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taxmap/pubs/p590-000.htm#en_us_publink1000230269
Publication 590

Individual 
Retirement 
Arrangements 
(IRAs)

For Use in Tax Year 2013
rule

(p1)


Note. After 2013, Publication 590 will be split into two separate publications as follows.

What's New for 2013(p2)


taxmap/pubs/p590-000.htm#en_us_publink1000308721
Traditional IRA contribution and deduction limit.(p2)
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.
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.
For more information, see How Much Can Be Contributed? in chapter 1.
taxmap/pubs/p590-000.htm#en_us_publink1000308723
Roth IRA contribution limit.(p2)
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.
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.
However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced.
For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in chapter 2.
taxmap/pubs/p590-000.htm#en_us_publink1000230282
Modified AGI limit for traditional IRA contributions increased.(p2)
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.
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. If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. See How Much Can You Deduct? in chapter 1.
taxmap/pubs/p590-000.htm#en_us_publink1000230284
Modified AGI limit for Roth IRA contributions increased.(p2)
For 2013, 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 $178,000. You cannot make a Roth IRA contribution if your modified AGI is $188,000 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 2013 and your modified AGI is at least $112,000. You cannot make a Roth IRA contribution if your modified AGI is $127,000 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 chapter 2.
taxmap/pubs/p590-000.htm#en_us_publink1000308962
Net Investment Income Tax.(p2)
For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). However, these distributions are taken into account when determining the modified adjusted gross income threshold. Distributions from a nonqualified retirement plan are included in net investment income. See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information.
taxmap/pubs/p590-000.htm#en_us_publink1000308963
Kay Bailey Hutchison Spousal IRA. (p2)
In 2013, spousal IRAs were renamed to Kay Bailey Hutchison Spousal IRAs. There are no changes to the rules regarding these IRAs. See Kay Bailey Hutchison Spousal IRA Limit in chapter 1 for more information.

What's New for 2014(p2)


taxmap/pubs/p590-000.htm#en_us_publink1000254865
Modified AGI limit for traditional IRA contributions increased.(p2)
For 2014, if you are 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 $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er),
  • More than $60,000 but less than $70,000 for a single individual or head of household, or
  • Less than $10,000 for a married individual filing a separate return.
If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA.
taxmap/pubs/p590-000.htm#en_us_publink1000254866
Modified AGI limit for Roth IRA contributions increased.(p3)
For 2014, 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 $181,000. You cannot make a Roth IRA contribution if your modified AGI is $191,000 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 2014 and your modified AGI is at least $114,000. You cannot make a Roth IRA contribution if your modified AGI is $129,000 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.

Reminders(p3)


taxmap/pubs/p590-000.htm#en_us_publink1000265764
Future developments.(p3)
For the latest information about developments related to Publication 590, such as legislation enacted after it was published, go to www.irs.gov/pub590.
taxmap/pubs/p590-000.htm#en_us_publink1000230290
Simplified employee pension (SEP).(p3)
SEP IRAs are not covered in this publication. They are covered in Publication 560, Retirement Plans for Small Business.
taxmap/pubs/p590-000.htm#en_us_publink1000230291
Deemed IRAs.(p3)
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/p590-000.htm#en_us_publink1000230292
Contributions to both traditional and Roth IRAs.(p3)
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 chapter 2.
taxmap/pubs/p590-000.htm#en_us_publink1000230294
Statement of required minimum distribution (RMD).(p3)
If an RMD is required from your IRA, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the RMD to you, or offer to calculate it for you. The report or offer must include the date by which the amount must be distributed. The report is due January 31 of the year in which the minimum distribution is required. It can be provided with the year-end fair market value statement that you normally get each year. No report is required for section 403(b) contracts (generally tax-sheltered annuities) or for IRAs of owners who have died.
taxmap/pubs/p590-000.htm#en_us_publink1000230296
IRA interest.(p3)
Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. Tax on your traditional IRA is generally deferred until you take a distribution. Do not report this interest on your return as tax-exempt interest. For more information on tax-exempt interest, see the instructions for your tax return.
taxmap/pubs/p590-000.htm#en_us_publink1000230301
Photographs of missing children.(p3)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

taxmap/pubs/p590-000.htm#en_us_publink1000270051Introduction

This publication discusses individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.
taxmap/pubs/p590-000.htm#en_us_publink1000230302

What are some tax advantages of an IRA?(p3)

For Use in Tax Year 2013
rule
Two tax advantages of an IRA are that:
taxmap/pubs/p590-000.htm#en_us_publink1000230303

What's in this publication?(p3)

For Use in Tax Year 2013
rule
This publication discusses traditional, Roth, and SIMPLE IRAs. It explains the rules for:
It also explains the penalties and additional taxes that apply when the rules are not followed. To assist you in complying with the tax rules for IRAs, this publication contains worksheets, sample forms, and tables, which can be found throughout the publication and in the appendices at the back of the publication.
taxmap/pubs/p590-000.htm#en_us_publink1000230304

How to use this publication.(p4)

For Use in Tax Year 2013
rule
The rules that you must follow depend on which type of IRA you have. Use Table I-1 to help you determine which parts of this publication to read. Also use Table I-1 if you were referred to this publication from instructions to a form.
taxmap/pubs/p590-000.htm#en_us_publink1000217477

Comments and suggestions.(p4)

For Use in Tax Year 2013
rule
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:

Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224


We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
You can send your comments from www.irs.gov/formspubs/. Click on "More Information" and then on "Comment on Tax Forms and Publications".
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
taxmap/pubs/p590-000.htm#en_us_publink1000217478
Ordering forms and publications.(p4)
Visit www.irs.gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received.

Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613


taxmap/pubs/p590-000.htm#en_us_publink1000217479
Tax questions.(p4)
If you have a tax question, check the information available on IRS.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.

taxmap/pubs/p590-000.htm#TXMP7503c0dd

Useful items

You may want to see:


Publications
 560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
 571 Tax-Sheltered Annuity Plans (403(b) Plans)
 575 Pension and Annuity Income
 939 General Rule for Pensions and Annuities
Forms (and instructions)
 W-4P: Withholding Certificate for Pension or Annuity Payments
 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
 5304-SIMPLE: Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–Not for Use With a Designated Financial Institution
 5305-S: SIMPLE Individual Retirement Trust Account
 5305-SA: SIMPLE Individual Retirement Custodial Account
 5305-SIMPLE: Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–for Use With a Designated Financial Institution
 5329: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts
 5498: IRA Contribution Information
 8606: Nondeductible IRAs
 8815: Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
 8839: Qualified Adoption Expenses
 8880: Credit for Qualified Retirement Savings Contributions
See chapter 5 for information about getting these publications and forms.
taxmap/pubs/p590-000.htm#en_us_publink1000291389

Table I-1. Using This Publication

IF you need
information on ...
THEN see ...
traditional IRAschapter 1.
Roth IRAschapter 2, and parts of
chapter 1.
SIMPLE IRAschapter 3.
the credit for qualified retirement savings contributions (the saver's credit)chapter 4.
how to keep a record of your contributions to, and distributions from, your traditional IRA(s) appendix A.
SEP IRAs and 401(k) plans Publication 560.
Coverdell education savings accounts (formerly called education IRAs) Publication 970.
IF for 2013, you
  • received social security benefits,
  • had taxable compensation,
  • contributed to a traditional IRA, and
  • you or your spouse was covered by an employer retirement plan,
and you want to...
THEN see ...
first figure your modified adjusted gross income (AGI)appendix B,  worksheet 1.
then figure how much of your traditional IRA contribution you can deductappendix B,  worksheet 2.
and finally figure how much of your social security is taxable appendix B,  worksheet 3.
taxmap/pubs/p590-000.htm#en_us_publink1000230320

Table I-2. How Are a Traditional IRA and a Roth IRA Different?

This table shows the differences between traditional and Roth IRAs. Answers in the middle column apply to traditional IRAs. Answers in the right column apply to Roth IRAs.

QuestionAnswer
 Traditional IRA? Roth IRA?
Is there an age limit on when I can open and contribute to aYes. You must not have reached age
701/2 by the end of the year. See Who Can Open a Traditional IRA? in chapter 1.
No. You can be any age. See Can You Contribute to a Roth IRA? in chapter 2.
If I earned more than $5,500 in 2013 ($6,500 if I was 50 or older by the end of 2013), is there a limit on how much I can contribute to a Yes. For 2013, you can contribute to a traditional IRA up to:
  • $5,500, or
  • $6,500 if you were age 50 or older by the end of 2013.

There is no upper limit on how much you can earn and still contribute. See How Much Can Be Contributed? in chapter 1.
Yes. For 2013, you may be able to contribute to a Roth IRA up to:
  • $5,500, or
  • $6,500 if you were age 50 or older by the end of 2013,

but the amount you can contribute may be less than that depending on your income, filing status, and if you contribute to another IRA. See How Much Can Be Contributed? and Table 2-1 in chapter 2.
Can I deduct contributions to aYes. You may be able to deduct your contributions to a traditional IRA depending on your income, filing status, whether you are covered by a retirement plan at work, and whether you receive social security benefits. See How Much Can You Deduct? in chapter 1. No. You can never deduct contributions to a Roth IRA. See What Is a Roth IRA? in chapter 2.
Do I have to file a form just because I contribute to aNot unless you make nondeductible contributions to your traditional IRA. In that case, you must file Form 8606. See Nondeductible Contributions in chapter 1. No. You do not have to file a form if you contribute to a Roth IRA. See Contributions not reported in chapter 2.
Do I have to start taking distributions when I reach a certain age from aYes. You must begin receiving required minimum distributions by April 1 of the year following the year you reach age 701/2. See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. No. If you are the original owner of a Roth IRA, you do not have to take distributions regardless of your age. See Are Distributions Taxable? in chapter 2. However, if you are the beneficiary of a Roth IRA, you may have to take distributions. See Distributions After Owner's Death in chapter 2.
How are distributions taxed from aDistributions from a traditional IRA are taxed as ordinary income, but if you made nondeductible contributions, not all of the distribution is taxable. See Are Distributions Taxable? in chapter 1. Distributions from a Roth IRA are not taxed as long as you meet certain criteria. See Are Distributions Taxable? in chapter 2.
Do I have to file a form just because I receive distributions from aNot unless you have ever made a nondeductible contribution to a traditional IRA. If you have, file Form 8606. See Nondeductible Contributions in chapter 1. Yes. File Form 8606 if you received distributions from a Roth IRA (other than a rollover, qualified charitable distribution, one-time distribution to fund an HSA, recharacterization, certain qualified distributions, or a return of certain contributions).