17.1 Individual Retirement Arrangements (IRAs): Distributions, Early Withdrawals, 10% Additional Tax
You will need to refer to chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs), to find out this amount. Generally the minimum distribution is computed using one of three tables found in Publication 590. Table I is used by beneficiaries. Table II is for use by owners who have spouses who are more than 10 years younger. Table III is generally for use by unmarried owners and owners who have spouses who are not more than 10 years younger.
References:
- Publication 590, Individual Retirement Arrangements (IRAs)
You must complete the rollover by the 60th day following the day on which you receive the distribution. (This 60-day period is extended for the period during which the distribution is in a frozen deposit in a financial institution.) The IRS may waive the 60-day requirement in certain situations, such as in the event of a casualty, disaster, or other event beyond your reasonable control. To obtain a waiver, a request for a ruling must be made including the applicable user fee. Refer to Tax Regs in English to get the Internal Revenue Procedure for requesting a ruling. A written explanation of rollover must be given to you by the issuer making the distribution. For information on distributions which qualify for rollover treatment, refer to Tax Topic 413, Rollovers from Retirement Plans. For information on the Direct Rollover Option, refer to Chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs).
References:
- Publication 17, Your Federal Income Tax
- Tax Topic 413, Rollovers from Retirement Plans
- Publication 590, Individual Retirement Arrangements (IRAs)
Yes, if you are receiving a distribution from a 401(k) that is eligible to roll over into an IRA and you meet all of the qualifications for an IRA distribution for a first-time homebuyer. Your plan administrator is required to notify you before making a distribution from your 401(k) plan whether that distribution is eligible to be rolled over into an IRA. To see if you qualify for a distribution to be used as a first-time homebuyer, refer to Chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs).
References:
- Publication 560, Retirement Plans for Small Business (SEP, Simple, and Qualified Plans)
- Publication 575, Pension and Annuity Income
- Tax Topic 424, 401(k) plans
- Tax Topic 558, Tax on early distributions from retirement plans
- Tax Topic 412, Lump-sum distributions
There are no forms to report a Roth contribution. The financial institution, which is the trustee of your Roth IRA, will send you information on the amount in your Roth IRA. They will also send the information to the Internal Revenue Service. Use Form 8606 (PDF), Nondeductible IRAs, if you made a nondeductible contribution to a traditional IRA; converted from a traditional IRA, a SEP, or Simple IRA to a Roth IRA, received a distribution from a traditional IRA, a SEP, or a Simple IRA and made nondeductible contributions to a traditional IRA, or received a distribution from a Roth or traditional IRA.
References:
- Publication 590, Individual Retirement Arrangements (IRAs)
- Form 8606 (PDF), Nondeductible IRAs
- Tax Topic 428, Roth IRA Distributions
Yes, you can make a contribution to a SEP-IRA and a Roth IRA. See Chapter 2 of Publication 590, Individual Retirement Arrangements (IRAs), for the requirements to contribute to a SEP and a Roth IRA. However, your SEP IRA contribution and Roth IRA contribution can not be made to the same IRA.
References:
- Publication 590, Individual Retirement Arrangements (IRAs)
- Tax Topic 451, Individual Retirement Arrangements (IRAs)
If both you and your spouse work and both have taxable compensation, each of you can contribute to a separate traditional IRA. The amount that you can contribute to each IRA is subject to a limit. Refer to chapter 1 of Publication 590 for more information on these limits. Contributions can be made even if one spouse has little or no compensation, if you file a joint return. You can make a contribution to a separate IRA for your nonworking spouse if you file a joint return. Your total contribution to both your IRA and the spousal IRA for this year is limited by certain factors such as your taxable compensation, contributions to a traditional or Roth IRA and your age.
For additional information, refer to Tax Topic 451, Individual Retirement Arrangements (IRAs), or Publication 590, Individual Retirement Arrangements (IRAs).
References:
- Tax Topic 451, Individual Retirement Arrangements (IRAs)
No. A 401(k) plan is not an IRA. However, the amount you contributed is not included as income in box 1 of your W-2 form so you don't pay tax on it in the year you make the contribution. For more information, refer to Tax Topic 424, 401(k) Plans, Publication 575, Pension and Annuity Income, or Publication 560, Retirement Plans for Small Business.