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Publication 590

Chapter 2
Roth IRAs(p57)

What's New for 2010(p57)


Modified AGI limit for Roth IRA contributions increased.(p57)

For 2010, your Roth IRA contribution limit is reduced (phased out) in the following situations. See Can You Contribute to a Roth IRA? in this chapter.

Conversions and rollovers to Roth IRAs.(p57)

Beginning in 2010, the modified AGI and filing status requirements for converting a traditional IRA or rolling over an employer plan to a Roth IRA are eliminated.
Also, for any 2010 conversion or rollover from an IRA or employer plan, other than a Roth IRA to a Roth IRA, any amounts that would be included as income will be included in income in equal amounts in 2011 and 2012. You can choose to include the entire amount in income in 2010. See Conversions and Rollover From Employer's Plan to a Roth IRA in this chapter for more details.

Catch-up contributions in certain employer bankruptcies.(p57)

The provision for additional catch-up contributions in certain employer bankruptcies does not apply for 2010 or later years.

What's New for 2011(p57)


Modified AGI limit for Roth IRA contributions increased.(p57)

For 2011, your Roth IRA contribution limit is reduced (phased out) in the following situations.



Deemed IRAs.(p57)

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:

Designated Roth accounts.(p57)

Designated Roth accounts are separate accounts under 401(k) or 403(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.


Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA.

Contributions not reported.(p57)

You do not report Roth IRA contributions on your return.

What Is a Roth IRA?(p57)

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.

Traditional IRA.(p58)

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