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Filing Tax Extension

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Filing Tax Extension

Filing tax extension 2. Filing tax extension   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. Filing tax extension Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. Filing tax extension  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. Filing tax extension 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. Filing tax extension However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Filing tax extension For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. Filing tax extension Modified AGI limit for Roth IRA contributions increased. Filing tax extension  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Filing tax extension Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Filing tax extension 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. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Filing tax extension 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-. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Filing tax extension See Can You Contribute to a Roth IRA? in this chapter. Filing tax extension Net Investment Income Tax. Filing tax extension  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). Filing tax extension However, these distributions are taken into account when determining the modified adjusted gross income threshold. Filing tax extension Distributions from a nonqualified retirement plan are included in net investment income. Filing tax extension See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Filing tax extension What's New for 2014 Modified AGI limit for Roth IRA contributions increased. Filing tax extension  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. Filing tax extension Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. Filing tax extension 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. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. Filing tax extension 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-. Filing tax extension You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Filing tax extension Reminders Deemed IRAs. Filing tax extension  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. Filing tax extension If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. Filing tax extension An employee's account can be treated as a traditional IRA or a Roth IRA. Filing tax extension 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. Filing tax extension Designated Roth accounts. Filing tax extension  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. Filing tax extension These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. Filing tax extension Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. Filing tax extension Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. Filing tax extension A contribution to one does not impact your eligibility to contribute to the other. Filing tax extension See Publication 575, for more information on designated Roth accounts. Filing tax extension Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. Filing tax extension Contributions not reported. Filing tax extension   You do not report Roth IRA contributions on your return. Filing tax extension 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). Filing tax extension It can be either an account or an annuity. Filing tax extension Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. Filing tax extension To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. Filing tax extension A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Filing tax extension Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. Filing tax extension But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. Filing tax extension 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. Filing tax extension Traditional IRA. Filing tax extension   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Filing tax extension Traditional IRAs are discussed in chapter 1. Filing tax extension When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. Filing tax extension However, the time for making contributions for any year is limited. Filing tax extension See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. Filing tax extension 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. Filing tax extension You may be able to claim a credit for contributions to your Roth IRA. Filing tax extension For more information, see chapter 4. Filing tax extension Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. Filing tax extension 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. Filing tax extension Compensation. Filing tax extension   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. Filing tax extension It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. Filing tax extension For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. Filing tax extension Modified AGI. Filing tax extension   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. Filing tax extension Use Worksheet 2-1 , later, to determine your modified AGI. Filing tax extension    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. Filing tax extension Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. Filing tax extension 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. Filing tax extension Worksheet 2-1. Filing tax extension Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. Filing tax extension 1. Filing tax extension Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. Filing tax extension   2. Filing tax extension 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. Filing tax extension   3. Filing tax extension Subtract line 2 from line 1 3. Filing tax extension   4. Filing tax extension Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. Filing tax extension   5. Filing tax extension Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. Filing tax extension   6. Filing tax extension Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. Filing tax extension   7. Filing tax extension Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. Filing tax extension   8. Filing tax extension Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. Filing tax extension   9. Filing tax extension Enter any foreign housing deduction from Form 2555, line 50 9. Filing tax extension   10. Filing tax extension Enter any excludable qualified savings bond interest from Form 8815, line 14 10. Filing tax extension   11. Filing tax extension Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. Filing tax extension   12. Filing tax extension Add the amounts on lines 3 through 11 12. Filing tax extension   13. Filing tax extension 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. Filing tax extension   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. Filing tax extension  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. Filing tax extension       Note. Filing tax extension 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. Filing tax extension (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. Filing tax extension ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. Filing tax extension 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. Filing tax extension Roth IRAs only. Filing tax extension   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. Filing tax extension   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . Filing tax extension Roth IRAs and traditional IRAs. Filing tax extension   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. Filing tax extension Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. Filing tax extension   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. Filing tax extension   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . Filing tax extension   Simplified employee pensions (SEPs) are discussed in Publication 560. Filing tax extension Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. Filing tax extension Repayment of reservist distributions. Filing tax extension   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. Filing tax extension However, the total repayments cannot be more than the amount of your distribution. Filing tax extension Note. Filing tax extension 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. Filing tax extension For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. Filing tax extension Contribution limit reduced. Filing tax extension   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. Filing tax extension Use Table 2-1, later, to determine if this reduction applies to you. Filing tax extension Table 2-1. Filing tax extension 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). Filing tax extension IF you have taxable compensation and your filing status is . Filing tax extension . Filing tax extension . Filing tax extension AND your modified AGI is . Filing tax extension . Filing tax extension . Filing tax extension THEN . Filing tax extension . Filing tax extension . Filing tax extension 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 . Filing tax extension at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing tax extension $188,000 or more you cannot contribute to a Roth IRA. Filing tax extension 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 . Filing tax extension more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing tax extension $10,000 or more you cannot contribute to a Roth IRA. Filing tax extension 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 . Filing tax extension at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Filing tax extension $127,000 or more you cannot contribute to a Roth IRA. Filing tax extension Figuring the reduction. Filing tax extension   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. Filing tax extension Worksheet 2-2. Filing tax extension 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. Filing tax extension If it is, use this worksheet to determine how much it is reduced. Filing tax extension 1. Filing tax extension Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Filing tax extension   2. Filing tax extension 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. Filing tax extension   3. Filing tax extension Subtract line 2 from line 1 3. Filing tax extension   4. Filing tax extension 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. Filing tax extension   5. Filing tax extension Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Filing tax extension If the result is 1. Filing tax extension 000 or more, enter 1. Filing tax extension 000 5. Filing tax extension   6. Filing tax extension Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Filing tax extension   7. Filing tax extension Multiply line 5 by line 6 7. Filing tax extension   8. Filing tax extension Subtract line 7 from line 6. Filing tax extension Round the result up to the nearest $10. Filing tax extension If the result is less than $200, enter $200 8. Filing tax extension   9. Filing tax extension Enter contributions for the year to other IRAs 9. Filing tax extension   10. Filing tax extension Subtract line 9 from line 6 10. Filing tax extension   11. Filing tax extension Enter the lesser of line 8 or line 10. Filing tax extension This is your reduced Roth IRA contribution limit 11. Filing tax extension      Round your reduced contribution limit up to the nearest $10. Filing tax extension If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. Filing tax extension Example. Filing tax extension You are a 45-year-old, single individual with taxable compensation of $113,000. Filing tax extension You want to make the maximum allowable contribution to your Roth IRA for 2013. Filing tax extension Your modified AGI for 2013 is $113,000. Filing tax extension You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. Filing tax extension You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. Filing tax extension Example—Illustrated, later. Filing tax extension   Worksheet 2-2. Filing tax extension Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Filing tax extension If it is, use this worksheet to determine how much it is reduced. Filing tax extension 1. Filing tax extension Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Filing tax extension 113,000 2. Filing tax extension 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. Filing tax extension 112,000 3. Filing tax extension Subtract line 2 from line 1 3. Filing tax extension 1,000 4. Filing tax extension 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. Filing tax extension 15,000 5. Filing tax extension Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Filing tax extension If the result is 1. Filing tax extension 000 or more, enter 1. Filing tax extension 000 5. Filing tax extension . Filing tax extension 067 6. Filing tax extension Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Filing tax extension 5,500 7. Filing tax extension Multiply line 5 by line 6 7. Filing tax extension 369 8. Filing tax extension Subtract line 7 from line 6. Filing tax extension Round the result up to the nearest $10. Filing tax extension If the result is less than $200, enter $200 8. Filing tax extension 5,140 9. Filing tax extension Enter contributions for the year to other IRAs 9. Filing tax extension 0 10. Filing tax extension Subtract line 9 from line 6 10. Filing tax extension 5,500 11. Filing tax extension Enter the lesser of line 8 or line 10. Filing tax extension This is your reduced Roth IRA contribution limit 11. Filing tax extension 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). Filing tax extension You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. Filing tax extension This means that most people can make contributions for 2013 by April 15, 2014. Filing tax extension What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. Filing tax extension Excess contributions. Filing tax extension   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. Filing tax extension Withdrawal of excess contributions. Filing tax extension   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. Filing tax extension This treatment only applies if any earnings on the contributions are also withdrawn. Filing tax extension The earnings are considered earned and received in the year the excess contribution was made. Filing tax extension   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. Filing tax extension If you do, file an amended return with “Filed pursuant to section 301. Filing tax extension 9100-2” written at the top. Filing tax extension Report any related earnings on the amended return and include an explanation of the withdrawal. Filing tax extension Make any other necessary changes on the amended return. Filing tax extension Applying excess contributions. Filing tax extension    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. Filing tax extension 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. Filing tax extension You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. Filing tax extension You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. Filing tax extension You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. Filing tax extension Conversions You can convert a traditional IRA to a Roth IRA. Filing tax extension The conversion is treated as a rollover, regardless of the conversion method used. Filing tax extension Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Filing tax extension However, the 1-year waiting period does not apply. Filing tax extension Conversion methods. Filing tax extension   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. Filing tax extension Rollover. Filing tax extension 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. Filing tax extension Trustee-to-trustee transfer. Filing tax extension You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. Filing tax extension Same trustee transfer. Filing tax extension 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. Filing tax extension Same trustee. Filing tax extension   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. Filing tax extension Income. Filing tax extension   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. Filing tax extension 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. Filing tax extension If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Filing tax extension See Publication 505, Tax Withholding and Estimated Tax. Filing tax extension More information. Filing tax extension   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Filing tax extension 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). Filing tax extension Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. Filing tax extension See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Filing tax extension Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. Filing tax extension Rollover methods. Filing tax extension   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. Filing tax extension Rollover. Filing tax extension 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. Filing tax extension Since the distribution is paid directly to you, the payer generally must withhold 20% of it. Filing tax extension Direct rollover option. Filing tax extension 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. Filing tax extension Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. Filing tax extension Rollover by nonspouse beneficiary. Filing tax extension   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. Filing tax extension You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. Filing tax extension   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. Filing tax extension For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. Filing tax extension Income. Filing tax extension   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. Filing tax extension 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. Filing tax extension 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. Filing tax extension If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Filing tax extension See Publication 505, Tax Withholding and Estimated Tax. Filing tax extension 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. Filing tax extension 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. Filing tax extension The contribution is treated as a qualified rollover contribution. Filing tax extension 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. Filing tax extension Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. Filing tax extension The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. Filing tax extension 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. Filing tax extension 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. Filing tax extension Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Filing tax extension However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. Filing tax extension A rollover from a Roth IRA to an employer retirement plan is not allowed. Filing tax extension A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. Filing tax extension 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. Filing tax extension The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. Filing tax extension See What are Qualified Distributions , later. Filing tax extension 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. Filing tax extension 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. Filing tax extension 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. Filing tax extension For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. Filing tax extension 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. Filing tax extension The contribution must be made within 180 days from the date you received the payment. Filing tax extension The contribution will be treated as a qualified rollover contribution. Filing tax extension 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. Filing tax extension 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. Filing tax extension Qualified airline employee. Filing tax extension    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. Filing tax extension These provisions also apply to surviving spouses of qualified airline employees. Filing tax extension Airline payment. Filing tax extension    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. Filing tax extension 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. Filing tax extension 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. Filing tax extension Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. Filing tax extension 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). Filing tax extension You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. Filing tax extension You may have to include part of other distributions in your income. Filing tax extension See Ordering Rules for Distributions , later. Filing tax extension Basis of distributed property. Filing tax extension   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. Filing tax extension Withdrawals of contributions by due date. Filing tax extension   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. Filing tax extension If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. Filing tax extension 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. Filing tax extension What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. Filing tax extension 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). Filing tax extension 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. Filing tax extension Distributions of conversion and certain rollover contributions within 5-year period. Filing tax extension   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. Filing tax extension 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). Filing tax extension A separate 5-year period applies to each conversion and rollover. Filing tax extension See Ordering Rules for Distributions , later, to determine the recapture amount, if any. Filing tax extension   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. Filing tax extension See What Are Qualified Distributions , earlier. Filing tax extension   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. Filing tax extension   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. Filing tax extension   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. Filing tax extension You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. Filing tax extension Other early distributions. Filing tax extension   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. Filing tax extension Exceptions. Filing tax extension   You may not have to pay the 10% additional tax in the following situations. Filing tax extension You have reached age 59½. Filing tax extension You are totally and permanently disabled. Filing tax extension You are the beneficiary of a deceased IRA owner. Filing tax extension You use the distribution to buy, build, or rebuild a first home. Filing tax extension The distributions are part of a series of substantially equal payments. Filing tax extension You have unreimbursed medical expenses that are more than 10% (or 7. Filing tax extension 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. Filing tax extension You are paying medical insurance premiums during a period of unemployment. Filing tax extension The distributions are not more than your qualified higher education expenses. Filing tax extension The distribution is due to an IRS levy of the qualified plan. Filing tax extension The distribution is a qualified reservist distribution. Filing tax extension Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . Filing tax extension Please click here for the text description of the image. Filing tax extension 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. Filing tax extension 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. Filing tax extension For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). Filing tax extension Order the distributions as follows. Filing tax extension Regular contributions. Filing tax extension Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). Filing tax extension See Aggregation (grouping and adding) rules, later. Filing tax extension 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. Filing tax extension Earnings on contributions. Filing tax extension Disregard rollover contributions from other Roth IRAs for this purpose. Filing tax extension Aggregation (grouping and adding) rules. Filing tax extension   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. Filing tax extension Add all distributions from all your Roth IRAs during the year together. Filing tax extension 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. Filing tax extension Add this total to the total undistributed regular contributions made in prior years. Filing tax extension Add all conversion and rollover contributions made during the year together. Filing tax extension 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. Filing tax extension 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. Filing tax extension   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. Filing tax extension Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. Filing tax extension Example. Filing tax extension On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. Filing tax extension His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. Filing tax extension Justin included $60,000 ($80,000 − $20,000) in his gross income. Filing tax extension On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. Filing tax extension On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. Filing tax extension The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. Filing tax extension The next $2,000 of the distribution is not includible in income because it was included previously. Filing tax extension Figuring your recapture amount. Filing tax extension   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. Filing tax extension 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. Filing tax extension   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). Filing tax extension The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Filing tax extension Note. Filing tax extension Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Filing tax extension See the Example , earlier. Filing tax extension 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. Filing tax extension  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Filing tax extension Amount to include on Form 5329, line 1. Filing tax extension   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. Filing tax extension The amount you allocated to line 20 of your 2013 Form 8606. Filing tax extension The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. Filing tax extension The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. Filing tax extension The amount from your 2013 Form 8606, line 25. Filing tax extension   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. Filing tax extension Example. Filing tax extension Ishmael, age 32, opened a Roth IRA in 2000. Filing tax extension He made the maximum contributions to it every year. Filing tax extension In addition, he made the following transactions into his Roth IRA. Filing tax extension In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. Filing tax extension He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. Filing tax extension 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. Filing tax extension He entered $10,000 on line 18 of Form 8606. Filing tax extension In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. Filing tax extension He used a 2011 Form 1040 to file his taxes. Filing tax extension 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. Filing tax extension Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. Filing tax extension He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. Filing tax extension 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). Filing tax extension He has not taken any early distribution from his Roth IRA before 2013. Filing tax extension In 2013, he made the maximum contribution of $5,500 to his Roth IRA. Filing tax extension 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. Filing tax extension See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. Filing tax extension 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). Filing tax extension 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. Filing tax extension 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. Filing tax extension   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). Filing tax extension The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Filing tax extension Note. Filing tax extension Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Filing tax extension See the Example , earlier. Filing tax extension 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. Filing tax extension  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Filing tax extension 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. Filing tax extension Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. Filing tax extension The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. Filing tax extension 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 . Filing tax extension Minimum distributions. Filing tax extension   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. Filing tax extension Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. Filing tax extension See Distributions to beneficiaries , later. Filing tax extension 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. Filing tax extension Your basis is the total amount of contributions in your Roth IRAs. Filing tax extension 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). Filing tax extension Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. Filing tax extension 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. Filing tax extension See When Can You Withdraw or Use Assets? in chapter 1. Filing tax extension Distributions to beneficiaries. Filing tax extension   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. Filing tax extension (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. Filing tax extension )   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. Filing tax extension Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. Filing tax extension   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. Filing tax extension Combining with other Roth IRAs. Filing tax extension   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. Filing tax extension Distributions that are not qualified distributions. Filing tax extension   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. Filing tax extension   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. Filing tax extension See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. Filing tax extension Example. Filing tax extension When Ms. Filing tax extension 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. Filing tax extension No distributions had been made from her IRA. Filing tax extension She had no basis in the conversion contribution in 2009. Filing tax extension When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. Filing tax extension Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. Filing tax extension 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. Filing tax extension 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. Filing tax extension 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. Filing tax extension 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. Filing tax extension 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. Filing tax extension If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. Filing tax extension Prev  Up  Next   Home   More Online Publications
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The Filing Tax Extension

Filing tax extension 34. Filing tax extension   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. Filing tax extension El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. Filing tax extension Este capítulo le explica lo siguiente: Quién es un hijo calificado. Filing tax extension La cantidad del crédito. Filing tax extension Cómo se puede reclamar el crédito. Filing tax extension El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. Filing tax extension Si no está sujeto al pago de impuestos. Filing tax extension   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. Filing tax extension Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. Filing tax extension Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). Filing tax extension Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. Filing tax extension Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. Filing tax extension Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. Filing tax extension Ejemplo 1. Filing tax extension Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. Filing tax extension Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. Filing tax extension Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. Filing tax extension Ejemplo 2. Filing tax extension Su hija cumplió 8 años en el año 2013. Filing tax extension Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. Filing tax extension Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. Filing tax extension Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). Filing tax extension   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). Filing tax extension   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. Filing tax extension Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. Filing tax extension Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. Filing tax extension S. Filing tax extension Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. Filing tax extension Hijo adoptivo. Filing tax extension   A un hijo adoptivo siempre se le trata como si fuera su hijo. Filing tax extension Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. Filing tax extension   Si usted es ciudadano o nacional de los EE. Filing tax extension UU. Filing tax extension y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. Filing tax extension Excepciones al tiempo vivido con usted. Filing tax extension   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. Filing tax extension Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. Filing tax extension   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. Filing tax extension Para detalles, vea Requisito de Residencia , en el capítulo 3. Filing tax extension Hijo calificado de más de una persona. Filing tax extension   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. Filing tax extension Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. Filing tax extension Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. Filing tax extension Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. Filing tax extension Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. Filing tax extension Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. Filing tax extension Vea Crédito Tributario Adicional por Hijos , más adelante. Filing tax extension Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. Filing tax extension Casados que presentan una declaración conjunta: $110,000. Filing tax extension Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. Filing tax extension Casados que presentan la declaración por separado: $55,000. Filing tax extension Ingresos brutos ajustados modificados. Filing tax extension   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. Filing tax extension En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. Filing tax extension ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. Filing tax extension Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. Filing tax extension Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. Filing tax extension Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. Filing tax extension   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. Filing tax extension Ingreso bruto ajustado. Filing tax extension   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. Filing tax extension Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. Filing tax extension No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. Filing tax extension Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. Filing tax extension Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. Filing tax extension Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. Filing tax extension Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. Filing tax extension Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. Filing tax extension Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. Filing tax extension El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. Filing tax extension Cómo se reclama el crédito tributario adicional por hijos. Filing tax extension   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. Filing tax extension Vea anteriormente el tema titulado Cómo Reclamar el Crédito . Filing tax extension Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. Filing tax extension Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. Filing tax extension Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. Filing tax extension La Parte I es independiente de las Partes II a la IV. Filing tax extension Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. Filing tax extension Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). Filing tax extension Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. Filing tax extension Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. Filing tax extension Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. Filing tax extension Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. Filing tax extension Prev  Up  Next   Home   More Online Publications