Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

How To Do A Tax Amendment

College Students TaxesForm 1040ez2011 Irs Forms2012 Tax Preparation SoftwareIrs Instructions 1040ezFree Tax Calculator2012 Ez Tax FormStudent Tax ReturnsHow To File Tax Extension ElectronicallyEz Tax Form Online1040x Instructions For DummiesHrblockTurbotax Deluxe Federal E File State 2012Irs Gov Form 1040nrFile 2011 Taxes Online H&r BlockHow Do You Amend A Tax ReturnCan I File A 1040x Online1040ez Instruction BookTaxact 2009State Income Tax Free FilingFiling State Taxes Free2011 1040ez Form1040ez Tax Forms DownloadsHow Do I Amend My Tax ReturnHow To Amend Taxes With TurbotaxIrs Form 1040aForm 1040ez InstructionsFederal Income Tax AmendmentFree Tax ReturnHow Do I Amend My 2013 Tax ReturnPenalties For Late Tax ReturnsWhere Can I File 2009 Taxes Online For FreeFiling State Taxes Online For Free2009 Free Tax Software2010 Online Tax Filing1040x FormFile State Tax For Free OnlineFree Online State Tax PreparationFree File State Taxes OnlineI Need To File My 2012 Federal Taxes

How To Do A Tax Amendment

How to do a tax amendment 2. How to do a tax amendment   The Tax and Filing Requirements Table of Contents Returns and Filing Requirements Payment of TaxFederal Tax Deposits Must be Made by Electronic Funds Transfer All organizations subject to the tax on unrelated business income, except the exempt trusts described in section 511(b)(2), are taxable at corporate rates on that income. How to do a tax amendment All exempt trusts subject to the tax on unrelated business income that, if not exempt, would be taxable as trusts are taxable at trust rates on that income. How to do a tax amendment However, an exempt trust may not claim the deduction for a personal exemption that is normally allowed to a trust. How to do a tax amendment The tax is imposed on the organization's unrelated business taxable income (described in chapter 4). How to do a tax amendment The tax is reduced by any applicable tax credits, including the general business credits (such as the investment credit) and the foreign tax credit. How to do a tax amendment Alternative minimum tax. How to do a tax amendment   Organizations liable for tax on unrelated business income may be liable for alternative minimum tax on certain adjustments and tax preference items. How to do a tax amendment Returns and Filing Requirements An exempt organization subject to the tax on unrelated business income must file Form 990-T and attach any required supporting schedules and forms. How to do a tax amendment The obligation to file Form 990-T is in addition to the obligation to file any other required returns. How to do a tax amendment Form 990-T is required if the organization's gross income from unrelated businesses is $1,000 or more. How to do a tax amendment An exempt organization must report income from all its unrelated businesses on a single Form 990-T. How to do a tax amendment Each organization must file a separate Form 990-T, except section 501(c)(2) title holding corporations and organizations receiving their earnings that file a consolidated return under section 1501. How to do a tax amendment The various provisions of tax law relating to accounting periods, accounting methods, at-risk limits (described in section 465), assessments, and collection penalties that apply to tax returns generally also apply to Form 990-T. How to do a tax amendment When to file. How to do a tax amendment   The Form 990-T of an employees' trust described in section 401(a), an IRA (including a traditional, SEP, SIMPLE, Roth, or Coverdell IRA), or an MSA must be filed by the 15th day of the 4th month after the end of its tax year. How to do a tax amendment The Form 990-T of any other exempt organization must be filed by the 15th day of the 5th month after the end of its tax year. How to do a tax amendment If the due date falls on a Saturday, Sunday, or legal holiday, the return is due by the next business day. How to do a tax amendment Extension of time to file. How to do a tax amendment   A Form 990-T filer may request an automatic 3-month (6 months for corporation) extension of time to file a return by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return. How to do a tax amendment The Form 990-T filer may also use Form 8868 to apply for an additional (not automatic) 3-month extension to file the return if the original 3-month extension was not enough time. How to do a tax amendment Public Inspection Requirements of Section 501(c)(3) Organizations. How to do a tax amendment   Under section 6104(d), a section 501(c)(3) organization that has gross income from an unrelated trade or business of $1,000 or more must make its annual exempt organization business income tax return (including amended returns) available for public inspection. How to do a tax amendment    A section 501(c)(3) organization filing the Form 990-T only to request a credit for certain federal excise taxes paid does not have to make the Form 990-T available for public inspection. How to do a tax amendment Payment of Tax Estimated tax. How to do a tax amendment   A tax-exempt organization must make estimated tax payments if it expects its tax (unrelated business income tax after certain adjustments) to be $500 or more. How to do a tax amendment Estimated tax payments are generally due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. How to do a tax amendment If any due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day. How to do a tax amendment   Any organization that fails to pay the proper estimated tax when due may be charged an underpayment penalty for the period of underpayment. How to do a tax amendment Generally, to avoid the estimated tax penalty, the organization must make estimated tax payments that total 100% of the organization's current tax year liability. How to do a tax amendment However, an organization can base its required estimated tax payments on 100% of the tax shown on its return for the preceding year (unless no tax is shown) if its taxable income for each of the 3 preceding tax years was less than $1 million. How to do a tax amendment If an organization's taxable income for any of those years was $1 million or more, it can base only its first required installment payment on its last year's tax. How to do a tax amendment   All tax-exempt organizations should use Form 990-W (Worksheet), to figure their estimated tax. How to do a tax amendment    Tax due with Form 990-T. How to do a tax amendment   Any tax due with Form 990-T must be paid in full when the return is filed, but no later than the date the return is due (determined without extensions). How to do a tax amendment Federal Tax Deposits Must be Made by Electronic Funds Transfer You must use electronic funds transfer to make all federal deposits (such as deposits of estimated tax, employment tax, and excise tax). How to do a tax amendment Forms 8109 and 8109-B, Federal Tax Deposit Coupon, are no longer in use. How to do a tax amendment Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). How to do a tax amendment 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 deposits on your behalf. How to do a tax amendment Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. How to do a tax amendment EFTPS is a free service provided by the Department of Treasury. How to do a tax amendment Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. How to do a tax amendment To get more information about EFTPS or to enroll in EFTPS, visit www. How to do a tax amendment eftps. How to do a tax amendment gov or call 1-800-555-4477. How to do a tax amendment Additional information about EFTPS is available in Publication 966, The Secure Way to Pay Your Federal Taxes. How to do a tax amendment Deposits on business days only. How to do a tax amendment   If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. How to do a tax amendment A business day is any day other than a Saturday, Sunday, or legal holiday. How to do a tax amendment For example, if a deposit is required to be made on a Friday and Friday is a legal holiday, the deposit will be considered timely if it is made by the following Monday (if that Monday is a business day). How to do a tax amendment The term "legal holiday" means any legal holiday in the District of Columbia. How to do a tax amendment Prev  Up  Next   Home   More Online Publications
Español

Merit Systems Protection Board

The Merit Systems Protection Board is a quasi-judicial agency within the executive branch that hears appeals from federal employees and studies federal merit systems in an effort to protect the rights of federal employees.

Contact the Agency or Department

Website: Merit Systems Protection Board

E-mail:

Address: 1615 M Street, NW
Washington, DC 20419

Phone Number: (202) 653-7200

Toll-free: (800) 424-9121 (Inspector General Hotline)

TTY: (800) 877-8339

The How To Do A Tax Amendment

How to do a tax amendment 17. How to do a tax amendment   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. How to do a tax amendment  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. How to do a tax amendment If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. How to do a tax amendment For more information, see How Much Can Be Contributed? later. How to do a tax amendment Roth IRA contribution limit. How to do a tax amendment  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. How to do a tax amendment 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. How to do a tax amendment However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. How to do a tax amendment For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. How to do a tax amendment Modified AGI limit for traditional IRA contributions increased. How to do a tax amendment  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. How to do a tax amendment If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. How to do a tax amendment If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. How to do a tax amendment See How Much Can You Deduct , later. How to do a tax amendment Modified AGI limit for Roth IRA contributions increased. How to do a tax amendment  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. How to do a tax amendment Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. How to do a tax amendment You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. How to do a tax amendment 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. How to do a tax amendment You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. How to do a tax amendment 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-. How to do a tax amendment You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. How to do a tax amendment See Can You Contribute to a Roth IRA , later. How to do a tax amendment Net Investment Income Tax. How to do a tax amendment   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). How to do a tax amendment However, these distributions are taken into account when determining the modified adjusted gross income threshold. How to do a tax amendment Distributions from a nonqualified retirement plan are included in net investment income. How to do a tax amendment See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. How to do a tax amendment Name change. How to do a tax amendment  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. How to do a tax amendment There are no changes to the rules regarding these IRAs. How to do a tax amendment See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. How to do a tax amendment Reminders 2014 limits. How to do a tax amendment   You can find information about the 2014 contribution and AGI limits in Publication 590. How to do a tax amendment Contributions to both traditional and Roth IRAs. How to do a tax amendment   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. How to do a tax amendment Statement of required minimum distribution. How to do a tax amendment  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. How to do a tax amendment The report or offer must include the date by which the amount must be distributed. How to do a tax amendment The report is due January 31 of the year in which the minimum distribution is required. How to do a tax amendment It can be provided with the year-end fair market value statement that you normally get each year. How to do a tax amendment No report is required for IRAs of owners who have died. How to do a tax amendment IRA interest. How to do a tax amendment  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. How to do a tax amendment Tax on your traditional IRA is generally deferred until you take a distribution. How to do a tax amendment Do not report this interest on your tax return as tax-exempt interest. How to do a tax amendment Form 8606. How to do a tax amendment   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. How to do a tax amendment The term “50 or older” is used several times in this chapter. How to do a tax amendment It refers to an IRA owner who is age 50 or older by the end of the tax year. How to do a tax amendment Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. How to do a tax amendment This chapter discusses the following topics. How to do a tax amendment The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). How to do a tax amendment The Roth IRA, which features nondeductible contributions and tax-free distributions. How to do a tax amendment Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. How to do a tax amendment For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. How to do a tax amendment For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. How to do a tax amendment Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. How to do a tax amendment ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. How to do a tax amendment Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. How to do a tax amendment Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. How to do a tax amendment What is compensation?   Generally, compensation is what you earn from working. How to do a tax amendment Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. How to do a tax amendment The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). How to do a tax amendment   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. How to do a tax amendment   Compensation also includes commissions and taxable alimony and separate maintenance payments. How to do a tax amendment Self-employment income. How to do a tax amendment   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. How to do a tax amendment   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. How to do a tax amendment Nontaxable combat pay. How to do a tax amendment   For IRA purposes, if you were a member of the U. How to do a tax amendment S. How to do a tax amendment Armed Forces, your compensation includes any nontaxable combat pay you receive. How to do a tax amendment What is not compensation?   Compensation does not include any of the following items. How to do a tax amendment Earnings and profits from property, such as rental income, interest income, and dividend income. How to do a tax amendment Pension or annuity income. How to do a tax amendment Deferred compensation received (compensation payments postponed from a past year). How to do a tax amendment Income from a partnership for which you do not provide services that are a material income-producing factor. How to do a tax amendment Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. How to do a tax amendment Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. How to do a tax amendment When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. How to do a tax amendment However, the time for making contributions for any year is limited. How to do a tax amendment See When Can Contributions Be Made , later. How to do a tax amendment You can open different kinds of IRAs with a variety of organizations. How to do a tax amendment You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. How to do a tax amendment You can also open an IRA through your stockbroker. How to do a tax amendment Any IRA must meet Internal Revenue Code requirements. How to do a tax amendment Kinds of traditional IRAs. How to do a tax amendment   Your traditional IRA can be an individual retirement account or annuity. How to do a tax amendment It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. How to do a tax amendment How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. How to do a tax amendment These limits and other rules are explained below. How to do a tax amendment Community property laws. How to do a tax amendment   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. How to do a tax amendment This is the rule even in states with community property laws. How to do a tax amendment Brokers' commissions. How to do a tax amendment   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. How to do a tax amendment Trustees' fees. How to do a tax amendment   Trustees' administrative fees are not subject to the contribution limit. How to do a tax amendment Qualified reservist repayments. How to do a tax amendment   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. How to do a tax amendment You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. How to do a tax amendment To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. How to do a tax amendment   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. How to do a tax amendment Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. How to do a tax amendment (See Roth IRAs, later. How to do a tax amendment ) General limit. How to do a tax amendment   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. How to do a tax amendment $5,500 ($6,500 if you are 50 or older). How to do a tax amendment Your taxable compensation (defined earlier) for the year. How to do a tax amendment This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. How to do a tax amendment (See Nondeductible Contributions , later. How to do a tax amendment ) Qualified reservist repayments do not affect this limit. How to do a tax amendment Example 1. How to do a tax amendment Betty, who is 34 years old and single, earned $24,000 in 2013. How to do a tax amendment Her IRA contributions for 2013 are limited to $5,500. How to do a tax amendment Example 2. How to do a tax amendment John, an unmarried college student working part time, earned $3,500 in 2013. How to do a tax amendment His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. How to do a tax amendment Kay Bailey Hutchison Spousal IRA limit. How to do a tax amendment   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. How to do a tax amendment $5,500 ($6,500 if you are 50 or older). How to do a tax amendment The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. How to do a tax amendment Your spouse's IRA contribution for the year to a traditional IRA. How to do a tax amendment Any contribution for the year to a Roth IRA on behalf of your spouse. How to do a tax amendment This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). How to do a tax amendment When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). How to do a tax amendment Contributions must be in the form of money (cash, check, or money order). How to do a tax amendment Property cannot be contributed. How to do a tax amendment Contributions must be made by due date. How to do a tax amendment   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. How to do a tax amendment Age 70½ rule. How to do a tax amendment   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. How to do a tax amendment   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. How to do a tax amendment If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. How to do a tax amendment Designating year for which contribution is made. How to do a tax amendment   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. How to do a tax amendment If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). How to do a tax amendment Filing before a contribution is made. How to do a tax amendment   You can file your return claiming a traditional IRA contribution before the contribution is actually made. How to do a tax amendment Generally, the contribution must be made by the due date of your return, not including extensions. How to do a tax amendment Contributions not required. How to do a tax amendment   You do not have to contribute to your traditional IRA for every tax year, even if you can. How to do a tax amendment How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). How to do a tax amendment However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. How to do a tax amendment See Limit If Covered by Employer Plan , later. How to do a tax amendment You may be able to claim a credit for contributions to your traditional IRA. How to do a tax amendment For more information, see chapter 37. How to do a tax amendment Trustees' fees. How to do a tax amendment   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. How to do a tax amendment However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). How to do a tax amendment See chapter 28. How to do a tax amendment Brokers' commissions. How to do a tax amendment   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. How to do a tax amendment Full deduction. How to do a tax amendment   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). How to do a tax amendment 100% of your compensation. How to do a tax amendment This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. How to do a tax amendment Kay Bailey Hutchison Spousal IRA. How to do a tax amendment   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. How to do a tax amendment $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). How to do a tax amendment The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. How to do a tax amendment The IRA deduction for the year of the spouse with the greater compensation. How to do a tax amendment Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. How to do a tax amendment Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. How to do a tax amendment This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. How to do a tax amendment Note. How to do a tax amendment If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. How to do a tax amendment After a divorce or legal separation, you can deduct only contributions to your own IRA. How to do a tax amendment Your deductions are subject to the rules for single individuals. How to do a tax amendment Covered by an employer retirement plan. How to do a tax amendment   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. How to do a tax amendment This is discussed later under Limit If Covered by Employer Plan . How to do a tax amendment Limits on the amount you can deduct do not affect the amount that can be contributed. How to do a tax amendment See Nondeductible Contributions , later. How to do a tax amendment Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. How to do a tax amendment The “Retirement plan” box should be checked if you were covered. How to do a tax amendment Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. How to do a tax amendment If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. How to do a tax amendment Federal judges. How to do a tax amendment   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. How to do a tax amendment For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. How to do a tax amendment These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. How to do a tax amendment Tax year. How to do a tax amendment   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. How to do a tax amendment For almost all people, the tax year is the calendar year. How to do a tax amendment Defined contribution plan. How to do a tax amendment   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. How to do a tax amendment   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. How to do a tax amendment Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. How to do a tax amendment Defined benefit plan. How to do a tax amendment   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. How to do a tax amendment This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. How to do a tax amendment   A defined benefit plan is any plan that is not a defined contribution plan. How to do a tax amendment Defined benefit plans include pension plans and annuity plans. How to do a tax amendment No vested interest. How to do a tax amendment   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. How to do a tax amendment Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. How to do a tax amendment Social security or railroad retirement. How to do a tax amendment   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. How to do a tax amendment Benefits from a previous employer's plan. How to do a tax amendment   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. How to do a tax amendment Reservists. How to do a tax amendment   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. How to do a tax amendment You are not covered by the plan if both of the following conditions are met. How to do a tax amendment The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. How to do a tax amendment You did not serve more than 90 days on active duty during the year (not counting duty for training). How to do a tax amendment Volunteer firefighters. How to do a tax amendment   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. How to do a tax amendment You are not covered by the plan if both of the following conditions are met. How to do a tax amendment The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. How to do a tax amendment Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. How to do a tax amendment Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. How to do a tax amendment Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. How to do a tax amendment These amounts vary depending on your filing status. How to do a tax amendment To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. How to do a tax amendment See Filing status and Modified adjusted gross income (AGI) , later. How to do a tax amendment Then use Table 17-1 or 17-2 to determine if the phaseout applies. How to do a tax amendment Social security recipients. How to do a tax amendment   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. How to do a tax amendment You received social security benefits. How to do a tax amendment You received taxable compensation. How to do a tax amendment Contributions were made to your traditional IRA. How to do a tax amendment You or your spouse was covered by an employer retirement plan. How to do a tax amendment Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. How to do a tax amendment Deduction phaseout. How to do a tax amendment   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. How to do a tax amendment Table 17-1. How to do a tax amendment Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. How to do a tax amendment IF your filing status is. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment   AND your modified AGI is. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment   THEN you can take. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment single   or  head of household   $59,000 or less   a full deduction. How to do a tax amendment   more than $59,000 but less than $69,000   a partial deduction. How to do a tax amendment   $69,000 or more   no deduction. How to do a tax amendment married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. How to do a tax amendment   more than $95,000 but less than $115,000   a partial deduction. How to do a tax amendment   $115,000 or more   no deduction. How to do a tax amendment married filing separately2   less than $10,000   a partial deduction. How to do a tax amendment   $10,000 or more   no deduction. How to do a tax amendment 1Modified AGI (adjusted gross income). How to do a tax amendment See Modified adjusted gross income (AGI) . How to do a tax amendment 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). How to do a tax amendment If your spouse is covered. How to do a tax amendment   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. How to do a tax amendment Filing status. How to do a tax amendment   Your filing status depends primarily on your marital status. How to do a tax amendment For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. How to do a tax amendment If you need more information on filing status, see chapter 2. How to do a tax amendment Lived apart from spouse. How to do a tax amendment   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. How to do a tax amendment Table 17-2. How to do a tax amendment Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. How to do a tax amendment IF your filing status is. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment   AND your modified AGI is. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment   THEN you can take. How to do a tax amendment . How to do a tax amendment . How to do a tax amendment single, head of household, or qualifying widow(er)   any amount   a full deduction. How to do a tax amendment married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. How to do a tax amendment married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. How to do a tax amendment   more than $178,000 but less than $188,000   a partial deduction. How to do a tax amendment   $188,000 or more   no deduction. How to do a tax amendment married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. How to do a tax amendment   $10,000 or more   no deduction. How to do a tax amendment 1Modified AGI (adjusted gross income). How to do a tax amendment See Modified adjusted gross income (AGI) . How to do a tax amendment 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. How to do a tax amendment Modified adjusted gross income (AGI). How to do a tax amendment   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. How to do a tax amendment If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. How to do a tax amendment You may be able to use Worksheet 17-1 to figure your modified AGI. How to do a tax amendment    Do not assume that your modified AGI is the same as your compensation. How to do a tax amendment Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. How to do a tax amendment Form 1040. How to do a tax amendment   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. How to do a tax amendment IRA deduction. How to do a tax amendment Student loan interest deduction. How to do a tax amendment Tuition and fees deduction. How to do a tax amendment Domestic production activities deduction. How to do a tax amendment Foreign earned income exclusion. How to do a tax amendment Foreign housing exclusion or deduction. How to do a tax amendment Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. How to do a tax amendment S. How to do a tax amendment Savings Bonds Issued After 1989. How to do a tax amendment Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. How to do a tax amendment This is your modified AGI. How to do a tax amendment Form 1040A. How to do a tax amendment   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. How to do a tax amendment IRA deduction. How to do a tax amendment Student loan interest deduction. How to do a tax amendment Tuition and fees deduction. How to do a tax amendment Exclusion of qualified savings bond interest shown on Form 8815. How to do a tax amendment This is your modified AGI. How to do a tax amendment Both contributions for 2013 and distributions in 2013. How to do a tax amendment   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. How to do a tax amendment You received distributions in 2013 from one or more traditional IRAs. How to do a tax amendment You made contributions to a traditional IRA for 2013. How to do a tax amendment Some of those contributions may be nondeductible contributions. How to do a tax amendment If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. How to do a tax amendment To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. How to do a tax amendment   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. How to do a tax amendment    How to figure your reduced IRA deduction. How to do a tax amendment   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. How to do a tax amendment Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. How to do a tax amendment Worksheet 17-1. How to do a tax amendment Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. How to do a tax amendment 1. How to do a tax amendment Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. How to do a tax amendment   2. How to do a tax amendment Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. How to do a tax amendment   3. How to do a tax amendment Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. How to do a tax amendment   4. How to do a tax amendment Enter any domestic production activities deduction from Form 1040, line 35 4. How to do a tax amendment   5. How to do a tax amendment Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. How to do a tax amendment   6. How to do a tax amendment Enter any foreign housing deduction from Form 2555, line 50 6. How to do a tax amendment   7. How to do a tax amendment Enter any excludable savings bond interest from Form 8815, line 14 7. How to do a tax amendment   8. How to do a tax amendment Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. How to do a tax amendment   9. How to do a tax amendment Add lines 1 through 8. How to do a tax amendment This is your Modified AGI for traditional IRA purposes 9. How to do a tax amendment   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. How to do a tax amendment If you file Form 1040A, enter your IRA deduction on line 17. How to do a tax amendment You cannot deduct IRA contributions on Form 1040EZ. How to do a tax amendment Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. How to do a tax amendment The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. How to do a tax amendment Example. How to do a tax amendment Mike is 28 years old and single. How to do a tax amendment In 2013, he was covered by a retirement plan at work. How to do a tax amendment His salary was $57,312. How to do a tax amendment His modified AGI was $70,000. How to do a tax amendment Mike made a $5,500 IRA contribution for 2013. How to do a tax amendment Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. How to do a tax amendment He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. How to do a tax amendment Form 8606. How to do a tax amendment   To designate contributions as nondeductible, you must file Form 8606. How to do a tax amendment   You do not have to designate a contribution as nondeductible until you file your tax return. How to do a tax amendment When you file, you can even designate otherwise deductible contributions as nondeductible. How to do a tax amendment   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. How to do a tax amendment A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. How to do a tax amendment In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. How to do a tax amendment See Form 8606 under Distributions Fully or Partly Taxable, later. How to do a tax amendment Failure to report nondeductible contributions. How to do a tax amendment   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. How to do a tax amendment All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. How to do a tax amendment Penalty for overstatement. How to do a tax amendment   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. How to do a tax amendment Penalty for failure to file Form 8606. How to do a tax amendment   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. How to do a tax amendment    Tax on earnings on nondeductible contributions. How to do a tax amendment   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. How to do a tax amendment See When Can You Withdraw or Use IRA Assets , later. How to do a tax amendment Cost basis. How to do a tax amendment   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. How to do a tax amendment Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. How to do a tax amendment Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. How to do a tax amendment A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. How to do a tax amendment Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. How to do a tax amendment Inherited from spouse. How to do a tax amendment   If you inherit a traditional IRA from your spouse, you generally have the following three choices. How to do a tax amendment You can: Treat it as your own IRA by designating yourself as the account owner. How to do a tax amendment Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). How to do a tax amendment Treat yourself as the beneficiary rather than treating the IRA as your own. How to do a tax amendment Treating it as your own. How to do a tax amendment   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. How to do a tax amendment You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. How to do a tax amendment   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. How to do a tax amendment Inherited from someone other than spouse. How to do a tax amendment   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. How to do a tax amendment This means that you cannot make any contributions to the IRA. How to do a tax amendment It also means you cannot roll over any amounts into or out of the inherited IRA. How to do a tax amendment However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. How to do a tax amendment For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. How to do a tax amendment Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. How to do a tax amendment You can make the following kinds of transfers. How to do a tax amendment Transfers from one trustee to another. How to do a tax amendment Rollovers. How to do a tax amendment Transfers incident to a divorce. How to do a tax amendment Transfers to Roth IRAs. How to do a tax amendment   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. How to do a tax amendment You can also move assets from a qualified retirement plan to a Roth IRA. How to do a tax amendment See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. How to do a tax amendment Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. How to do a tax amendment Because there is no distribution to you, the transfer is tax free. How to do a tax amendment Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . How to do a tax amendment For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. How to do a tax amendment Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. How to do a tax amendment The contribution to the second retirement plan is called a “rollover contribution. How to do a tax amendment ” Note. How to do a tax amendment An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. How to do a tax amendment Kinds of rollovers to a traditional IRA. How to do a tax amendment   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). How to do a tax amendment Treatment of rollovers. How to do a tax amendment   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . How to do a tax amendment Kinds of rollovers from a traditional IRA. How to do a tax amendment   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. How to do a tax amendment These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). How to do a tax amendment The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). How to do a tax amendment Qualified plans may, but are not required to, accept such rollovers. How to do a tax amendment Time limit for making a rollover contribution. How to do a tax amendment   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. How to do a tax amendment The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. How to do a tax amendment For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment Extension of rollover period. How to do a tax amendment   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. How to do a tax amendment For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment More information. How to do a tax amendment   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. How to do a tax amendment Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. How to do a tax amendment Waiting period between rollovers. How to do a tax amendment   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. How to do a tax amendment You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. How to do a tax amendment   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. How to do a tax amendment Example. How to do a tax amendment You have two traditional IRAs, IRA-1 and IRA-2. How to do a tax amendment You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). How to do a tax amendment You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. How to do a tax amendment However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. How to do a tax amendment This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. How to do a tax amendment Exception. How to do a tax amendment   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment Partial rollovers. How to do a tax amendment   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. How to do a tax amendment The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). How to do a tax amendment The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . How to do a tax amendment Required distributions. How to do a tax amendment   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. How to do a tax amendment Inherited IRAs. How to do a tax amendment   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. How to do a tax amendment See Treating it as your own , earlier. How to do a tax amendment Not inherited from spouse. How to do a tax amendment   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. How to do a tax amendment You must withdraw the IRA assets within a certain period. How to do a tax amendment For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. How to do a tax amendment Reporting rollovers from IRAs. How to do a tax amendment   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. How to do a tax amendment   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. How to do a tax amendment If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. How to do a tax amendment If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. How to do a tax amendment Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. How to do a tax amendment See your tax return instructions. How to do a tax amendment   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. How to do a tax amendment Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). How to do a tax amendment A qualified plan is one that meets the requirements of the Internal Revenue Code. How to do a tax amendment Eligible rollover distribution. How to do a tax amendment   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. How to do a tax amendment A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). How to do a tax amendment A hardship distribution. How to do a tax amendment Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. How to do a tax amendment Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. How to do a tax amendment A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. How to do a tax amendment Dividends on employer securities. How to do a tax amendment The cost of life insurance coverage. How to do a tax amendment Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. How to do a tax amendment To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. How to do a tax amendment See Form 8606 under Distributions Fully or Partly Taxable, later. How to do a tax amendment Rollover by nonspouse beneficiary. How to do a tax amendment   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. How to do a tax amendment The IRA is treated as an inherited IRA. How to do a tax amendment For more information about inherited IRAs, see Inherited IRAs , earlier. How to do a tax amendment Reporting rollovers from employer plans. How to do a tax amendment    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. How to do a tax amendment This amount should be shown in box 1 of Form 1099-R. How to do a tax amendment From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. How to do a tax amendment From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. How to do a tax amendment Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. How to do a tax amendment Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. How to do a tax amendment Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. How to do a tax amendment The transfer is tax free. How to do a tax amendment For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment Converting From Any Traditional IRA to a Roth IRA Allowable conversions. How to do a tax amendment   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. How to do a tax amendment The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. How to do a tax amendment If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. How to do a tax amendment However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. How to do a tax amendment Required distributions. How to do a tax amendment   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). How to do a tax amendment Income. How to do a tax amendment   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. How to do a tax amendment 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. How to do a tax amendment   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. How to do a tax amendment   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. How to do a tax amendment   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. How to do a tax amendment See chapter 4. How to do a tax amendment Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. How to do a tax amendment This is called recharacterizing the contribution. How to do a tax amendment See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. How to do a tax amendment How to recharacterize a contribution. How to do a tax amendment   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. How to do a tax amendment If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. How to do a tax amendment If you recharacterize your contribution, you must do all three of the following. How to do a tax amendment Include in the transfer any net income allocable to the contribution. How to do a tax amendment If there was a loss, the net income you must transfer may be a negative amount. How to do a tax amendment Report the recharacterization on your tax return for the year during which the contribution was made. How to do a tax amendment Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. How to do a tax amendment No deduction allowed. How to do a tax amendment   You cannot deduct the contribution to the first IRA. How to do a tax amendment Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. How to do a tax amendment Required notifications. How to do a tax amendment   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. How to do a tax amendment You must make the notifications by the date of the transfer. How to do a tax amendment Only one notification is required if both IRAs are maintained by the same trustee. How to do a tax amendment The notification(s) must include all of the following information. How to do a tax amendment The type and amount of the contribution to the first IRA that is to be recharacterized. How to do a tax amendment The date on which the contribution was made to the first IRA and the year for which it was made. How to do a tax amendment A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. How to do a tax amendment The name of the trustee of the first IRA and the name of the trustee of the second IRA. How to do a tax amendment Any additional information needed to make the transfer. How to do a tax amendment Reporting a recharacterization. How to do a tax amendment   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. How to do a tax amendment You must treat the contribution as having been made to the second IRA. How to do a tax amendment When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. How to do a tax amendment Violation of the rules generally results in additional taxes in the year of violation. How to do a tax amendment See What Acts Result in Penalties or Additional Taxes , later. How to do a tax amendment Contributions returned before the due date of return. How to do a tax amendment   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. How to do a tax amendment If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. How to do a tax amendment You can do this if, for each contribution you withdraw, both of the following conditions apply. How to do a tax amendment You did not take a deduction for the contribution. How to do a tax amendment You withdraw any interest or other income earned on the contribution. How to do a tax amendment You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. How to do a tax amendment If there was a loss, the net income earned on the contribution may be a negative amount. How to do a tax amendment Note. How to do a tax amendment To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. How to do a tax amendment Earnings includible in income. How to do a tax amendment   You must include in income any earnings on the contributions you withdraw. How to do a tax amendment Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. How to do a tax amendment Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. How to do a tax amendment Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. How to do a tax amendment    Early distributions tax. How to do a tax amendment   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. How to do a tax amendment However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. How to do a tax amendment When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. How to do a tax amendment Eventually they must be distributed. How to do a tax amendment If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. How to do a tax amendment See Excess Accumulations (Insufficient Distributions) , later. How to do a tax amendment The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. How to do a tax amendment Required minimum distribution. How to do a tax amendment   The amount that must be distributed each year is referred to as the required minimum distribution. How to do a tax amendment Required distributions not eligible for rollover. How to do a tax amendment   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. How to do a tax amendment IRA owners. How to do a tax amendment   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. How to do a tax amendment April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. How to do a tax amendment Distributions by the required beginning date. How to do a tax amendment   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). How to do a tax amendment If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. How to do a tax amendment   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. How to do a tax amendment Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. How to do a tax amendment Distributions after the required beginning date. How to do a tax amendment   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. How to do a tax amendment    Beneficiaries. How to do a tax amendment   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. How to do a tax amendment More information. How to do a tax amendment   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. How to do a tax amendment Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. How to do a tax amendment Exceptions. How to do a tax amendment   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . How to do a tax amendment    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. How to do a tax amendment Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. How to do a tax amendment Qualified charitable distributions (QCD). How to do a tax amendment   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. How to do a tax amendment Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. How to do a tax amendment See Qualified Charitable Distributions in Publication 590 for more information. How to do a tax amendment Ordinary income. How to do a tax amendment   Distributions from traditional IRAs that you include in income are taxed as ordinary income. How to do a tax amendment No special treatment. How to do a tax amendment   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. How to do a tax amendment Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. How to do a tax amendment Fully taxable. How to do a tax amendment   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. How to do a tax amendment Because you have no basis in your IRA, any distributions are fully taxable when received. How to do a tax amendment See Reporting taxable distributions on your return , later. How to do a tax amendment Partly taxable. How to do a tax amendment    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. How to do a tax amendment These nondeductible contributions are not taxed when they are distributed to you. How to do a tax amendment They are a return of your investment in your IRA. How to do a tax amendment   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. How to do a tax amendment If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). How to do a tax amendment Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. How to do a tax amendment Form 8606. How to do a tax amendment   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. How to do a tax amendment Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. How to do a tax amendment Note. How to do a tax amendment If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. How to do a tax amendment Send it to the IRS at the time and place you would otherwise file an income tax return. How to do a tax amendment Distributions reported on Form 1099-R. How to do a tax amendment   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to do a tax amendment , or a similar statement. How to do a tax amendment IRA distributions are shown in boxes 1 and 2a of Form 1099-R. How to do a tax amendment A number or letter code in box 7 tells you what type of distribution you received from your IRA. How to do a tax amendment Withholding. How to do a tax amendment   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. How to do a tax amendment See chapter 4. How to do a tax amendment IRA distributions delivered outside the United States. How to do a tax amendment   In general, if you are a U. How to do a tax amendment S. How to do a tax amendment citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. How to do a tax amendment Reporting taxable distributions on your return. How to do a tax amendment    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). How to do a tax amendment If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. How to do a tax amendment You cannot report distributions on Form 1040EZ. How to do a tax amendment What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. How to do a tax amendment There are additions to the regular tax for using your IRA funds in prohibited transactions. How to do a tax amendment There are also additional taxes for the following activities. How to do a tax amendment Investing in collectibles. How to do a tax amendment Making excess contributions. How to do a tax amendment Taking early distributions. How to do a tax amendment Allowing excess amounts to accumulate (failing to take required distributions). How to do a tax amendment There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. How to do a tax amendment Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. How to do a tax amendment Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). How to do a tax amendment The following are examples of prohibited transactions with a traditional IRA. How to do a tax amendment Borrowing money from it. How to do a tax amendment Selling property to it. How to do a tax amendment Receiving unreasonable compensation for managing it. How to do a tax amendment Using it as security for a loan. How to do a tax amendment Buying property for personal use (present or future) with IRA funds. How to do a tax amendment Effect on an IRA account. How to do a tax amendment   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. How to do a tax amendment Effect on you or your beneficiary. How to do a tax amendment   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. How to do a tax amendment If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. How to do a tax amendment For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. How to do a tax amendment The distribution may be subject to additional taxes or penalties. How to do a tax amendment Taxes on prohibited transactions. How to do a tax amendment   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. How to do a tax amendment In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. How to do a tax amendment More information. How to do a tax amendment   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. How to do a tax amendment Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. How to do a tax amendment You may have to pay the 10% additional tax on early distributions, discussed later. How to do a tax amendment Collectibles. How to do a tax amendment   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. How to do a tax amendment Exception. How to do a tax amendment    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. How to do a tax amendment S. How to do a tax amendment gold coins, or one-ounce silver coins minted by the Treasury Department. How to do a tax amendment It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. How to do a tax amendment Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. How to do a tax amendment For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. How to do a tax amendment Tax on excess contributions. How to do a tax amendment   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. How to do a tax amendment You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. How to do a tax amendment The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. How to do a tax amendment Excess contributions withdrawn by due date of return. How to do a tax amendment   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. How to do a tax amendment You must complete your withdrawal by the date your tax return for that year is due, including extensions. How to do a tax amendment How to treat withdrawn contributions. How to do a tax amendment   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. How to do a tax amendment No deduction was allowed for the excess contribution. How to do a tax amendment You withdraw the interest or other income earned on the excess contribution. How to do a tax amendment You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. How to do a tax amendment If there was a loss, the net income you must withdraw may be a negative amount. How to do a tax amendment How to treat withdrawn interest or other income. How to do a tax amendment   You must include in your gross income the interest or other income that was earned on the excess contribution. How to do a tax amendment Report it on your return for the year in which the excess contribution was made. How to do a tax amendment Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus