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IRS.gov Website
Publication 590
taxmap/pubs/p590-013.htm#en_us_publink1000230955

Chapter 2
Roth IRAs(p54)

What's New for 2011(p54)


taxmap/pubs/p590-013.htm#en_us_publink1000230962
Modified AGI limit for Roth IRA contributions increased.(p54)
For 2011, your Roth IRA contribution limit is reduced (phased out) in the following situations.
  • Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $169,000. You cannot make a Roth IRA contribution if your modified AGI is $179,000 or more.
  • Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2011 and your modified AGI is at least $107,000. You cannot make a Roth IRA contribution if your modified AGI is $122,000 or more.
  • 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-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.
See Can You Contribute to a Roth IRA? in this chapter.

What's New for 2012(p54)


taxmap/pubs/p590-013.htm#en_us_publink1000253530
Modified AGI limit for Roth IRA contributions increased.(p54)
For 2012, your Roth IRA contribution limit is reduced (phased out) in the following situations.
  • Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $173,000. You cannot make a Roth IRA contribution if your modified AGI is $183,000 or more.
  • Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2012 and your modified AGI is at least $110,000. You cannot make a Roth IRA contribution if your modified AGI is $125,000 or more.
  • 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-. You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more.

Reminder(p54)


taxmap/pubs/p590-013.htm#en_us_publink1000230967
Deemed IRAs.(p54)
For plan years beginning after 2002, a qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. An employee's account can be treated as a traditional IRA or a Roth IRA.
For this purpose, a "qualified employer plan" includes:
  • A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan),
  • A qualified employee annuity plan (section 403(a) plan),
  • A tax-sheltered annuity plan (section 403(b) plan), and
  • A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state.
taxmap/pubs/p590-013.htm#en_us_publink1000248503
Designated Roth accounts.(p54)
Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. A contribution to one does not impact your eligibility to contribute to the other. See Publication 575, for more information on designated Roth accounts.
taxmap/pubs/p590-013.htm#en_us_publink1000265790
2010 conversions and rollovers to Roth IRAs.(p54)
If you converted or rolled over amounts to your Roth IRAs in 2010 and did not elect to include the entire amount in income in 2010, you must include part of the amount in income for 2011. For information on reporting a 2010 rollover from a qualified employer plan to a Roth IRA, see Publication 575. For information on reporting a 2010 conversion from a traditional IRA to a Roth IRA, see How to treat 2010 conversions to Roth IRAs, later.

taxmap/pubs/p590-013.htm#TXMP1405ce9dIntroduction

Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA.
taxmap/pubs/p590-013.htm#en_us_publink1000230968

Contributions not reported.(p54)

rule
You do not report Roth IRA contributions on your return.
taxmap/pubs/p590-013.htm#en_us_publink1000230969

What Is a Roth IRA?(p55)

rule
A Roth IRA is an individual retirement plan that, except as explained in this chapter, is subject to the rules that apply to a traditional IRA (defined later). It can be either an account or an annuity. Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened.
To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA.
Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. Contributions can be made to your Roth IRA after you reach age 701/2 and you can leave amounts in your Roth IRA as long as you live.
taxmap/pubs/p590-013.htm#en_us_publink1000230973

Traditional IRA.(p55)

rule
A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Traditional IRAs are discussed in chapter 1.