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

Chapter 2
Roth IRAs(p62)

For Use in Tax Year 2013

What's New for 2013(p62)


taxmap/pubs/p590-013.htm#en_us_publink1000308977
Roth IRA contribution limit.(p62)
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 this chapter.
taxmap/pubs/p590-013.htm#en_us_publink1000230962
Modified AGI limit for Roth IRA contributions increased.(p62)
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 this chapter.
taxmap/pubs/p590-013.htm#en_us_publink1000308979
Net Investment Income Tax.(p62)
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.

What's New for 2014(p63)


taxmap/pubs/p590-013.htm#en_us_publink1000253530
Modified AGI limit for Roth IRA contributions increased.(p63)
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(p63)


taxmap/pubs/p590-013.htm#en_us_publink1000230967
Deemed IRAs.(p63)
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.(p63)
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_publink1000270053Introduction

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.(p63)

For Use in Tax Year 2013
rule
You do not report Roth IRA contributions on your return.
taxmap/pubs/p590-013.htm#en_us_publink1000230969

What Is a Roth IRA?(p63)

For Use in Tax Year 2013
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 next). 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.(p63)

For Use in Tax Year 2013
rule
A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Traditional IRAs are discussed in chapter 1.