online 4. File an amended tax return online 4,100 5. File an amended tax return online Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return online If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return online If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return online 39,500 6. File an amended tax return online Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return online If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return online 6. File an amended tax return online 5,500 7. File an amended tax return online IRA deduction. File an amended tax return online Compare lines 4, 5, and 6. File an amended tax return online Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return online If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return online 4,100 8. File an amended tax return online Nondeductible contribution. File an amended tax return online Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return online  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return online 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. File an amended tax return online A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. File an amended tax return online Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. File an amended tax return online Inherited from spouse. File an amended tax return online   If you inherit a traditional IRA from your spouse, you generally have the following three choices. File an amended tax return online You can: Treat it as your own IRA by designating yourself as the account owner. File an amended tax return online 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 (s