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My 1040ez

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My 1040ez

My 1040ez 2. My 1040ez   Roth IRAs Table of Contents What's New for 2013 What's New for 2014 Reminders Introduction What Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA?How Much Can Be Contributed? When Can You Make Contributions? What if You Contribute Too Much? Can You Move Amounts Into a Roth IRA?Conversions Rollover From Employer's Plan Into a Roth IRA Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Rollover From a Roth IRA Rollover of Exxon Valdez Settlement Income Rollover of Airline Payments Are Distributions Taxable?What Are Qualified Distributions? Additional Tax on Early Distributions Ordering Rules for Distributions How Do You Figure the Taxable Part? Must You Withdraw or Use Assets?Minimum distributions. My 1040ez Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. My 1040ez  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. My 1040ez If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. My 1040ez However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. My 1040ez For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. My 1040ez Modified AGI limit for Roth IRA contributions increased. My 1040ez  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. My 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. My 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. My 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. My 1040ez See Can You Contribute to a Roth IRA? in this chapter. My 1040ez Net Investment Income Tax. My 1040ez  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). My 1040ez However, these distributions are taken into account when determining the modified adjusted gross income threshold. My 1040ez Distributions from a nonqualified retirement plan are included in net investment income. My 1040ez See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. My 1040ez What's New for 2014 Modified AGI limit for Roth IRA contributions increased. My 1040ez  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. My 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. My 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2014 and your modified AGI is at least $114,000. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. My 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. My 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. My 1040ez Reminders Deemed IRAs. My 1040ez  For plan years beginning after 2002, a qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. My 1040ez If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. My 1040ez An employee's account can be treated as a traditional IRA or a Roth IRA. My 1040ez For this purpose, a “qualified employer plan” includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), A tax-sheltered annuity plan (section 403(b) plan), and A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. My 1040ez Designated Roth accounts. My 1040ez  Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. My 1040ez These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. My 1040ez Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. My 1040ez Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. My 1040ez A contribution to one does not impact your eligibility to contribute to the other. My 1040ez See Publication 575, for more information on designated Roth accounts. My 1040ez Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. My 1040ez Contributions not reported. My 1040ez   You do not report Roth IRA contributions on your return. My 1040ez What Is a Roth IRA? A Roth IRA is an individual retirement plan that, except as explained in this chapter, is subject to the rules that apply to a traditional IRA (defined next). My 1040ez It can be either an account or an annuity. My 1040ez Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. My 1040ez To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. My 1040ez A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. My 1040ez Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. My 1040ez But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. My 1040ez Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live. My 1040ez Traditional IRA. My 1040ez   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. My 1040ez Traditional IRAs are discussed in chapter 1. My 1040ez When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. My 1040ez However, the time for making contributions for any year is limited. My 1040ez See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. My 1040ez Can You Contribute to a Roth IRA? Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: $188,000 for married filing jointly or qualifying widow(er), $127,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, and $10,000 for married filing separately and you lived with your spouse at any time during the year. My 1040ez You may be able to claim a credit for contributions to your Roth IRA. My 1040ez For more information, see chapter 4. My 1040ez Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. My 1040ez Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000. My 1040ez Compensation. My 1040ez   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. My 1040ez It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. My 1040ez For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. My 1040ez Modified AGI. My 1040ez   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. My 1040ez Use Worksheet 2-1 , later, to determine your modified AGI. My 1040ez    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. My 1040ez Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. My 1040ez How Much Can Be Contributed? The contribution limit for Roth IRAs generally depends on whether contributions are made only to Roth IRAs or to both traditional IRAs and Roth IRAs. My 1040ez Worksheet 2-1. My 1040ez Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. My 1040ez 1. My 1040ez Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. My 1040ez   2. My 1040ez Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, line 11b, or Form 1040NR, line 16b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 1040A, line 12b, or Form 1040NR, line 17b) 2. My 1040ez   3. My 1040ez Subtract line 2 from line 1 3. My 1040ez   4. My 1040ez Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. My 1040ez   5. My 1040ez Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. My 1040ez   6. My 1040ez Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. My 1040ez   7. My 1040ez Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. My 1040ez   8. My 1040ez Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. My 1040ez   9. My 1040ez Enter any foreign housing deduction from Form 2555, line 50 9. My 1040ez   10. My 1040ez Enter any excludable qualified savings bond interest from Form 8815, line 14 10. My 1040ez   11. My 1040ez Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. My 1040ez   12. My 1040ez Add the amounts on lines 3 through 11 12. My 1040ez   13. My 1040ez Enter: $188,000 if married filing jointly or qualifying widow(er), $10,000 if married filing separately and you lived with your spouse at any time during the year, or $127,000 for all others 13. My 1040ez   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. My 1040ez  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. My 1040ez       Note. My 1040ez If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. My 1040ez (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. My 1040ez ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. My 1040ez If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above. My 1040ez Roth IRAs only. My 1040ez   If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation. My 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . My 1040ez Roth IRAs and traditional IRAs. My 1040ez   If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. My 1040ez Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. My 1040ez   This means that your contribution limit is the lesser of: $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. My 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . My 1040ez   Simplified employee pensions (SEPs) are discussed in Publication 560. My 1040ez Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. My 1040ez Repayment of reservist distributions. My 1040ez   You can repay qualified reservist distributions even if the repayments would cause your total contributions to the Roth IRA to be more than the general limit on contributions. My 1040ez However, the total repayments cannot be more than the amount of your distribution. My 1040ez Note. My 1040ez If you make repayments of qualified reservist distributions to a Roth IRA, increase your basis in the Roth IRA by the amount of the repayment. My 1040ez For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. My 1040ez Contribution limit reduced. My 1040ez   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. My 1040ez Use Table 2-1, later, to determine if this reduction applies to you. My 1040ez Table 2-1. My 1040ez Effect of Modified AGI on Roth IRA Contribution This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross income (modified AGI). My 1040ez IF you have taxable compensation and your filing status is . My 1040ez . My 1040ez . My 1040ez AND your modified AGI is . My 1040ez . My 1040ez . My 1040ez THEN . My 1040ez . My 1040ez . My 1040ez married filing jointly or  qualifying widow(er) less than $178,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . My 1040ez at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . My 1040ez $188,000 or more you cannot contribute to a Roth IRA. My 1040ez married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . My 1040ez more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . My 1040ez $10,000 or more you cannot contribute to a Roth IRA. My 1040ez single, head of household,  or married filing separately and you did not live with your spouse at any time during the year less than $112,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . My 1040ez at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . My 1040ez $127,000 or more you cannot contribute to a Roth IRA. My 1040ez Figuring the reduction. My 1040ez   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. My 1040ez Worksheet 2-2. My 1040ez Determining Your Reduced Roth IRA Contribution Limit Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. My 1040ez If it is, use this worksheet to determine how much it is reduced. My 1040ez 1. My 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. My 1040ez   2. My 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. My 1040ez   3. My 1040ez Subtract line 2 from line 1 3. My 1040ez   4. My 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. My 1040ez   5. My 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). My 1040ez If the result is 1. My 1040ez 000 or more, enter 1. My 1040ez 000 5. My 1040ez   6. My 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. My 1040ez   7. My 1040ez Multiply line 5 by line 6 7. My 1040ez   8. My 1040ez Subtract line 7 from line 6. My 1040ez Round the result up to the nearest $10. My 1040ez If the result is less than $200, enter $200 8. My 1040ez   9. My 1040ez Enter contributions for the year to other IRAs 9. My 1040ez   10. My 1040ez Subtract line 9 from line 6 10. My 1040ez   11. My 1040ez Enter the lesser of line 8 or line 10. My 1040ez This is your reduced Roth IRA contribution limit 11. My 1040ez      Round your reduced contribution limit up to the nearest $10. My 1040ez If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. My 1040ez Example. My 1040ez You are a 45-year-old, single individual with taxable compensation of $113,000. My 1040ez You want to make the maximum allowable contribution to your Roth IRA for 2013. My 1040ez Your modified AGI for 2013 is $113,000. My 1040ez You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. My 1040ez You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. My 1040ez Example—Illustrated, later. My 1040ez   Worksheet 2-2. My 1040ez Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. My 1040ez If it is, use this worksheet to determine how much it is reduced. My 1040ez 1. My 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. My 1040ez 113,000 2. My 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. My 1040ez 112,000 3. My 1040ez Subtract line 2 from line 1 3. My 1040ez 1,000 4. My 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. My 1040ez 15,000 5. My 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). My 1040ez If the result is 1. My 1040ez 000 or more, enter 1. My 1040ez 000 5. My 1040ez . My 1040ez 067 6. My 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. My 1040ez 5,500 7. My 1040ez Multiply line 5 by line 6 7. My 1040ez 369 8. My 1040ez Subtract line 7 from line 6. My 1040ez Round the result up to the nearest $10. My 1040ez If the result is less than $200, enter $200 8. My 1040ez 5,140 9. My 1040ez Enter contributions for the year to other IRAs 9. My 1040ez 0 10. My 1040ez Subtract line 9 from line 6 10. My 1040ez 5,500 11. My 1040ez Enter the lesser of line 8 or line 10. My 1040ez This is your reduced Roth IRA contribution limit 11. My 1040ez 5,140 When Can You Make Contributions? You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions). My 1040ez You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. My 1040ez This means that most people can make contributions for 2013 by April 15, 2014. My 1040ez What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. My 1040ez Excess contributions. My 1040ez   These are the contributions to your Roth IRAs for a year that equal the total of: Amounts contributed for the tax year to your Roth IRAs (other than amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement plan, as described later) that are more than your contribution limit for the year (explained earlier under How Much Can Be Contributed? ), plus Any excess contributions for the preceding year, reduced by the total of: Any distributions out of your Roth IRAs for the year, plus Your contribution limit for the year minus your contributions to all your IRAs for the year. My 1040ez Withdrawal of excess contributions. My 1040ez   For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. My 1040ez This treatment only applies if any earnings on the contributions are also withdrawn. My 1040ez The earnings are considered earned and received in the year the excess contribution was made. My 1040ez   If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still have the contribution returned to you within 6 months of the due date of your 2013 tax return, excluding extensions. My 1040ez If you do, file an amended return with “Filed pursuant to section 301. My 1040ez 9100-2” written at the top. My 1040ez Report any related earnings on the amended return and include an explanation of the withdrawal. My 1040ez Make any other necessary changes on the amended return. My 1040ez Applying excess contributions. My 1040ez    If contributions to your Roth 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. My 1040ez Can You Move Amounts Into a Roth IRA? You may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. My 1040ez You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. My 1040ez You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. My 1040ez You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. My 1040ez Conversions You can convert a traditional IRA to a Roth IRA. My 1040ez The conversion is treated as a rollover, regardless of the conversion method used. My 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. My 1040ez However, the 1-year waiting period does not apply. My 1040ez Conversion methods. My 1040ez   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. My 1040ez Rollover. My 1040ez You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. My 1040ez Trustee-to-trustee transfer. My 1040ez You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. My 1040ez Same trustee transfer. My 1040ez If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. My 1040ez Same trustee. My 1040ez   Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issuing a new contract. My 1040ez Income. My 1040ez   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. My 1040ez These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. My 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. My 1040ez See Publication 505, Tax Withholding and Estimated Tax. My 1040ez More information. My 1040ez   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. My 1040ez Rollover From Employer's Plan Into a Roth IRA You can roll over into a Roth IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan); Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). My 1040ez Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. My 1040ez See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. My 1040ez Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. My 1040ez Rollover methods. My 1040ez   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. My 1040ez Rollover. My 1040ez You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. My 1040ez Since the distribution is paid directly to you, the payer generally must withhold 20% of it. My 1040ez Direct rollover option. My 1040ez Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a Roth IRA. My 1040ez Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. My 1040ez Rollover by nonspouse beneficiary. My 1040ez   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans listed above into a Roth IRA. My 1040ez You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. My 1040ez   You will determine your required minimum distributions in years after you make the rollover based on whether the employee died before his or her required beginning date for taking distributions from the plan. My 1040ez For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. My 1040ez Income. My 1040ez   You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. My 1040ez You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions (after-tax contributions) to the plan that were taxable to you when paid. My 1040ez These amounts are normally included in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA. My 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. My 1040ez See Publication 505, Tax Withholding and Estimated Tax. My 1040ez For more information on eligible rollover distributions from qualified retirement plans and withholding, see Rollover From Employer's Plan Into an IRA in chapter 1. My 1040ez Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments If you received a military death gratuity or SGLI payment with respect to a death from injury that occurred after October 6, 2001, you can contribute (roll over) all or part of the amount received to your Roth IRA. My 1040ez The contribution is treated as a qualified rollover contribution. My 1040ez The amount you can roll over to your Roth IRA cannot exceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. My 1040ez Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. My 1040ez The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. My 1040ez The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. My 1040ez Rollover From a Roth IRA You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA. My 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. My 1040ez However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. My 1040ez A rollover from a Roth IRA to an employer retirement plan is not allowed. My 1040ez A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. My 1040ez If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions does not change. My 1040ez The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. My 1040ez See What are Qualified Distributions , later. My 1040ez Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. My 1040ez The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. My 1040ez Qualified settlement income that is contributed to a Roth IRA, or to a designated Roth account, will be: Included in your taxable income for the year the qualified settlement income was received, and Treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. My 1040ez For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. My 1040ez Rollover of Airline Payments If you are a qualified airline employee (defined next), you may contribute any portion of an airline payment (defined below) you receive to a Roth IRA. My 1040ez The contribution must be made within 180 days from the date you received the payment. My 1040ez The contribution will be treated as a qualified rollover contribution. My 1040ez The rollover contribution is included in income to the extent it would be included in income if it were not part of the rollover contribution. My 1040ez Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can contribute to your Roth IRA. My 1040ez Qualified airline employee. My 1040ez    A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act of 2006. My 1040ez These provisions also apply to surviving spouses of qualified airline employees. My 1040ez Airline payment. My 1040ez    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. My 1040ez The payment also must be made both: Under the approval of an order of federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and In respect of the qualified airline employee’s interest in a bankruptcy claim against the airline carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. My 1040ez Any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can roll over to your traditional IRA. My 1040ez Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. My 1040ez Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). My 1040ez You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. My 1040ez You may have to include part of other distributions in your income. My 1040ez See Ordering Rules for Distributions , later. My 1040ez Basis of distributed property. My 1040ez   The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution. My 1040ez Withdrawals of contributions by due date. My 1040ez   If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. My 1040ez If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. My 1040ez The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions. My 1040ez What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. My 1040ez It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit). My 1040ez Additional Tax on Early Distributions If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs. My 1040ez Distributions of conversion and certain rollover contributions within 5-year period. My 1040ez   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. My 1040ez You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). My 1040ez A separate 5-year period applies to each conversion and rollover. My 1040ez See Ordering Rules for Distributions , later, to determine the recapture amount, if any. My 1040ez   The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. My 1040ez See What Are Qualified Distributions , earlier. My 1040ez   For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a regular contribution for 2012 on the same date, the 5-year period for the conversion begins January 1, 2013, while the 5-year period for the regular contribution begins on January 1, 2012. My 1040ez   Unless one of the exceptions listed later applies, you must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover contribution that you had to include in income because of the conversion or rollover. My 1040ez   You must pay the 10% additional tax in the year of the distribution, even if you had included the conversion or rollover contribution in an earlier year. My 1040ez You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. My 1040ez Other early distributions. My 1040ez   Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that are not qualified distributions. My 1040ez Exceptions. My 1040ez   You may not have to pay the 10% additional tax in the following situations. My 1040ez You have reached age 59½. My 1040ez You are totally and permanently disabled. My 1040ez You are the beneficiary of a deceased IRA owner. My 1040ez You use the distribution to buy, build, or rebuild a first home. My 1040ez The distributions are part of a series of substantially equal payments. My 1040ez You have unreimbursed medical expenses that are more than 10% (or 7. My 1040ez 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. My 1040ez You are paying medical insurance premiums during a period of unemployment. My 1040ez The distributions are not more than your qualified higher education expenses. My 1040ez The distribution is due to an IRS levy of the qualified plan. My 1040ez The distribution is a qualified reservist distribution. My 1040ez Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . My 1040ez Please click here for the text description of the image. My 1040ez Is Roth Distributions a Qualified Distribution? Ordering Rules for Distributions If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. My 1040ez There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA. My 1040ez For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). My 1040ez Order the distributions as follows. My 1040ez Regular contributions. My 1040ez Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). My 1040ez See Aggregation (grouping and adding) rules, later. My 1040ez Take these conversion and rollover contributions into account as follows: Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the Nontaxable portion. My 1040ez Earnings on contributions. My 1040ez Disregard rollover contributions from other Roth IRAs for this purpose. My 1040ez Aggregation (grouping and adding) rules. My 1040ez   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. My 1040ez Add all distributions from all your Roth IRAs during the year together. My 1040ez Add all regular contributions made for the year (including contributions made after the close of the year, but before the due date of your return) together. My 1040ez Add this total to the total undistributed regular contributions made in prior years. My 1040ez Add all conversion and rollover contributions made during the year together. My 1040ez For purposes of the ordering rules, in the case of any conversion or rollover in which the conversion or rollover distribution is made in 2013 and the conversion or rollover contribution is made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or rollover contributions made in 2014. My 1040ez Add any recharacterized contributions that end up in a Roth IRA to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. My 1040ez   Disregard any recharacterized contribution that ends up in an IRA other than a Roth IRA for the purpose of grouping (aggregating) both contributions and distributions. My 1040ez Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. My 1040ez Example. My 1040ez On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. My 1040ez His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. My 1040ez Justin included $60,000 ($80,000 − $20,000) in his gross income. My 1040ez On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. My 1040ez On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. My 1040ez The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. My 1040ez The next $2,000 of the distribution is not includible in income because it was included previously. My 1040ez Figuring your recapture amount. My 1040ez   If you had an early distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture Amount—Allocation Chart, later. My 1040ez Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19   Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. My 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). My 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. My 1040ez Note. My 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. My 1040ez See the Example , earlier. My 1040ez Tax Year Your Form 2013 Form 8606, line 20   Form 8606, line 22   1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18   Form 8606, line 17   2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. My 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. My 1040ez Amount to include on Form 5329, line 1. My 1040ez   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. My 1040ez The amount you allocated to line 20 of your 2013 Form 8606. My 1040ez The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. My 1040ez The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. My 1040ez The amount from your 2013 Form 8606, line 25. My 1040ez   Also, include any amount you allocated to line 20 of your 2013 Form 8606 on your 2013 Form 5329, line 2, and enter exception number 09. My 1040ez Example. My 1040ez Ishmael, age 32, opened a Roth IRA in 2000. My 1040ez He made the maximum contributions to it every year. My 1040ez In addition, he made the following transactions into his Roth IRA. My 1040ez In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. My 1040ez He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. My 1040ez He entered $0 on line 17 of Form 8606 because he took a deduction for all the contributions to the traditional IRA, therefore he has no basis. My 1040ez He entered $10,000 on line 18 of Form 8606. My 1040ez In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. My 1040ez He used a 2011 Form 1040 to file his taxes. My 1040ez He entered $20,000 on line 16a of Form 1040 because that was the amount reported in box 1 of his 2011 Form 1099-R. My 1040ez Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. My 1040ez He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. My 1040ez The total balance in his Roth IRA as of January 1, 2013 was $105,000 ($50,000 in contributions from 2000 through 2012 + $10,000 from the 2005 conversion + $20,000 from the 2011 rollover + $25,000 from earnings). My 1040ez He has not taken any early distribution from his Roth IRA before 2013. My 1040ez In 2013, he made the maximum contribution of $5,500 to his Roth IRA. My 1040ez In August of 2013, he took a $85,500 early distribution from his Roth IRA to use as a down payment on the purchase of his first home. My 1040ez See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. My 1040ez Based on his allocation, he would enter $20,000 on his 2013 Form 5329, line 1 (see Amount to include on Form 5329, line 1 , above). My 1040ez He should also report $10,000 on his 2013 Form 5329, line 2, and enter exception 09 since that amount is not subject to the 10% additional tax on early distributions. My 1040ez Illustrated Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19 $85,500 Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. My 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). My 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. My 1040ez Note. My 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. My 1040ez See the Example , earlier. My 1040ez Tax Year Your Form 2013 Form 8606, line 20 $10,000 Form 8606, line 22 $55,500 1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18 $10,000 Form 8606, line 17 $-0- 2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* $10,000 Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. My 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. My 1040ez How Do You Figure the Taxable Part? To figure the taxable part of a distribution that is not a qualified distribution, complete Form 8606, Part III. My 1040ez Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. My 1040ez The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. My 1040ez However, after the death of a Roth IRA owner, certain of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs as explained later under Distributions After Owner's Death . My 1040ez Minimum distributions. My 1040ez   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. My 1040ez Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. My 1040ez See Distributions to beneficiaries , later. My 1040ez Recognizing Losses on Investments If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less than your unrecovered basis. My 1040ez Your basis is the total amount of contributions in your Roth IRAs. My 1040ez You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions on Schedule A (Form 1040). My 1040ez Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. My 1040ez Distributions After Owner's Death If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date. My 1040ez See When Can You Withdraw or Use Assets? in chapter 1. My 1040ez Distributions to beneficiaries. My 1040ez   Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary. My 1040ez (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. My 1040ez )   If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. My 1040ez Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. My 1040ez   If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70½ or treat the Roth IRA as his or her own. My 1040ez Combining with other Roth IRAs. My 1040ez   A beneficiary can combine an inherited Roth IRA with another Roth IRA maintained by the beneficiary only if the beneficiary either: Inherited the other Roth IRA from the same decedent, or Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her own IRA. My 1040ez Distributions that are not qualified distributions. My 1040ez   If a distribution to a beneficiary is not a qualified distribution, it is generally includible in the beneficiary's gross income in the same manner as it would have been included in the owner's income had it been distributed to the IRA owner when he or she was alive. My 1040ez   If the owner of a Roth IRA dies before the end of: The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit, or The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover from a qualified retirement plan to a Roth IRA, each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. My 1040ez See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. My 1040ez Example. My 1040ez When Ms. My 1040ez Hibbard died in 2013, her Roth IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and earnings of $2,000. My 1040ez No distributions had been made from her IRA. My 1040ez She had no basis in the conversion contribution in 2009. My 1040ez When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. My 1040ez Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. My 1040ez An immediate distribution of $4,000 to each child will be treated as $1,000 from regular contributions, $2,500 from conversion contributions, and $500 from earnings. My 1040ez In this case, because the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 2013. My 1040ez The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner. My 1040ez If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise tax for that year on the amount not distributed as required. My 1040ez For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. My 1040ez If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. My 1040ez Prev  Up  Next   Home   More Online Publications
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My 1040ez Publication 15-A - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to www. My 1040ez irs. My 1040ez gov/pub15a. My 1040ez What's New Social security and Medicare tax for 2014. My 1040ez  The social security tax rate is 6. My 1040ez 2% each for the employee and employer, unchanged from 2013. My 1040ez The social security wage base limit is $117,000. My 1040ez The Medicare tax rate is 1. My 1040ez 45% each for the employee and employer, unchanged from 2013. My 1040ez There is no wage base limit for Medicare tax. My 1040ez Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. My 1040ez Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. My 1040ez Withholding allowance. My 1040ez  The 2014 amount for one withholding allowance on an annual basis is $3,950. My 1040ez Same-sex marriage. My 1040ez  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. My 1040ez For more information, see Revenue Ruling 2013-17, 2013-38 I. My 1040ez R. My 1040ez B. My 1040ez 201, available at www. My 1040ez irs. My 1040ez gov/irb/2013-38_IRB/ar07. My 1040ez html. My 1040ez Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. My 1040ez Notice 2013-61, 2013-44 I. My 1040ez R. My 1040ez B. My 1040ez 432, is available at www. My 1040ez irs. My 1040ez gov/irb/2013-44_IRB/ar10. My 1040ez html. My 1040ez Reminders Additional Medicare Tax withholding. My 1040ez . My 1040ez  In addition to withholding Medicare tax at 1. My 1040ez 45%, you must withhold a 0. My 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. My 1040ez You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. My 1040ez Additional Medicare Tax is only imposed on the employee. My 1040ez There is no employer share of Additional Medicare Tax. My 1040ez All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. My 1040ez For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. My 1040ez For more information on Additional Medicare Tax, visit IRS. My 1040ez gov and enter “Additional Medicare Tax” in the search box. My 1040ez Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. My 1040ez  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. My 1040ez Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. My 1040ez For more information, visit IRS. My 1040ez gov and enter “work opportunity tax credit” in the search box. My 1040ez COBRA premium assistance credit. My 1040ez  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. My 1040ez For more information, see COBRA premium assistance credit in Publication 15 (Circular E). My 1040ez Federal tax deposits must be made by electronic funds transfer. My 1040ez  You must use electronic funds transfer to make all federal tax deposits. My 1040ez Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). My 1040ez If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. My 1040ez Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. My 1040ez EFTPS is a free service provided by the Department of Treasury. My 1040ez Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. My 1040ez For more information on making federal tax deposits, see How To Deposit in Publication 15 (Circular E). My 1040ez To get more information about EFTPS or to enroll in EFTPS, visit www. My 1040ez eftps. My 1040ez gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). My 1040ez Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. My 1040ez You must receive written notice from the IRS to file Form 944. My 1040ez  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. My 1040ez S. My 1040ez Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. My 1040ez You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. My 1040ez For more information on requesting to file Form 944, visit IRS. My 1040ez gov and enter “file employment taxes annually” in the search box. My 1040ez Employers can request to file Forms 941 instead of Form 944. My 1040ez  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. My 1040ez You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. My 1040ez For more information on requesting to file Form 944, visit IRS. My 1040ez gov and enter “file employment taxes annually” in the search box. My 1040ez Aggregate Form 941 filers. My 1040ez  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. My 1040ez Aggregate Forms 941 can only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. My 1040ez To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer Appointment of Agent, with the IRS. My 1040ez Aggregate Form 940 filers. My 1040ez  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. My 1040ez Aggregate Forms 940 may only be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. My 1040ez To request approval to act as an agent on behalf of home care service recipients, the agent must file Form 2678 with the IRS. My 1040ez Electronic filing and payment. My 1040ez  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. My 1040ez Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. My 1040ez Spend less time and worry about taxes and more time running your business. My 1040ez Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. My 1040ez For e-file, visit www. My 1040ez irs. My 1040ez gov/efile for additional information. My 1040ez For EFTPS, visit www. My 1040ez eftps. My 1040ez gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). My 1040ez Electronic submission of Forms W-4, W-4P, W-4S and W-4V. My 1040ez  You may set up a system to electronically receive any or all of the following forms (and their Spanish versions, if available) from an employee or payee. My 1040ez Form W-4, Employee's Withholding Allowance Certificate. My 1040ez Form W-4P, Withholding Certificate for Pension or Annuity Payments. My 1040ez Form W-4S, Request for Federal Income Tax Withholding From Sick Pay. My 1040ez Form W-4V, Voluntary Withholding Request. My 1040ez For each form that you establish an electronic submission system for, you must meet each of the following five requirements. My 1040ez The electronic system must ensure that the information received by the payer is the information sent by the payee. My 1040ez The system must document all occasions of user access that result in a submission. My 1040ez In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the person accessing the system and submitting the form is the person identified on the form. My 1040ez The electronic system must provide exactly the same information as the paper form. My 1040ez The electronic submission must be signed with an electronic signature by the payee whose name is on the form. My 1040ez The electronic signature must be the final entry in the submission. My 1040ez Upon request, you must furnish a hard copy of any completed electronic form to the IRS and a statement that, to the best of the payer's knowledge, the electronic form was submitted by the named payee. My 1040ez The hard copy of the electronic form must provide exactly the same information as, but need not be a facsimile of, the paper form. My 1040ez For Form W-4, the signature must be under penalty of perjury, and must contain the same language that appears on the paper version of the form. My 1040ez The electronic system must inform the employee that he or she must make a declaration contained in the perjury statement and that the declaration is made by signing the Form W-4. My 1040ez You must also meet all recordkeeping requirements that apply to the paper forms. My 1040ez For more information, see: Regulations sections 31. My 1040ez 3402(f)(5)-1(c) (for Form W-4), and Announcement 99-6 (for Forms W-4P, W-4S, and W-4V). My 1040ez You can find Announcement 99-6 on page 24 of Internal Revenue Bulletin 1999-4 at www. My 1040ez irs. My 1040ez gov/pub/irs-irbs/irb99-04. My 1040ez pdf. My 1040ez Additional employment tax information. My 1040ez  Visit the IRS website at www. My 1040ez irs. My 1040ez gov/businesses and click on the Employment Taxes link under Businesses Topics. My 1040ez Telephone help. My 1040ez  You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. My 1040ez Help for people with disabilities. My 1040ez  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability) with any tax question or to order forms and publications. My 1040ez You may also use this number for assistance with unresolved tax problems. My 1040ez Furnishing Form W-2 to employees electronically. My 1040ez  You may set up a system to furnish Form W-2, Wage and Tax Statement, electronically. My 1040ez Each employee participating must consent (either electronically or by paper document) to receive his or her Form W-2 electronically, and you must notify the employee of all hardware and software requirements to receive the form. My 1040ez You may not send a Form W-2 electronically to any employee who does not consent or who has revoked consent previously provided. My 1040ez To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement of each requirement to your employees. My 1040ez The employee must be informed that he or she will receive a paper Form W-2 if consent is not given to receive it electronically. My 1040ez The employee must be informed of the scope and duration of the consent. My 1040ez The employee must be informed of any procedure for obtaining a paper copy of his or her Form W-2 and whether or not the request for a paper statement is treated as a withdrawal of his or her consent to receiving his or her Form W-2 electronically. My 1040ez The employee must be notified about how to withdraw a consent and the effective date and manner by which the employer will confirm the withdrawn consent. My 1040ez The employee must also be notified that the withdrawn consent does not apply to the previously issued Forms W-2. My 1040ez The employee must be informed about any conditions under which electronic Forms W-2 will no longer be furnished (for example, termination of employment). My 1040ez The employee must be informed of any procedures for updating his or her contact information that enables the employer to provide electronic Forms W-2. My 1040ez The employer must notify the employee of any changes to the employer's contact information. My 1040ez You must furnish electronic Forms W-2 by the same due date as the paper Forms W-2. My 1040ez For more information on furnishing Form W-2 to employees electronically, see Regulations section 31. My 1040ez 6051-1(j). My 1040ez Photographs of missing children. My 1040ez  The IRS is a proud partner with the National Center for Missing and Exploited Children. My 1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. My 1040ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. My 1040ez Introduction This publication supplements Publication 15 (Circular E). My 1040ez It contains specialized and detailed employment tax information supplementing the basic information provided in Publication 15 (Circular E). My 1040ez This publication also contains tables for withholding on distributions of Indian gaming profits to tribal members. My 1040ez Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various types of noncash compensation. My 1040ez Ordering publications and forms. My 1040ez   See Ordering Employer Tax Forms and Publications in Publication 15 (Circular E) and How To Get Tax Help , later, for more information on how to obtain forms and publications. My 1040ez Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 505 Tax Withholding and Estimated Tax 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Comments and suggestions. My 1040ez   We welcome your comments about this publication and your suggestions for future editions. My 1040ez    You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. My 1040ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. My 1040ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. My 1040ez   You can also send us comments from www. My 1040ez irs. My 1040ez gov/formspubs. My 1040ez Click on More Information and then click on Comment on Tax Forms and Publications. My 1040ez   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. My 1040ez Prev  Up  Next   Home   More Online Publications