Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1
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Contents
Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1
Publication 590-B
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Distributions
from Individual
Retirement
Arrangements
(IRAs)
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
For use in preparing
Chapter 2. Roth IRAs . . . . . . . . . . . . . . . . . . . . . 33
What Is a Roth IRA? . . . . . . . . . . . . . . . . . . . . . 33
Are Distributions Taxable? . . . . . . . . . . . . . . . . . 33
Must You Withdraw or Use Assets? . . . . . . . . . . 37
2025 Returns
Chapter 1. Traditional IRAs . . . . . . . . . . . . . . . . . . 5
What if You Inherit an IRA? . . . . . . . . . . . . . . . . . 5
When Can You Withdraw or Use Assets? . . . . . . . 6
When Must You Withdraw Assets? (Required
Minimum Distributions) . . . . . . . . . . . . . . . . . . 6
Are Distributions Taxable? . . . . . . . . . . . . . . . . . 13
What Acts Result in Penalties or Additional
Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Early Distributions . . . . . . . . . . . . . . . . . . . . . . . 24
Early Distribution Repayments . . . . . . . . . . . . . . 29
Excess Accumulations (Insufficient
Distributions) . . . . . . . . . . . . . . . . . . . . . . . . 30
Chapter 3. Disaster-Related Relief . . . . . . . . . . . 38
Qualified Disaster Recovery Distributions . . . . . . 38
Taxation of Qualified Disaster Recovery
Distributions . . . . . . . . . . . . . . . . . . . . . . . . . 39
Repayment of Qualified Disaster Recovery
Distributions . . . . . . . . . . . . . . . . . . . . . . . . . 39
Recontribution of Qualified Disaster Recovery
Distributions for the Purchase or
Construction of a Main Home . . . . . . . . . . . . 40
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 41
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Future Developments
For the latest information about developments related to
Pub. 590-B, such as legislation enacted after it was
published, go to IRS.gov/Pub590B.
Reminders
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Jan 21, 2026
Excise tax relief for certain 2024 required minimum
distributions (RMDs). The IRS will not assert an excise
tax in 2024 for missed required minimum distributions if
certain requirements are met. See Notice 2024-35, available at IRS.gov/irb/2024-19_IRB#NOT-2024-35, for details.
Income on corrective distributions of excess contributions. The income on the corrective distribution of excess contributions made on or after December 29, 2022,
is no longer subject to the 10% additional tax on early
distributions. See Pub. 590-A for more information.
Publication 590-B (2025) Catalog Number 66303U
Department of the Treasury Internal Revenue Service www.irs.gov
Modification of required distribution rules for designated beneficiaries. There are new required minimum
distribution rules for certain beneficiaries who are designated beneficiaries when the IRA owner dies in a tax year
beginning after December 31, 2019. All distributions must
be made by the end of the 10th year after death, except
for distributions made to certain eligible designated beneficiaries. See 10-year rule, later, for more information.
Simplified employee pension (SEP) and SIMPLE
plans. SEP and SIMPLE IRAs aren’t covered in this publication. They are covered in Pub. 560, Retirement Plans
for Small Business.
Deemed IRAs. 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)
Introduction
This publication discusses distributions from individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside
money for retirement. For information about contributions
to an IRA, see Pub. 590-A.
What are some tax advantages of an IRA? Two tax advantages of an IRA are that:
• Contributions you make to an IRA may be fully or partially deductible, depending on which type of IRA you
have and on your circumstances; and
plan);
• Generally, amounts in your IRA (including earnings
maintained by a state, a political subdivision of a state,
or an agency or instrumentality of a state or political
subdivision of a state.
What's in this publication? This publication discusses
traditional and Roth IRAs. It explains the rules for:
• A tax-sheltered annuity plan (section 403(b) plan); and
• A deferred compensation plan (section 457 plan)
Statement of required minimum distribution (RMD).
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.
IRA interest. Although interest earned from your IRA is
generally not taxed in the year earned, it isn't tax-exempt
interest. Tax on your traditional IRA is generally deferred
until you take a distribution. Don't report this interest on
your return as tax-exempt interest. For more information
on tax-exempt interest, see the instructions for your tax return.
Net Investment Income Tax (NIIT). For purposes of the
NIIT, net investment income doesn't include distributions
from 401(a), 403(a), 403(b), or 457(b) plans, or IRAs.
However, these distributions are taken into account when
determining the modified adjusted gross income threshold. Distributions from retirement plans other than 401(a),
403(a), 403(b), or 457(b) plans, or IRAs, are included in
net investment income.
See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more
information.
2
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Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring
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and gains) aren't taxed until distributed. In some cases, amounts aren't taxed at all if distributed according
to the rules.
• Handling an inherited IRA, and
• Receiving distributions (making withdrawals) from an
IRA.
It also explains the penalties and additional taxes that
apply when the rules aren't 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 end of the publication.
How to use this publication. 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.
Comments and suggestions. We welcome your comments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
FormComments. Or, you can write to the Internal Revenue
Service, Tax Forms and Publications, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224.
Although we can’t respond individually to each comment received, we do appreciate your feedback and will
consider your comments and suggestions as we revise
our tax forms, instructions, and publications. Don’t send
tax questions, tax returns, or payments to the above address.
Publication 590-B (2025)
Getting answers to your tax questions. If you have
a tax question not answered by this publication or the How
To Get Tax Help section at the end of this publication, go
to the IRS Interactive Tax Assistant page at IRS.gov/
Help/ITA where you can find topics by using the search
feature or viewing the categories listed.
Getting tax forms, instructions, and publications.
Go to IRS.gov/Forms to download current and prior-year
forms, instructions, and publications.
Ordering tax forms, instructions, and publications.
Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order
prior-year forms and instructions. The IRS will process
your order for forms and publications as soon as possible.
Don’t resubmit requests you’ve already sent us. You can
get forms and publications faster online.
Useful Items
You may want to see:
W-4R Withholding Certificate for Nonperiodic
Payments and Eligible Rollover Distributions
W-4R
1099-R Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
1099-R
5304-SIMPLE Savings Incentive Match Plan for
Employees of Small Employers (SIMPLE)—Not
for Use With a Designated Financial Institution
5304-SIMPLE
5305-S SIMPLE Individual Retirement Trust Account
5305-S
5305-SA SIMPLE Individual Retirement Custodial
Account
5305-SA
5305-SIMPLE Savings Incentive Match Plan for
Employees of Small Employers (SIMPLE)—for
Use With a Designated Financial Institution
5305-SIMPLE
5329 Additional Taxes on Qualified Plans (Including
IRAs) and Other Tax-Favored Accounts
5329
5498 IRA Contribution Information
5498
Publications
590-A Contributions to Individual Retirement
Arrangements (IRAs)
590-A
560 Retirement Plans for Small Business (SEP,
SIMPLE, and Qualified Plans)
560
571 Tax-Sheltered Annuity Plans (403(b) Plans)
571
575 Pension and Annuity Income
575
939 General Rule for Pensions and Annuities
939
Forms (and Instructions)
W-4P Withholding Certificate for Periodic Pension or
Annuity Payments
W-4P
8606 Nondeductible IRAs
8606
8815 Exclusion of Interest From Series EE and I U.S.
Savings Bonds Issued After 1989
8815
8839 Qualified Adoption Expenses
8839
8880 Credit for Qualified Retirement Savings
Contributions
8880
8915-F Qualified Disaster Retirement Plan
Distributions and Repayments
8915-F
See How To Get Tax Help, later, for information about getting these publications and forms.
Table I-1. Using This Publication
IF you need information on...
THEN see...
traditional IRAs (not including traditional SIMPLE IRAs)
chapter 1.
Roth IRAs (not including Roth SIMPLE IRAs)
chapter 2, and parts of chapter 1.
disaster-related relief
chapter 3.
SEP IRAs, SIMPLE IRAs, and 401(k) plans
Pub. 560.
Coverdell education savings accounts (formerly called
education IRAs)
Pub. 970.
Publication 590-B (2025)
3
Table I-2. How Are a Traditional IRA and a
Roth IRA Different?
Question
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.
Answer
Traditional IRA?
Roth IRA?
Do I have to start taking distributions
when I reach a certain age from a . . . . .
Yes. You must begin receiving required
minimum distributions by April 1 of the
year following the year you reach age
73. See When Must You Withdraw
Assets? (Required Minimum
Distributions) in chapter 1.
No. If you are the original owner of a
Roth IRA, you don't 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 a . . . . .
Distributions 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 aren't
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 a . . . . . . . . . .
Not unless you have ever made a
nondeductible contribution to a
traditional IRA or repaid, in whole or
part, emergency personal expense
distributions, qualified birth or adoption
distributions, a domestic abuse victim
distribution, or a terminally ill individual
distribution. If you have, file Form 8606.
See Nondeductible Contributions in
Pub. 590-A.
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) or
repaid, in whole or part, emergency
personal expense distributions,
qualified birth or adoption distributions,
a domestic abuse victim distribution, or
a terminally ill individual distribution.
4
Publication 590-B (2025)
Roth IRAs are discussed in chapter 2. SIMPLE IRAs
are discussed in Pub. 560.
1.
What if You Inherit an IRA?
Traditional IRAs
Reminders
Types of IRAs. An IRA can be either a traditional IRA or
a Roth IRA. In general, individuals may make their own
contributions to their traditional IRAs or Roth IRAs. In addition, certain employers have arrangements under which
the employer may contribute to IRAs of their employees.
Under a SEP arrangement, an employer contributes to
traditional IRAs (sometimes referred to as traditional SEP
IRAs) or Roth IRAs (sometimes referred to as Roth SEP
IRAs) of its employees. Individuals may separately make
their own contributions to the same IRAs to which their
employer contributes under a SEP arrangement.
Under a SIMPLE IRA plan, an employer contributes
salary reduction contributions (at the election of the employee), matching contributions and/or nonelective contributions to traditional IRAs (sometimes referred to as traditional SIMPLE IRAs) or Roth IRAs (sometimes referred to
as Roth SIMPLE IRAs) of its employees. However, a SIMPLE IRA (whether a traditional SIMPLE IRA or a Roth
SIMPLE IRA) is subject to certain restrictions that do not
generally apply to other traditional IRAs or Roth IRAs. For
example, an individual cannot make their own contributions to a SIMPLE IRA. In addition, there are various restrictions related to distributions and contributions during
the initial two years of participation in the SIMPLE IRA
plan.
References in this publication to traditional IRAs generally include traditional SEP IRAs but do not include traditional SIMPLE IRAs, unless otherwise stated. Likewise,
references to Roth IRAs generally include Roth SEP IRAs
but do not include Roth SIMPLE IRAs, unless otherwise
stated.
Introduction
This chapter discusses distributions from a traditional IRA.
In this publication, the original IRA (sometimes called an
ordinary or regular IRA) is referred to as a “traditional IRA.”
For purposes of this publication, a traditional IRA is any
IRA that isn’t a Roth IRA or a SIMPLE IRA. Traditional
IRAs include traditional IRAs that receive employer contributions from SEP arrangements. The following are two advantages of a traditional IRA.
• You may be able to deduct some or all of your contributions to it, depending on your circumstances.
• Generally, amounts in your IRA, including earnings
and gains, aren’t taxed until they are distributed.
Roth IRAs are discussed in chapter 2. SIMPLE IRAs
are discussed in Pub. 560.
Publication 590-B (2025)
Chapter 1
If you inherit a traditional IRA, you are called a beneficiary.
A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after the owner dies.
Beneficiaries of a traditional IRA must include in their
gross income any taxable distributions they receive.
Tip: IRAs inherited from decedents who died in 2019
or earlier are subject to different rules. See Retirement
Topics - Beneficiary, for more information.
Inherited from spouse. If you inherit a traditional IRA
from your spouse, you generally have the following two
choices.
1. Treat it as your own IRA by designating yourself as the
account owner; or
2. Treat it as your own by rolling it over into your IRA, or
to the extent it is taxable, into a:
a. Qualified employer plan,
b. Qualified employee annuity plan (section 403(a)
plan),
c. Tax-sheltered annuity plan (section 403(b) plan),
d. Deferred compensation plan of a state or local
government (section 457 plan), or
3. Treat yourself as the beneficiary rather than treating
the IRA as your own.
Treating it as your own. You will be considered to
have chosen to treat the IRA as your own if:
• Contributions (including rollover contributions) are
made to the inherited IRA, or
• You don't take the required minimum distribution for a
year as a beneficiary of the IRA.
You will only be considered to have chosen to treat the
IRA as your own if:
• You are the sole beneficiary of the IRA, and
• You have an unlimited right to withdraw amounts from
it.
However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over
into your own IRA within the 60-day time limit, as long as
the distribution isn't a required distribution, even if you
aren't the sole beneficiary of your deceased spouse's IRA.
Inherited from someone other than spouse. If you inherit a traditional IRA from anyone other than your deceased spouse, you can't treat the inherited IRA as your
own. This means that you can't make any contributions to
the IRA. It also means you can't roll over any amounts into
or out of the inherited IRA. However, you can make a
trustee-to-trustee transfer as long as the IRA into which
Traditional IRAs
5
amounts are being moved is set up and maintained in the
name of the deceased IRA owner for the benefit of you as
beneficiary.
Like the original owner, you generally won't owe tax on
the assets in the IRA until you receive distributions from it.
You must begin receiving distributions from the IRA under
the rules for distributions that apply to beneficiaries.
IRA with basis. If you inherit a traditional IRA from a person who had basis in the IRA because of nondeductible
contributions, that basis remains with the IRA. Unless you
are the decedent's spouse and choose to treat the IRA as
your own, you can't combine this basis with any basis you
have in your own traditional IRA(s) or any basis in traditional IRA(s) you inherited from other decedents. If you
take distributions from both an inherited IRA and your IRA,
and each has basis, you must complete separate Forms
8606 to determine the taxable and nontaxable portions of
those distributions.
Federal estate tax deduction. A beneficiary may be
able to claim a deduction for estate tax resulting from certain distributions from a traditional IRA. The beneficiary
can deduct the estate tax paid on any part of a distribution
that is income with respect to a decedent. The beneficiary
can take the deduction for the tax year the income is reported. For information on claiming this deduction, see
Estate Tax Deduction under Other Tax Information in Pub.
559.
Any taxable part of a distribution that isn't income with
respect to a decedent is a payment the beneficiary must
include in income. However, the beneficiary can't take any
deduction for estate tax.
A surviving spouse can roll over the distribution to another traditional IRA and avoid including it in income for
the year received.
More information. For more information about rollovers,
required distributions, and inherited IRAs, see:
• Rollovers under Can You Move Retirement Plan Assets? in chapter 1 of Pub. 590-A;
• When Must You Withdraw Assets? (Required Minimum Distributions), later; and
• The discussion of IRA Beneficiaries, later, under
When Must You Withdraw Assets? (Required Minimum Distributions).
When Can You Withdraw or
Use Assets?
You can withdraw or use your traditional IRA assets at any
time. However, a 10% additional tax generally applies if
you withdraw or use IRA assets before you reach age
591/2. This is explained under Age 59 1/2 Rule under Early
Distributions, later.
You can generally make a tax-free withdrawal of contributions if you do it before the due date for filing your tax
return for the year in which you made them and the 10%
6
Chapter 1
additional tax will not apply. See Contributions Returned
Before Due Date of Return in Pub. 590-A for more information.
If you were affected by a qualified disaster, see chapter 3.
When Must You Withdraw
Assets? (Required Minimum
Distributions)
You can't keep funds in a traditional IRA (including SEP
and SIMPLE IRAs) indefinitely. Eventually, they must be
distributed. If there are no distributions, or if the distributions aren't large enough, you may have to pay an excise
tax on the amount not distributed as required. See Excess
Accumulations (Insufficient Distributions), later, under
What Acts Result in Penalties or Additional Taxes. The requirements for distributing IRA funds differ, depending on
whether you are the IRA owner or the beneficiary of a decedent's IRA.
Required minimum distribution (RMD). The amount
that must be distributed each year is referred to as the required minimum distribution.
Note: A qualified charitable distribution will count towards your required minimum distribution. See Qualified
charitable distributions (QCDs) under Are Distributions
Taxable, later.
Distributions not eligible for rollover. Amounts that
must be distributed (required minimum distributions) during a particular year aren't eligible for rollover treatment.
IRA Owners
Required beginning date. If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year
in which you reach your applicable required beginning
date.
Your required beginning date. See the following to determine your applicable required beginning date.
Age 73 for tax years 2023 and later. If you reach
age 72 after December 31, 2022, you must begin receiving required minimum distributions by April 1 of the year
following the year you reach the age 73.
Age 72 for tax years 2020, 2021, or 2022. If you
reached age 701/2 after December 31, 2019, but had not
reached age 72 before January 1, 2023, you had to begin
receiving required minimum distributions by April 1 of the
year following the year you reach age 72.
Age 701/2 for tax years 2019 or earlier. If you
reached age 701/2 before January 1, 2020, you were required to begin receiving required minimum distributions
Traditional IRAs
Publication 590-B (2025)
by April 1 of the year following the year you reach age
701/2.
Distributions by the required beginning date. You
must receive at least a minimum amount for each year
starting with the year before the year that contains your required beginning date.
If an IRA owner dies after reaching age 73, but before
the IRA owner's required beginning date, no minimum distribution is required for that year because death occurred
before the required beginning date.
Caution: Even if you begin receiving distributions before you reach age 73, you must begin calculating and receiving RMDs by your required beginning date.
More than minimum received. If, in any year, you receive more than the required minimum distribution for that
year, you won't receive credit for the additional amount
when determining the required minimum distributions for
future years. This means that if you receive more than
your required minimum distribution in 1 year, you can't
treat the excess (the amount that is more than the required
minimum distribution) as part of your required minimum
distribution for any later year. However, any amount distributed in the year you become age 73 will be credited toward the amount that must be distributed by April 1 of the
following year.
Distributions after the required beginning date. The
required minimum distribution for any year after the year
you reach age 73 must be made by December 31 of that
later year.
Distributions from individual retirement accounts. If
you are the owner of a traditional IRA that is an individual
retirement account, you or your trustee must figure the required minimum distribution for each year. See Figuring
the Owner's Required Minimum Distribution, later.
Distributions from individual retirement annuities. If
your traditional IRA is an individual retirement annuity,
special rules apply to figuring the required minimum distribution. For more information on rules for annuities, see
Treasury Regulations section 1.401(a)(9)-6. These regulations can be read in many libraries, and IRS offices, and
online at IRS.gov.
Change in marital status. For purposes of figuring your
required minimum distribution, your marital status is determined as of January 1 of each year. If your spouse is a
beneficiary of your IRA on January 1, they will remain a
beneficiary for the entire year even if you get divorced or
your spouse dies during the year.
For purposes of determining your applicable denominator (the number used to figure your required minimum distribution amount), a change in beneficiary is effective in
the year following the year of death or divorce.
Change of beneficiary. If your spouse is the sole beneficiary of your IRA, and they die before you, your spouse
won't fail to be your sole beneficiary for the year they died
solely because someone other than your spouse is named
Publication 590-B (2025)
Chapter 1
a beneficiary for the rest of that year. However, if you get
divorced during the year and change the beneficiary designation on the IRA during that same year, your former
spouse won't be treated as the sole beneficiary for that
year.
Figuring the Owner's Required Minimum
Distribution
Figure your required minimum distribution for each year by
dividing the IRA account balance (defined next) as of the
close of business on December 31 of the preceding year
by the applicable denominator or life expectancy. Tables
showing applicable denominators and life expectancies
are found in Appendix B and are discussed later.
See Which Table Do You Use To Determine Your Required Minimum Distribution later for more information
IRA account balance. The IRA account balance is the
amount in the IRA at the end of the year preceding the
year for which the required minimum distribution is being
figured.
Contributions. Contributions increase the account
balance in the year they are made. If a contribution for last
year isn't made until after December 31 of last year, it increases the account balance for this year, but not for last
year. Disregard contributions made after December 31 of
last year in determining your required minimum distribution for this year.
Outstanding rollovers. The IRA account balance is
adjusted by outstanding rollovers that aren't in any account at the end of the preceding year.
For a rollover from a qualified plan or another IRA that
wasn't in any account at the end of the preceding year, increase the account balance of the receiving IRA by the
rollover amount valued as of the date of receipt.
No recharacterizations of conversions made in
2018 or later. A conversion of a traditional IRA to a Roth
IRA, and a rollover from any other eligible retirement plan
to a Roth IRA, made in tax years beginning after December 31, 2017, cannot be recharacterized as having been
made to a traditional IRA.
Distributions. Distributions reduce the account balance in the year they are made. A distribution for last year
made after December 31 of last year reduces the account
balance for this year, but not for last year. Disregard distributions made after December 31 of last year in determining your required minimum distribution for this year.
Applicable denominator. This is the number by which
you divide your account balance as of December 31 of
last year in order to figure your required minimum distribution.
Life expectancy. You are required to make distributions
over your lifetime or a period that represents the combined
life expectancies of you and your designated beneficiary, if
applicable. You are able to meet this requirement when
you use your applicable denominator for each year you
Traditional IRAs
7
make your required minimum distribution. You will be able
to locate your applicable denominator in one of the three
tables located in Appendix B. The life expectancy tables
are as follows.
• Table I (Single Life Expectancy).
• Table II (Joint and Last Survivor Life Expectancy).
• Table III (Uniform Lifetime).
If you must use Table I or Table III, your applicable denominator for 2026 is listed in the table next to your age as
of your birthday in 2026. If you use Table II, your applicable denominator for 2026 is listed where the row or column containing your age as of your birthday in 2026 intersects with the row or column containing your spouse's age
as of their birthday in 2026.
Distributions during your lifetime. Required minimum
distributions during your lifetime are figured using the current year’s applicable denominator that is generally determined using Table III in Appendix B. However, if the sole
beneficiary of your IRA is your spouse who is more than
10 years younger than you, see Sole beneficiary spouse
who is more than 10 years younger below.
To figure the required minimum distribution for 2026, divide your account balance at the end of 2025 by the applicable denominator from the table. This is the applicable
denominator listed next to your age (as of your birthday in
2026) in Table III in Appendix B, unless the sole beneficiary of your IRA is your spouse who is more than 10
years younger than you.
Example. You own a traditional IRA. Your account balance at the end of 2025 was $100,000. You are married
and your spouse, who is the sole beneficiary of your IRA,
is 6 years younger than you. You turn 75 years old in 2026.
You use Table III. Your applicable denominator is 24.6.
Your required minimum distribution for 2026 would be
$4,065 ($100,000 ÷ 24.6).
Sole beneficiary spouse who is more than 10
years younger. If the sole beneficiary of your IRA is your
spouse and your spouse is more than 10 years younger
than you, use the applicable denominator from Table II in
Appendix B.
The applicable denominator to use is located where the
row or column containing your age as of your birthday in
2026 intersects with the row or column containing your
spouse's age as of their birthday in 2026.
You figure your required minimum distribution for 2026
by dividing your account balance at the end of 2025 by the
applicable denominator from Table II in Appendix B.
Example. You own a traditional IRA. Your account balance at the end of 2025 was $100,000. You are married
and your spouse, who is the sole beneficiary of your IRA,
is 11 years younger than you. You turn 75 in 2026 and
your spouse turns 64. You use Table II. Your applicable denominator is 25.3. Your required minimum distribution for
2026 would be $3,953 ($100,000 ÷ 25.3).
Special rules where portion of account balance is
used to purchase an annuity. If you purchase an
8
Chapter 1
annuity contract with a portion of your IRA account balance, then special rules may apply in determining your
RMD from the remaining account balance. Specifically,
you may elect to satisfy the RMD requirement for the year
by combining the value of the annuity contract with the remaining account balance and reducing the RMD by the
amount of the annuity payments.
Example. You own a traditional IRA. In 2025, you purchase an annuity contract with a portion of your account
balance. As of December 31, 2025, your remaining account balance is $100,000, and the value of the annuity
contract is $200,000. Your annuity payments in 2025 total
$8,000.
To use the rule described in the paragraph above, your
RMD due from the remaining account balance for 2026
would be the excess of the RMD based on the total of the
remaining account balance added to the value of the annuity contract ($300,000), over the $8,000 annuity payments.
Distributions in the year of the owner's death. The required minimum distribution for the year of the owner's
death depends on whether the owner died before the required beginning date, defined earlier.
If the owner died before the required beginning date,
there is no required minimum distribution in the year of the
owner's death. For years after the year of the owner's
death, see Owner Died Before Required Beginning Date,
later, under IRA Beneficiaries.
If the owner died on or after the required beginning
date, the IRA beneficiaries are responsible for figuring and
distributing the owner's required minimum distribution in
the year of death. The owner's required minimum distribution for the year of death is generally based on Table III in
Appendix B. However, if the sole beneficiary of the IRA is
the owner's spouse who is more than 10 years younger
than the owner, use the life expectancy from Table II.
Note: You figure the required minimum distribution for
the year in which an IRA owner dies as if the owner lived
for the entire year.
IRA Beneficiaries
The rules for determining required minimum distributions
for beneficiaries depend on whether:
• The beneficiary is the surviving spouse.
• The beneficiary is an eligible designated beneficiary
(defined later) other than the surviving spouse.
• The beneficiary is an individual (other than an eligible
designated beneficiary).
• The beneficiary isn't an individual (for example, the
beneficiary is the owner's estate). (But see Trust as
beneficiary, later, for a discussion about treating trust
beneficiaries as designated beneficiaries.)
• The IRA owner died before the required beginning
date, or died on or after the required beginning date.
Traditional IRAs
Publication 590-B (2025)
The following paragraphs explain the rules for required
minimum distributions and beneficiaries.
Caution: If you are a beneficiary of an inherited traditional IRA and you do not take the required minimum distribution for the year, discussed in this chapter under
When Must You Withdraw Assets? (Required Minimum
Distributions), you may have to pay an excise tax for that
year on the amount not distributed as required. For details, see Excess Accumulations (Insufficient Distributions)
under What Acts Result in Penalties or Additional Taxes,
later in this chapter.
Surviving spouse. If you are the surviving spouse who
is the sole beneficiary of your deceased spouse's IRA, you
may elect to be treated as the owner and not as the beneficiary. If you elect to be treated as the owner, you determine the required minimum distribution (if any) as if you
were the owner beginning with the year you elect or are
deemed to be the owner. For details, see Inherited from
spouse under What if You Inherit an IRA, earlier in this
chapter.
Note: If you become the owner in the year your deceased spouse died, don't determine the required minimum distribution for that year using your life expectancy;
rather, you must take the deceased owner's required minimum distribution for that year (to the extent it wasn't already distributed to the owner before their death).
Caution: You can never make a rollover contribution of
a required minimum distribution. Any rollover contribution
of a required minimum distribution is subject to the 6% tax
on excess contributions. See chapter 1 of Pub. 590-A for
more information on the tax on excess contributions.
Tip: For any year after the owner’s death, where a surviving spouse is the sole designated beneficiary of the account and they fail to take a required minimum distribution
(if one is required) by December 31 under the rules discussed below for beneficiaries, the surviving spouse will
be deemed the owner of the IRA. For details, see Inherited
from spouse under What if You Inherit an IRA, earlier in
this chapter.
Date the designated beneficiary is determined. Generally, the designated beneficiary is determined on September 30 of the calendar year following the calendar year
of the IRA owner's death. In order to be a designated beneficiary, an individual must be a beneficiary as of the date
of death. Any person who was a beneficiary on the date of
the owner's death, but isn't a beneficiary on September 30
of the calendar year following the calendar year of the
owner's death (because, for example, the beneficiary disclaimed entitlement or received their entire benefit), won't
be taken into account in determining the designated beneficiary.
Note: If an individual who is a beneficiary as of the
owner's date of death dies before September 30 of the
year following the year of the owner's death without disclaiming entitlement to benefits, that individual, rather than
Publication 590-B (2025)
Chapter 1
their successor beneficiary, continues to be treated as a
beneficiary for determining the applicable denominator.
For the exception to this rule, see Death of surviving
spouse prior to date distributions begin, later.
More than one beneficiary. If an IRA has more than one
beneficiary or a trust is named as beneficiary, see Miscellaneous Rules for Required Minimum Distributions, later.
Eligible designated beneficiaries. An IRA beneficiary
is an eligible designated beneficiary if the beneficiary is
the owner's surviving spouse, the owner's minor child, a
disabled individual, a chronically ill individual, or any other
individual who is not more than 10 years younger than the
IRA owner.
Death of a beneficiary. In general, the beneficiaries of a
deceased beneficiary must continue to take the required
minimum distributions after the deceased beneficiary's
death. However, the beneficiaries of a deceased beneficiary don't calculate required minimum distributions using
their own life expectancies. Instead, the deceased beneficiary's remaining interest must be distributed within 10
years after the beneficiary's death, or in some cases
within 10 years after the owner's death. See 10-year rule,
later.
Owner Died on or After Required Beginning
Date
If the owner died on or after their required beginning date
(defined earlier) and you are a designated beneficiary,
base your required minimum distributions for years after
the year of the owner’s death on the longer of:
• Your single life expectancy shown in Table I in Appendix B; or
• The owner's life expectancy.
If there is no designated beneficiary, use the owner's
life expectancy.
Owner's life expectancy. You use the owner’s life expectancy to calculate required minimum distributions
when the owner dies on or after the required beginning
date and there is no designated beneficiary as of September 30 of the year following the year of the owner’s death.
In this case, use the owner’s life expectancy for their
age as of the owner’s birthday in the year of death and reduce it by 1 for each subsequent year. If the beneficiary is
older than the deceased IRA owner, use the owner’s life
expectancy in the year of death (reduced by 1 for each
subsequent year).
Surviving spouse is sole designated beneficiary. If
you are the owner’s surviving spouse, then the applicable
denominator continues to be determined each subsequent year using Table I . However, if you elect to treat the
inherited IRA as your own, you will use Table III.
Designated beneficiary who is not an eligible designated beneficiary. Distributions to a designated beneficiary who is not an eligible designated beneficiary must
Traditional IRAs
9
be completed within 10 years of the death of the owner.
See 10-year rule, later.
Owner Died Before Required Beginning
Date
If the owner died before their required beginning date (defined earlier) and you are an eligible designated beneficiary (such as and including a surviving spouse who is a
sole survivor), you must generally figure your required
minimum distributions for the year after the year of the
owner's death using your single life expectancy shown in
Table I.
However, if you are the surviving spouse, use Table III if
you elect to treat the IRA as your own. See Inherited from
spouse under What if You Inherit an IRA, earlier, for more
information.
For each subsequent calendar year, if you are not the
surviving spouse, the applicable denominator is reduced
by one for each calendar year that has elapsed after the
calendar year following the employee's death. If you are
the owner's surviving spouse, then the applicable denominator continues to be determined each subsequent year,
using either Table I or Table III.
However, there are situations where a beneficiary may
be required to take the entire account balance by the end
of the 10th year following the year of the owner's death.
See 10-year rule, later.
If the owner’s beneficiary isn’t an individual (for example, if the beneficiary is the owner’s estate), the 5-year
rule, discussed later, applies.
Special rules for surviving spouse. If the owner died
before their required beginning date and the surviving
spouse is the sole designated beneficiary, that spouse
can elect to be treated as the IRA owner.
Year of first required distribution. If the owner died
before the year in which they were required to begin receiving required minimum distributions and the surviving
spouse is the IRA owner’s sole beneficiary, the spouse
isn’t required to begin receiving minimum distributions until the end of the year in which the IRA owner would have
reached their required beginning date. See Your required
beginning date for more information.
Death of surviving spouse prior to date distributions begin. If the surviving spouse dies before December 31 of the year they must begin receiving required minimum distributions, the surviving spouse will be treated as
if they were the owner of the IRA.
This rule doesn't apply to the surviving spouse of a surviving spouse.
Example 1. Your spouse died in 2022, at age 65. You
are the sole designated beneficiary of your spouse’s traditional IRA. You don't need to take any required minimum
distributions until December 31 of 2030, the year your
spouse would have reached age 73. If you die prior to that
10
Chapter 1
date, you will be treated as the owner of the IRA for purposes of determining the required distributions to your beneficiaries. For example, if you die in 2025, your beneficiaries
won't have any required minimum distributions for 2025
(because you, treated as the owner, died prior to your required beginning date). Your beneficiaries must start taking distributions under the general rules for an owner who
died prior to the required beginning date.
Example 2. The facts are the same as in Example 1,
except your sole beneficiary upon your death in 2025 is
your surviving spouse. Your surviving spouse can't wait
until the year you would have turned age 73 to take distributions using their life expectancy. Also, if your surviving
spouse dies prior to the date they are required to take a
distribution, they aren’t treated as the owner of the account. Just like any other individual beneficiary of an
owner who dies before the required beginning date, your
surviving spouse must start taking distributions in 2026
based on their life expectancy (or elect to fully distribute
the account under the 10-year rule by the end of 2035).
5-year rule. The 5-year rule requires the IRA beneficiaries who are not taking life expectancy payments to
withdraw the entire balance of the IRA by December 31 of
the year containing the fifth anniversary of the owner’s
death. For example, if the owner died in 2025, the beneficiary would have to fully distribute the IRA by December
31, 2030.
The 5-year rule applies to beneficiaries who are not
designated beneficiaries if the owner died before their required beginning date (such as an estate or trust (but see
Trust as beneficiary, later)). Before 2020, the 5-year rule
also applied to designated beneficiaries who weren’t taking life expectancy payments. If the owner died after 2019
and the beneficiary is an individual who is a designated
beneficiary, see the 10-year rule, for more information.
10-year rule. The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to
withdraw the entire balance of the IRA by December 31 of
the year containing the 10th anniversary of the owner’s
death. For example, if the owner died in 2025, the beneficiary would have to fully distribute the IRA by December
31, 2035.
The 10-year rule applies if (1) the beneficiary is an eligible designated beneficiary who elects the 10-year rule, if
the owner died before reaching their required beginning
date; or (2) the beneficiary is a designated beneficiary
who is not an eligible designated beneficiary, regardless
of whether the owner died before reaching their required
beginning date.
For a beneficiary receiving life expectancy payments
who is either an eligible designated beneficiary or a minor
child, the 10-year rule also applies to the remaining
amounts in the IRA upon the death of the eligible designated beneficiary or upon the minor child beneficiary reaching the age of majority. In either of those cases, the
10-year period ends on December 31 of the year containing the 10th anniversary of the eligible designated beneficiary's death or the child's attainment of majority.
Traditional IRAs
Publication 590-B (2025)
Payment under the 10-year rule. If the IRA owner
dies before the required beginning date and the 10-year
rule applies, no distribution is required for any year before
the 10th year.
Individual designated beneficiaries. The terms of
most IRAs require individual designated beneficiaries,
who are eligible designated beneficiaries, to take required
minimum distributions using the life expectancy rules (explained later) unless such beneficiaries elect to take distributions using the 10-year rule.
The deadline for making this election is the earlier of
December 31 of the year the beneficiary must take the
first required distribution, using their life expectancy or December 31 of the 10th anniversary for the 10-year rule.
If the individual designated beneficiary is not an eligible
designated beneficiary, the beneficiary is required to fully
distribute the IRA by the 10th anniversary of the owner's
death under the 10-year rule.
Tip: Review the IRA plan documents or consult with
the IRA custodian or trustee for specifics on the 5- or
10-year rule provisions, where applicable, of any particular
IRA.
Caution: If the 5-year rule applies, the amount remaining in the IRA, if any, after December 31 of the year containing the fifth anniversary of the owner's death is subject
to the excise tax detailed in Excess Accumulations (Insufficient Distributions), later.
Caution: If the 10-year rule applies, the amount remaining in the IRA, if any, after December 31 of the year
containing the 10th anniversary of the owner's death is
subject to the excise tax detailed in Excess Accumulations
(Insufficient Distributions), later.
Figuring the Beneficiary's RMD
How you figure the required minimum distribution depends on whether the beneficiary is an individual or some
other entity, such as a trust or estate.
Beneficiary is an individual. If the beneficiary is an individual, figure the required minimum distribution for 2026
as follows.
Life expectancy payments. Divide the account balance at the end of 2025 by the appropriate life expectancy
from the appropriate table in Appendix B. See Which Table Do You Use To Determine Your Required Minimum
Distribution for information on which table to use for figuring your RMD.
Spouse as sole designated beneficiary. Several
special rules affect figuring your RMD if you, as a spouse,
are the sole designated beneficiary of the IRA owner.
If you are the surviving spouse of the IRA owner and
the sole designated beneficiary of the IRA, you can elect
to treat the inherited IRA as your own. See Special rules
for surviving spouse, earlier, for more information.
If you continue to be treated as a beneficiary of the
owner, you may use the applicable denominator based on
Publication 590-B (2025)
Chapter 1
the life expectancy you find in Table III to determine your
RMD.
Whether the IRA owner had begun receiving RMDs
also affects how you figure your RMDs. See Owner Died
on or After Required Beginning Date and Owner Died Before Required Beginning Date, earlier.
See Which Table Do You Use To Determine Your Required Minimum Distribution for information on which table
to use for figuring your RMD.
Other designated beneficiary. Several special rules affect figuring your RMD if you are a nonspouse designated
beneficiary of the IRA owner.
As with the spousal beneficiary discussed earlier,
whether the IRA owner had begun receiving RMDs affects
how you figure your RMDs. See Owner Died on or After
Required Beginning Date and Owner Died Before Required Beginning Date, earlier.
See Which Table Do You Use To Determine Your Required Minimum Distribution, later, for information on
which table to use for figuring your RMD. For more information, also see Individual designated beneficiaries, earlier.
Beneficiary not an individual. See the 5-year rule if
the owner died before the owner's required beginning date
and the beneficiary is not an individual (such as an estate
or trust (but see Trust as beneficiary, later)).
Which Table Do You Use To Determine
Your Required Minimum Distribution?
There are three different life expectancy tables. The tables
are found in Appendix B of this publication. You will use
only one the tables to figure your required minimum distribution for each traditional IRA. Determine which one to
use as follows.
Table I (Single Life Expectancy). Use Table I for years
after the year of the owner’s death if you are the owner’s
eligible designated beneficiary. If you are the owner's surviving spouse and sole designated beneficiary, see Table
III, later, for more information.
If you are the owner’s eligible designated beneficiary,
find your life expectancy for the year following the owner’s
death (the year your distributions must begin). Use your
age as of your birthday to find your applicable denominator. Reduce your applicable denominator by one for each
year following the year your distributions begin.
If there is no designated beneficiary as of September
30 of the year following the year of the IRA owner’s death,
use the applicable denominator based on the owner’s age
as of their birthday in the calendar year of their death. For
each subsequent year reduce the applicable denominator
by one.
Example. You are an eligible designated beneficiary
figuring your first required minimum distribution. Distributions must begin in 2026. You become age 57 in 2026.
You use Table I. Your applicable denominator for 2026 is
29.8.
Traditional IRAs
11
Table II (Joint and Last Survivor Life Expectancy).
Use Table II if you are the IRA owner and your spouse is
both your sole designated beneficiary and more than 10
years younger than you.
For your first distribution by the required beginning
date, use your age and your spouse’s age as of your birthdays in the year you become age 73. This would be the
number located in the row and column combination which
includes both your age as of your birthday and your spouse’s age as of their birthday in 2026.
For each subsequent year, use your ages as of your
birthdays in the subsequent year.
Note: Use this table and method for figuring the applicable denominator in the year of the owner's death if the
owner died after the required beginning date and this is
the table that would have been used had they not died.
Table III (Uniform Lifetime). Use Table III if you are the
IRA owner and your spouse isn’t the sole designated beneficiary or if your spouse is the sole designated beneficiary of your IRA and not more than 10 years younger than
you.
Use your age as of your birthday in the year you become age 73 to meet your first distribution by your required beginning date. If you are figuring your required
minimum distribution for 2026, use your age as of your
birthday in 2026. For each subsequent year, use your age
as of your birthday in the subsequent year.
Note: Use this table in the year of the owner's death if
the owner died after the required beginning date and this
is the table that would have been used had they not died.
Reminder. In using the tables for lifetime distributions,
marital status is determined as of January 1 each year. Divorce or death after January 1 is generally disregarded
until the next year.
The change in beneficiary will take effect in the year after the year of your spouse’s death or year of your divorce.
No table. Don't use any of the tables if the owner died
before their required beginning date and either the 5-year
rule or the 10-year rule (discussed earlier) applies.
Miscellaneous Rules for Required
Minimum Distributions
Redetermination of initial life expectancies using
new tables. New life expectancy tables apply to distribution calendar years beginning on or after January 1, 2022.
If an IRA owner died before January 1, 2022, the applicable denominator that applies for a calendar year following
the calendar year of the owner’s death is equal to a single
life expectancy calculated as of the calendar year of the
owner’s death, reduced by 1 for each subsequent year,
and is reset using the new table.
In order to do this, find your life expectancy based on
your age in the year following the owner’s death on Table I
and reduce that number by 1 for each year since the year
of the owner’s death.
12
Chapter 1
The requirement to reset the initial life expectancy also
applies to an owner’s surviving spouse who died before
January 1, 2022.
Example. Your father died in 2021 at the age of 80 and
you were the designated beneficiary. You started taking
required minimum distributions from the inherited IRA in
2022 when you were age 55, using a life expectancy of
29.6 and reducing that number by 1 each year so that in
2026 (4 years later) the required minimum distribution
would be determined by dividing the account balance by
25.6 (29.6 – 4). However, under the new life expectancy
tables, the life expectancy for a 55-year-old is 31.6; therefore, you calculate your required minimum distribution for
2026 by dividing the account balance by 27.6 (31.6 – 4).
Installments allowed. The yearly required minimum distribution can be taken in a series of installments (monthly,
quarterly, etc.) as long as the total distributions for the year
are at least as much as the minimum required amount.
More than one IRA. If you are the owner of more than
one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you
can total these minimum amounts and take the total from
any one or more of the IRAs. The same rule applies if you
are a designated beneficiary of more than one IRA that
was owned by a single decedent.
More than minimum received. If, in any year, you receive more than the required minimum amount for that
year, you won't receive credit for the additional amount
when determining the minimum required amounts for future years. This doesn't mean that you don't reduce your
IRA account balance. It means that if you receive more
than your required minimum distribution in 1 year, you
can't treat the excess (the amount that is more than the required minimum distribution) as part of your required minimum distribution for any later year. However, any amount
distributed in the year you turn age 73 will be credited toward the amount that must be distributed by April 1 of the
following year.
Example. Justin became 73 on December 15, 2025.
Justin's IRA account balance on December 31, 2024, was
$38,400. He figured his required minimum distribution of
$1,450 for 2025 ($38,400 ÷ 26.5). By December 31, 2025,
he had actually received distributions totaling $3,600,
$2,150 more than was required. Justin can’t use that
$2,150 to reduce the amount he is required to withdraw for
2026. Justin's reduced IRA account balance on December 31, 2025, was $34,800. Justin figured his required
minimum distribution of $1,313 for 2026 ($34,800 ÷ 26.5
(the applicable denominator for age 73 per Table III)). During 2026, he must receive distributions of at least that
amount.
Multiple individual beneficiaries. If, as of September
30 of the year following the year in which the owner dies,
there is more than one beneficiary, the beneficiary with the
Traditional IRAs
Publication 590-B (2025)
shortest life expectancy will be the designated beneficiary
if both of the following apply.
disabled or chronically ill. There are two types of applicable multi-beneficiary trusts:
• All of the beneficiaries are individuals.
• The account or benefit hasn't been divided into sepa-
• A trust that is to be divided immediately upon the
Separate accounts. A single IRA can be split into
separate accounts or shares for each beneficiary. These
separate accounts or shares can be established at any
time, either before or after the owner's required beginning
date. Generally, these separate accounts or shares are
combined for purposes of determining the required minimum distribution. However, these separate accounts or
shares won't be combined for required minimum distribution purposes after the death of the IRA owner if the separate accounts or shares are established by the end of the
year following the year of the IRA owner's death.
The separate account rules can't be used by beneficiaries of a trust unless the trust is an applicable multi-beneficiary trust.
• A trust to which the separate account rules do not ap-
rate accounts or shares for each beneficiary.
Trust as beneficiary. A trust can't be a designated beneficiary even if it is a named beneficiary. However, the beneficiaries of a trust will be treated as having been designated beneficiaries for purposes of determining required
minimum distributions after the owner’s death (or, after the
death of the owner’s surviving spouse described in Death
of surviving spouse prior to date distributions begin, earlier) if all of the following are true.
1. The trust is a valid trust under state law, or would be
but for the fact that there is no corpus.
2. The trust is irrevocable or became, by its terms, irrevocable upon the owner's death.
3. The beneficiaries of the trust who are beneficiaries
with respect to the trust's interest in the owner's benefit are identifiable from the trust instrument.
4. The trustee of the trust provides the IRA custodian or
trustee with the documentation required by that custodian or trustee. The trustee of the trust should contact
the IRA custodian or trustee for details on the documentation required for a specific IRA.
Trust beneficiary is another trust. If the beneficiary
of the trust (which is the beneficiary of the IRA) is another
trust and both trusts meet the above requirements, the
beneficiaries of the other trust will be treated as having
been designated as beneficiaries for purposes of determining the applicable denominator.
Applicable multi-beneficiary trusts. An applicable
multi-beneficiary trust is a trust (1) which has more than
one beneficiary; (2) all of the beneficiaries of which are
treated as designated beneficiaries for purposes of determining the applicable denominator pursuant to section
401(a)(9); and (3) at least one of the beneficiaries of
which is an eligible designated beneficiary who is either
Publication 590-B (2025)
Chapter 1
death of the IRA owner into separate trusts for each
beneficiary, in which case the separate account rules
apply to each portion of the trust; or
ply and provides that no beneficiary (other than an eligible designated beneficiary who is disabled or chronically ill) has any right to the IRA owner’s interest in the
IRA until the death of all disabled or chronically ill eligible designated beneficiaries with respect to the trust.
Tip: You may want to contact a tax advisor to comply
with this complicated area of the tax law.
Annuity distributions from an insurance company.
Special rules apply if you receive distributions from your
traditional IRA as an annuity purchased from an insurance
company. See Treasury Regulations sections 1.401(a)
(9)-6 and 54.4974-1. These regulations can be found in
many libraries, and IRS offices, and online at IRS.gov.
Are Distributions Taxable?
In general, distributions from a traditional IRA are taxable
in the year you receive them.
Failed financial institutions. Distributions from a traditional IRA are taxable in the year you receive them even if
they are made without your consent by a state agency as
receiver of an insolvent savings institution. This means
you must include such distributions in your gross income
unless you roll them over.
Exceptions. Exceptions to distributions from traditional
IRAs being taxable in the year you receive them are:
• Rollovers (see chapter 1 of Pub. 590-A);
• Qualified charitable distributions, discussed later;
• Tax-free withdrawals of contributions (see chapter 1 of
Pub. 590-A); and
• The return of nondeductible contributions, discussed
later under Distributions Fully or Partly Taxable.
Caution: Although a conversion of a traditional IRA is
considered a rollover for Roth IRA purposes, it isn't an exception to the rule that distributions from a traditional IRA
are taxable in the year you receive them. Conversion distributions are includible in your gross income subject to
this rule and the special rules for conversions explained in
chapter 1 of Pub. 590-A.
Qualified charitable distributions (QCDs). A QCD is
generally a nontaxable distribution made directly by the
trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 701/2 when the
distribution is made. Also, you must have the same type of
acknowledgment of your contribution that you would need
Traditional IRAs
13
to claim a deduction for a charitable contribution. See
Substantiation Requirements in Pub. 526.
The maximum annual exclusion for QCDs is $108,000.
Any QCD in excess of the $108,000 exclusion limit is included in income as any other distribution. If you file a joint
return, your spouse can also have a QCD and exclude up
to $108,000. The amount of the QCD is limited to the
amount of the distribution that would otherwise be included in income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of
otherwise taxable income.
Caution: You can't claim a charitable contribution deduction for any QCD not included in your income.
One-time election for QCD to split-interest entity. You
can elect to make a one-time distribution of up to $54,000
from an individual retirement account to charities through
a split-interest entity. A split-interest entity (SIE) would be
a charitable remainder annuity trust, a charitable remainder unitrust, or a charitable gift annuity but only if funded
by qualified charitable distributions.
In the case of the charitable gift annuity, the annuity
must begin making fixed payments of 5% or greater not
later than 1 year from the date of funding.
Tip: A QCD will count towards your required minimum
distribution, discussed earlier.
Example. On December 23, 2025, Amy, age 75, directed the trustee of her IRA to make a distribution of $25,000
directly to a qualified section 501(c)(3) organization (a
charitable organization eligible to receive tax-deductible
contributions). The total value of Amy's IRA is $30,000
and consists of $20,000 of deductible contributions and
earnings and $10,000 of nondeductible contributions (basis). Because Amy is at least age 701/2 and the distribution is made directly by the trustee to a qualified organization, the part of the distribution that would otherwise be
includible in Amy's income ($20,000) is a QCD.
In this case, Amy has made a QCD of $20,000 (her deductible contributions and earnings). Because Amy made
a distribution of nondeductible contributions from her IRA,
she must file Form 8606 with her return. Amy reports the
total distribution ($25,000) on line 4a of Form 1040-SR.
She completes Form 8606 to determine the amount to enter on line 4b of Form 1040-SR and the remaining basis in
her IRA. Amy enters -0- on line 4b. This is Amy's only IRA
and she took no other distributions in 2025. She also
checks box 2 for QCD on line 4c to indicate a qualified
charitable distribution.
After the distribution, her basis in her IRA is $5,000. If
Amy itemizes deductions and files Schedule A (Form
1040) with Form 1040-SR, the $5,000 portion of the distribution attributable to the nondeductible contributions can
be deducted as a charitable contribution, subject to adjusted gross income (AGI) limits. She can't take the charitable contribution deduction for the $20,000 portion of the
distribution that wasn't included in her income.
Reporting your one-time election on Form 1040,
1040-SR, or 1040-NR. If you make the one-time election
to make a QCD to a split-interest entity (SIE), you must attach a statement to your tax return. Check box 3 on line 4c
and enter “SIE” in the entry space.
The attachment should include all of the following information.
1. That you have not made the election in a prior tax
year.
2. That the QCDs are otherwise deductible under section 408(d)(8)(F)(iii).
3. That no person holds an income interest in an SIE
other than the individual for whose benefit the account
is maintained, the individual's spouse, or both.
4. That the income interest in the SIE is nonassignable.
5. The total amount of QCD(s) you made to an SIE that
relate to your one-time election.
Offset of QCDs by amounts contributed after age
701/2. Beginning in tax years after December 31, 2019,
the amount of QCDs that you can exclude from income is
reduced by the excess of the aggregate amount of IRA
contributions you deducted for the taxable year and any
prior year that you were age 701/2 or older over the amount
of the IRA contributions that were used to reduce the excludable amount of QCDs in all earlier years. See the
Qualified Charitable Deduction (QCD) Adjustment Worksheet in Appendix D.
Example. Jim became age 701/2 in 2023 and deducted $5,000 for contributions he made in 2024 and 2025
Jim’s Illustrated 2025 QCD Adjustment Worksheet
Keep for Your Records
Enter the total amounts of contributions deducted in prior years that you were age 701/2 or older that did not reduce
1. the excludable amount of qualified charitable contributions in prior years.
1.
-0-
the year. If this is your first QCD worksheet, also include contributions you deducted in prior years during which you
2. were age 701/2 (or older) at the end of the year.
2.
10,000
3. Add the amounts on lines 1 and 2.
3.
10,000
4. Enter the total amounts of qualified charitable distributions made during the current year, not to exceed $108,000.
4.
6,000
5. Subtract line 3 from line 4. This is the amount of your excludable qualified charitable distribution for the current year.*
5.
($4,000)
Enter the total amounts contributed and deducted during the current year if you were age 701/2 (or older) at the end of
*If zero or less, you have no excludable qualified charitable distribution. If greater than zero, enter -0- on line 1 of your subsequent QCD worksheet. If less than zero,
enter the amount as a positive amount on line 1 of your subsequent QCD worksheet.
14
Chapter 1
Traditional IRAs
Publication 590-B (2025)
Jim’s Illustrated 2026 QCD Adjustment Worksheet
Keep for Your Records
Enter the total amounts of contributions deducted in prior years that you were age 701/2 or older that did not reduce
1. the excludable amount of qualified charitable contributions in prior years.
1.
4,000
the year. If this is your first QCD worksheet, also include contributions you deducted in prior years during which you
2. were age 701/2 (or older) at the end of the year.
2.
-0-
3. Add the amounts on lines 1 and 2.
3.
4,000
4. Enter the total amounts of qualified charitable distributions made during the current year, not to exceed $111,000.
4.
6,500
5. Subtract line 3 from line 4. This is the amount of your excludable qualified charitable distribution for the current year.*
5.
$2,500
Enter the total amounts contributed and deducted during the current year if you were age 701/2 (or older) at the end of
*If zero or less, you have no excludable qualified charitable distribution. If greater than zero, enter -0- on line 1 of your subsequent QCD worksheet. If less than zero,
enter the amount as a positive amount on line 1 of your subsequent QCD worksheet.
but makes no contribution for 2026. Jim makes no qualified charitable distributions for 2024 and makes qualified
charitable distributions of $6,000 for 2025 and $6,500 for
2026.
He determines he has no excludable qualified charitable distribution for 2025 as figured on his 2025 QCD
Worksheet. His 2025 qualified charitable distribution is reduced by the aggregate amount of $10,000 of the contributions he deducted in 2024 and 2025, which reduces his
excludable qualified charitable distribution to a negative
amount of $4,000.
Jim decides to make a qualified charitable distribution
of $6,500 for 2026. Jim completes his 2026 QCD worksheet by entering the amount of the remainder of the aggregate amount of the contributions he deducted in 2024
and 2025 ($4,000) on line 1. This amount is figured on his
2025 QCD worksheet and is entered on line 1 of his 2026
QCD worksheet. Jim figures his excludable qualified charitable distribution of $2,500 on his 2026 QCD worksheet
($6,500 – $4,000 = $2,500).
One-time qualified Health Savings Account (HSA)
funding distribution. You may be able to make a qualified HSA funding distribution from your traditional IRA or
Roth IRA to your HSA. You can't make this distribution
from an ongoing SEP IRA or SIMPLE IRA. For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer
contribution is made for the plan year ending with or within
your tax year in which the distribution would be made. The
distribution must be less than or equal to your maximum
annual HSA contribution.
This distribution must be made directly by the trustee of
the IRA to the trustee of the HSA. The distribution isn't included in your income, isn't deductible, and reduces the
amount that can be contributed to your HSA. You must
make the distribution by the end of the year; the special
rule allowing contributions to your HSA for the previous
year if made by your tax return filing deadline doesn't apply. The qualified HSA funding distribution is reported on
Form 8889 for the year in which the distribution is made.
One-time transfer. Generally, only one qualified HSA
funding distribution is allowed during your lifetime. If you
own two or more IRAs, and want to use amounts in multiple IRAs to make a qualified HSA funding distribution, you
must first make an IRA-to-IRA transfer of the amounts to
Publication 590-B (2025)
Chapter 1
be distributed into a single IRA, and then make the
one-time qualified HSA funding distribution from that IRA.
Testing period rules apply. If at any time during the
testing period you cease to meet all requirements to be an
eligible individual, the amount of the qualified HSA funding
distribution is included in your gross income. The qualified
HSA funding distribution is included in gross income in the
tax year you first fail to be an eligible individual. This
amount is subject to the 10% additional tax (unless the
failure is due to disability or death).
More information. See Pub. 969 for additional information about this distribution.
Ordinary income. Distributions from traditional IRAs that
you include in income are taxed as ordinary income.
No special treatment. In figuring your tax, you can't use
the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement
plans.
Tip: If you were affected by a qualified disaster, see
chapter 3.
Distributions Fully or Partly Taxable
Distributions from your traditional IRA may be fully or
partly taxable, depending on whether your IRA includes
any nondeductible contributions.
Fully taxable. If only deductible contributions were made
to your traditional IRA (or IRAs, if you have more than
one), you have no basis in your IRA. Because you have no
basis in your IRA, any distributions are fully taxable when
received. See Reporting and Withholding Requirements
for Taxable Amounts, later.
Partly taxable. If you made nondeductible contributions
or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. These
nondeductible contributions aren't taxed when they are
distributed to you. They are a return of your investment in
your IRA.
Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts
Traditional IRAs
15
(your cost basis) is tax free. If nondeductible contributions
have been made or after-tax amounts have been rolled
over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Until all of
your basis has been distributed, each distribution is partly
nontaxable and partly taxable.
tions to figure your deductible contributions to traditional IRAs to report on Schedule 1 (Form 1040),
line 20.
2. After you complete Worksheet 1-2 in chapter 1 of Pub.
590-A or the IRA Deduction Worksheet in the Form
1040 instructions, enter your nondeductible contributions to traditional IRAs on line 1 of Form 8606.
Form 8606. You must complete Form 8606, and attach it
to your return, if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Using the form, you will figure the nontaxable
distributions for 2025, and your total IRA basis for 2025
and earlier years. See the illustrated Forms 8606 in this
chapter.
3. Complete lines 2 through 5 of Form 8606.
Note: If you are required to file Form 8606, but you
aren't required to file an income tax return, you must still
file Form 8606. Complete Form 8606, sign it, and send it
to the IRS at the time and place you would otherwise file
an income tax return.
6. Enter the amount from line 8 of Worksheet 1-1 on
lines 13 and 17 of Form 8606.
Figuring the Nontaxable and Taxable
Amounts
If your traditional IRA includes nondeductible contributions
and you received a distribution from it in 2025, you must
use Form 8606 to figure how much of your 2025 IRA distribution is tax free.
Note: When figuring the nontaxable and taxable
amounts of distributions made prior to death in the year
the IRA account owner dies, the value of all traditional (including SEP and SIMPLE) IRAs should be figured as of
the date of death instead of December 31.
Contribution and distribution in the same year. If you
received a distribution in 2025 from a traditional IRA and
you also made contributions to a traditional IRA for 2025
that may not be fully deductible because of the income
limits, you can use Worksheet 1-1 to figure how much of
your 2025 IRA distribution is tax free and how much is taxable. Then, you can figure the amount of nondeductible
contributions to report on Form 8606. Follow the instructions under Reporting your nontaxable distribution on
Form 8606 next to figure your remaining basis after the
distribution.
Reporting your nontaxable distribution on Form
8606. To report your nontaxable distribution and to figure
the remaining basis in your traditional IRA after distributions, you must complete Worksheet 1-1 before completing Form 8606. Then, follow these steps to complete Form
8606.
4. If line 5 of Form 8606 is less than line 8 of Worksheet
1-1, complete lines 6 through 15c of Form 8606 and
stop here.
5. If line 5 of Form 8606 is equal to or greater than line 8
of Worksheet 1-1, follow instructions 6 and 7 next.
Don't complete lines 6 through 12 of Form 8606.
7. Complete line 14 of Form 8606.
8. Enter the amount from line 9 of Worksheet 1-1 (or, if
you entered an amount on line 11, the amount from
that line) on line 15a of Form 8606.
Example. Rose Green has made the following contributions to her traditional IRAs.
Year
2018
2019
2020
2021
2022
2023
2024
Totals
Deductible
2,000
2,000
2,000
1,000
1,000
1,000
700
$9,700
Nondeductible
-0-0-0-0-0-0300
$300
Rose needs to complete Worksheet 1-1 to determine if
her IRA deduction for 2025 will be reduced or eliminated.
In 2025, she makes a $2,000 contribution that may be
partly nondeductible. She also receives a distribution of
$5,000 for conversion to a Roth IRA. She completed the
conversion before December 31, 2025, and didn’t recharacterize any contributions. At the end of 2025, the fair
market values of her accounts, including earnings, total
$20,000. She didn't receive any tax-free distributions in
earlier years. The amount she includes in income for 2025
is figured on Worksheet 1-1.
The illustrated Form 8606 for Rose shows the information required when you need to use Worksheet 1-1 to figure your nontaxable distribution. Assume that the $500
entered on Form 8606, line 1, is the amount Rose figured
using instructions 1 and 2 given earlier under Reporting
your nontaxable distribution on Form 8606.
1. Use Worksheet 1-2 in chapter 1 of Pub. 590-A, or the
IRA Deduction Worksheet in the Form 1040 instruc-
16
Chapter 1
Traditional IRAs
Publication 590-B (2025)
Worksheet 1-1. Figuring the Taxable Part of Your IRA Distribution
Use only if you made contributions to a traditional IRA for 2025 that may not be fully deductible and have to figure the
taxable part of your 2025 distributions to determine your modified AGI. See Limit if Covered by Employer Plan in
chapter 1 of Pub. 590-A.
Form 8606 and the related instructions will be needed when using this worksheet.
Note. When used in this worksheet, the term “outstanding rollover” refers to an amount distributed from a traditional
IRA as part of a rollover that, as of December 31, 2025, hadn't yet been reinvested in another traditional IRA, but was still
eligible to be rolled over tax free.
1. Enter the basis in your traditional IRAs as of December 31, 2024 . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter the total of all contributions made to your traditional IRAs during 2025 and all
contributions made during 2026 that were for 2025, whether or not deductible. Don't
include rollover contributions properly rolled over into IRAs. Also, don't include certain
returned contributions described in the instructions for line 7 of Form 8606 . . . . . . . . . . . .
2.
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the value of all your traditional IRAs as of December 31, 2025 (include any
outstanding rollovers from traditional IRAs to other traditional IRAs). Subtract any
repayments of qualified disaster distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Enter the total distributions from traditional IRAs (including amounts converted to Roth
IRAs that will be shown on line 16 of Form 8606) received in 2025. Also, include
repayments of qualified disaster distributions, qualified charitable distributions (QCDs),
and a one-time distribution to fund a health savings account (HSA). (Don’t include
outstanding rollovers included on line 4 or any rollovers between traditional IRAs
completed by December 31, 2025. Also, don’t include certain returned contributions
described in the instructions for line 7 of Form 8606.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Add lines 4 and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Divide line 3 by line 6. Enter the result as a decimal (rounded to at least three places).
If the result is 1.000 or more, enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Nontaxable portion of the distribution.
Multiply line 5 by line 7. Enter the result here and on lines 13 and 17 of Form
8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9. Taxable portion of the distribution (before adjustment for conversions).
Subtract line 8 from line 5. Enter the result here, and if there are no amounts converted
to Roth IRAs, stop here and enter the result on line 15a of Form 8606 . . . . . . . . . . . . . . . .
9.
10. Enter the amount included on line 9 that is allocable to amounts converted to Roth IRAs
by December 31, 2025. (See Note at the end of this worksheet.) Enter here and on
line 18 of Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
11. Taxable portion of the distribution (after adjustments for conversions).
Subtract line 10 from line 9. Enter the result here and on line 15a of Form 8606 . . . . . . . .
11.
Note. If the amount on line 5 of this worksheet includes an amount converted to a Roth IRA by December 31, 2025, you must
determine the percentage of the distribution allocable to the conversion. To figure the percentage, divide the amount converted
(from line 16 of Form 8606) by the total distributions shown on line 5. To figure the amounts to include on line 10 of this worksheet
and on line 18 of Form 8606, multiply line 9 of the worksheet by the percentage you figured.
Publication 590-B (2025)
Chapter 1
Traditional IRAs
17
Worksheet 1-1. Figuring the Taxable Part of Your IRA Distribution—Illustrated
Use only if you made contributions to a traditional IRA for 2025 that may not be fully deductible and have to figure the
taxable part of your 2025 distributions to determine your modified AGI. See Limit if Covered by Employer Plan in
chapter 1 of Pub. 590-A.
Form 8606 and the related instructions will be needed when using this worksheet.
Note. When used in this worksheet, the term “outstanding rollover” refers to an amount distributed from a traditional
IRA as part of a rollover that, as of December 31, 2025 hadn't yet been reinvested in another traditional IRA, but was still
eligible to be rolled over tax free.
1. Enter the basis in your traditional IRAs as of December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . .
1.
300
2. Enter the total of all contributions made to your traditional IRAs during 2025 and all
contributions made during 2026 that were for 2025, whether or not deductible. Don't
include rollover contributions properly rolled over into IRAs. Also, don't include certain
returned contributions described in the instructions for line 7 of Form 8606 . . . . . . . . . . . . . . .
2.
2,000
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
2,300
4. Enter the value of all your traditional IRAs as of December 31, 2025 (include any
outstanding rollovers from traditional IRAs to other traditional IRAs). Subtract any
repayments of qualified disaster distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
20,000
5. Enter the total distributions from traditional IRAs (including amounts converted to Roth IRAs
that will be shown on line 16 of Form 8606) received in 2025. Also, include repayments of
qualified disaster distributions, qualified charitable distributions (QCDs), and a one-time
distribution to fund a health savings account (HSA). (Don’t include outstanding rollovers
included on line 4 or any rollovers between traditional IRAs completed by December 31,
2025. Also, don’t include certain returned contributions described in the instructions for
line 7 of Form 8606.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
5,000
6. Add lines 4 and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
25,000
7. Divide line 3 by line 6. Enter the result as a decimal (rounded to at least three places).
If the result is 1.000 or more, enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
0.092
8. Nontaxable portion of the distribution.
Multiply line 5 by line 7. Enter the result here and on lines 13 and 17 of Form 8606 . . . . . . . .
8.
460
9. Taxable portion of the distribution (before adjustment for conversions).
Subtract line 8 from line 5. Enter the result here, and if there are no amounts converted to
Roth IRAs, stop here and enter the result on line 15a of Form 8606 . . . . . . . . . . . . . . . . . . . . .
9.
4,540
10. Enter the amount included on line 9 that is allocable to amounts converted to Roth IRAs by
December 31, 2025. (See Note at the end of this worksheet.) Enter here and on line 18 of
Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
4,540
11. Taxable portion of the distribution (after adjustments for conversions).
Subtract line 10 from line 9. Enter the result here and on line 15a of Form 8606 . . . . . . . . . . . 11.
-0-
Note. If the amount on line 5 of this worksheet includes an amount converted to a Roth IRA by December 31, 2025, you must
determine the percentage of the distribution allocable to the conversion. To figure the percentage, divide the amount converted
(from line 16 of Form 8606) by the total distributions shown on line 5. To figure the amounts to include on line 10 of this worksheet
and on line 18 of Form 8606, multiply line 9 of the worksheet by the percentage you figured.
18
Chapter 1
Traditional IRAs
Publication 590-B (2025)
Form
8606
OMB No. 1545-0074
Nondeductible IRAs
2025
Attach to 2025 Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form8606 for instructions and the latest information.
Department of the Treasury
Internal Revenue Service
Attachment
Sequence No. 48
Your social security number
Name. If married, file a separate form for each spouse required to file 2025 Form 8606. See instructions.
Rose Green
Fill in Your Address
Only if You Are
Filing This Form by
Itself and Not With
Your Tax Return
001-00-0000
Home address (number and street, or P.O. box if mail is not delivered to your home)
Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete the spaces below. See instructions.
Foreign country name
Foreign province/state/county
Foreign postal code
Note: Except where stated otherwise, “traditional IRA” includes traditional SEP IRAs and traditional SIMPLE IRAs. “Roth IRA” includes
Roth SEP IRAs and Roth SIMPLE IRAs.
Part I
Nondeductible Contributions to Traditional IRAs and Distributions From Traditional IRAs
Complete this part only if one or more of the following apply.
• You made nondeductible contributions to a traditional IRA for 2025. Nondeductible contributions to a traditional IRA do
not include employer contributions made to a SEP IRA pursuant to a SEP arrangement or to a SIMPLE IRA pursuant to
a SIMPLE IRA plan.
• You took distributions from a traditional IRA in 2025 and you made nondeductible contributions to a traditional IRA in
2025 or an earlier year. For this purpose, “distributions” does not include rollovers (but does include certain 2025
retirement plan distribution repayments treated as rollovers (see instructions)). Also, it does not include qualified
charitable distributions, one-time distributions to fund an HSA, conversions, recharacterizations, or returns of certain
contributions.
• You converted part, but not all, of your traditional IRAs to Roth IRAs in 2025 and you made nondeductible contributions
to a traditional IRA in 2025 or an earlier year.
1
2
3
Enter your nondeductible contributions to traditional IRAs for 2025, including those made for 2025
from January 1, 2026, through April 15, 2026. See instructions . . . . . . . . . . . . .
Enter your total basis in traditional IRAs. See instructions . . . . . . . . . . . . . . .
Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In 2025, did you take a distribution
from a traditional IRA, or make a
Roth IRA conversion?
4
5
6
7
8
9
10
11
12
13
14
No
Enter the amount from line 3 on line 14.
Do not complete the rest of Part I.
Yes
Go to line 4.
Enter those contributions included on line 1 that were made from January 1, 2026, through April 15,
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the value of all your traditional IRAs as of December 31, 2025, plus any outstanding rollovers.
Subtract certain 2025 retirement plan distribution repayments treated as rollovers, if any. See
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter your distributions from traditional IRAs in 2025. Do not include rollovers (but do include certain
2025 retirement plan distribution repayments treated as rollovers (see instructions)). Also, do not include
qualified charitable distributions; a one-time distribution to fund an HSA; conversions to a Roth IRA;
certain returned contributions; or recharacterizations of traditional IRA contributions. See instructions .
Enter the net amount you converted from traditional IRAs to Roth IRAs in 2025. Also, enter this amount
on line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 6, 7, and 8 . . . . . . . . . . . . . . . . . . .
9
Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3
×
places. If the result is 1.000 or more, enter “1.000” . . . . . . . . .
10
.
Multiply line 8 by line 10. This is the nontaxable portion of the amount you
converted to Roth IRAs. Also, enter this amount on line 17 . . . . . . .
11
Multiply line 7 by line 10. This is the nontaxable portion of your distributions
that you did not convert to a Roth IRA . . . . . . . . . . . . .
12
Add lines 11 and 12. This is the nontaxable portion of all your distributions . . . . . . . . .
Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2025 and earlier years .
For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 63966F
1
2
3
500
300
800
4
5
-0800
6
7
8
13
14
460*
Form 8606 (2025) Created 5/7/25
* From Worksheet 1-1 in Publication 590-B
Publication 590-B (2025)
Chapter 1
Traditional IRAs
19
Page 2
Form 8606 (2025)
Part I
Nondeductible Contributions to Traditional IRAs and Distributions From Traditional IRAs (continued)
15a Subtract line 12 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . .
15a
340
b Enter the amount on line 15a attributable to qualified disaster distributions, if any, from 2025 Form(s)
8915-F. See instructions. Also, enter this amount on 2025 Form(s) 8915-F, line 18, as applicable. See
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
Taxable amount. Subtract line 15b from line 15a. Reduce that amount by certain 2025 retirement
plan distribution repayments (other than those reported on Form 8915-F) that are treated as rollovers.
See instructions. If more than zero, also include this amount on 2025 Form 1040, 1040-SR, or
1040-NR, line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15b
15c
-0-
16
5,000
17
460
18
4,540*
Note: You may be subject to an additional 10% tax on the amount on line 15c if you were under age
59½ at the time of the distribution. See instructions.
Part II
2025 Conversions From Traditional IRAs to Roth IRAs
Complete this part if you converted part or all of your traditional IRAs to a Roth IRA in 2025.
16
17
18
If you completed Part I, enter the amount from line 8. Otherwise, enter the net amount you converted
from traditional IRAs to Roth IRAs in 2025 . . . . . . . . . . . . . . . . . . . .
If you completed Part I, enter the amount from line 11. Otherwise, enter your basis in the amount on
line 16. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable amount. Subtract line 17 from line 16. If more than zero, also include this amount on 2025
Form 1040, 1040-SR, or 1040-NR, line 4b . . . . . . . . . . . . . . . . . . . .
Part III
Distributions From Roth IRAs
Complete this part only if you took a distribution from a Roth IRA in 2025. For this purpose, a distribution does not
include a rollover (but does include certain 2025 retirement plan distribution repayments treated as rollovers (see
instructions)). Also, it does not include a qualified charitable distribution, one-time distribution to fund an HSA,
recharacterization, or return of certain contributions. See instructions.
19
Enter your total nonqualified distributions from Roth IRAs in 2025, including any qualified first-time
homebuyer distributions, and any 2025 retirement plan distributions whose repayments are treated as
rollovers. See instructions . . . . . . . . . . . . . . . . . . . . . . . . .
20
Qualified first-time homebuyer expenses (see instructions). Do not enter more than $10,000 reduced
by the total of all your prior qualified first-time homebuyer distributions . . . . . . . . . .
21
Subtract line 20 from line 19. If zero or less, enter -0- . . . . . . . . . . . . . . . .
22
Enter your basis in Roth IRA contributions. See instructions. If line 21 is zero, stop here . . . . .
23
Subtract line 22 from line 21. If zero or less, enter -0- and skip lines 24 and 25. If more than zero, you
may be subject to an additional tax. See instructions . . . . . . . . . . . . . . . .
24
Enter your basis in conversions from traditional IRAs and rollovers from qualified retirement plans to a
Roth IRA. See instructions . . . . . . . . . . . . . . . . . . . . . . . . .
25a Subtract line 24 from line 23. If zero or less, enter -0- and skip lines 25b and 25c . . . . . . .
b Enter the amount on line 25a attributable to qualified disaster distributions, if any, from 2025 Form(s)
8915-F. See instructions. Also, enter this amount on 2025 Form(s) 8915-F, line 19, as applicable. See
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
Taxable amount. Subtract line 25b from line 25a. Reduce that amount by certain 2025 retirement
plan distribution repayments (other than those reported on Form 8915-F) that are treated as rollovers.
See instructions. If more than zero, also include this amount on 2025 Form 1040, 1040-SR, or
1040-NR, line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sign Here Only
if You Are Filing
This Form by Itself
and Not With Your
Tax Return
Paid
Preparer
Use Only
20
21
22
23
24
25a
25b
25c
Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my knowledge and
belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any
knowledge.
Your signature
Print/Type preparer’s name
Date
Preparer’s signature
Date
Check
if PTIN
self-employed
Firm’s name
Firm’s EIN
Firm’s address
Phone no.
Form 8606 (2025)
* From Worksheet 1-1 in Publication 590-B
20
19
Chapter 1
Traditional IRAs
Publication 590-B (2025)
Other Special IRA Distribution
Situations
Two other special IRA distribution situations are discussed
next.
Distribution of an annuity contract from your IRA account. You can tell the trustee or custodian of your traditional IRA account to use the amount in the account to buy
an annuity contract for you. You aren't taxed when you receive the annuity contract (unless the annuity contract is
being converted to an annuity held by a Roth IRA). You
are taxed when you start receiving payments under that
annuity contract.
Tax treatment. If only deductible contributions were
made to your traditional IRA since it was opened (this includes all your traditional IRAs, if you have more than
one), the annuity payments are fully taxable.
If any of your traditional IRAs include both deductible
and nondeductible contributions, the annuity payments
are taxed as explained earlier under Distributions Fully or
Partly Taxable.
Cashing in retirement bonds. When you cash in retirement bonds, you are taxed on the entire amount you receive. If you reach age 701/2 and you have not yet cashed
in your retirement bonds, you should include the entire
value of the bonds in your income in the year in which you
turn 701/2. The value of the bonds is the amount you would
have received if you had cashed them in at the end of that
year. When you later cash in the bonds, you won't be
taxed again.
Reporting and Withholding
Requirements for Taxable Amounts
Caution: If code 1, 5, or 8 appears on your Form
1099-R, you are probably subject to an additional tax. If
code 1 appears, see Early Distributions, later. If code 5
appears, see Prohibited Transactions, later. If code 8 appears, see Excess Contributions in chapter 1 of Pub.
590-A.
Letter codes. Some of the letter codes are explained
below. All of the codes are explained in the instructions for
recipients on Form 1099-R.
B—Designated Roth account distribution.
G—Direct rollover of a distribution to a qualified plan, a
section 403(b) plan, a governmental section 457(b)
plan, or an IRA.
H—Direct rollover of a designated Roth account distribution to a Roth IRA or Roth SIMPLE IRA.
J—Early distribution from a Roth IRA or Roth SIMPLE
IRA, no known exception (in most cases, under age
59½).
N—Recharacterized IRA contribution made for 2025
and recharacterized in 2025.
P—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2024 or a previous
year.
Q—Qualified distribution from a Roth IRA or Roth
SIMPLE IRA.
R—Recharacterized IRA contribution made for 2024
and recharacterized in 2025.
S—Early distribution from a SIMPLE IRA in the first
2 years, no known exception (under age 59½).
T—Roth IRA or Roth SIMPLE IRA distribution, exception applies.
If you receive a distribution from your traditional IRA, you
will receive Form 1099-R, or a similar statement. IRA distributions are shown in boxes 1 and 2a of Form 1099-R. A
number or letter code in box 7 tells you what type of distribution you received from your IRA.
Y—Qualified charitable distribution (QCD) claimed by
taxpayer under section 408(d)(8).
If the distribution shown on Form 1099-R is from your
IRA, SEP IRA, or SIMPLE IRA, the small box in box 7 (labeled IRA/SEP/SIMPLE) should be marked with an “X.”
Number codes. Some of the number codes are explained below. All of the codes are explained in the instructions for recipients on Form 1099-R.
Caution: If code J, P, or S appears on your Form
1099-R, you are probably subject to an additional tax. If
code J appears, see Early Distributions, later. If code P
appears, see Excess Contributions in chapter 1 of Pub.
590-A. If code S appears, see Distributions (Withdrawals)
in chapter 3 of Pub. 560.
1—Early distribution, no known exception (in most cases, under age 59½).
2—Early distribution, exception applies (under age
59½).
3—Disability.
4—Death.
5—Prohibited transaction.
7—Normal distribution.
8—Excess contributions plus earnings/
excess deferrals (and/or earnings)
taxable in 2025.
Publication 590-B (2025)
Chapter 1
Withholding. Federal income tax is withheld from distributions from traditional IRAs unless you choose not to
have tax withheld.
If you are receiving periodic payments (payments made
in installments at regular intervals over a period of more
than 1 year) use Form W-4P to have tax withheld from
your IRA. The amount of tax withheld from an annuity or a
similar periodic payment is based on your marital status
and any adjustments you claim on your Form W-4P.
Complete Form W-4R to have taxes withheld from your
nonperiodic payments or eligible rollover distribution from
Traditional IRAs
21
your IRA. Generally, tax will be withheld at a 10% rate on
nonperiodic payments.
other costs, including loss of IRA status, that apply if you
don't avoid those acts.
IRA distributions delivered outside the United
States. In general, if you are a U.S. citizen or resident
alien and your home address is outside the United States
or its territories, you can't choose exemption from withholding on distributions from your traditional IRA.
To choose exemption from withholding, you must certify
to the payer under penalties of perjury that you aren't a
U.S. citizen, a resident alien of the United States, or a
tax-avoidance expatriate.
Even if this election is made, the payer must withhold
tax at the rates prescribed for nonresident aliens.
Prohibited Transactions
More information. For more information on withholding on pensions and annuities, see Pensions and Annuities in chapter 1 of Pub. 505. For more information on
withholding on nonresident aliens and foreign entities, see
Pensions, Annuities, and Alimony under Withholding on
Specific Income in Pub. 515.
Reporting taxable distributions on your return. Report fully taxable distributions, including early distributions,
on Form 1040, 1040-SR, or 1040-NR, line 4b (no entry is
required on line 4a). If only part of the distribution is taxable, enter the total amount on Form 1040, 1040-SR, or
1040-NR, line 4a, and enter the taxable part on Form
1040, 1040-SR, or 1040-NR, line 4b.
Estate tax. Generally, the value of an annuity or other
payment receivable by any beneficiary of a decedent's traditional IRA that represents the part of the purchase price
contributed by the decedent (or by their former employer(s)) must be included in the decedent's gross estate. For more information, see the instructions for Schedule I (Form 706).
What Acts Result in Penalties
or Additional Taxes?
The tax advantages of using traditional IRAs for retirement
savings can be offset by additional taxes and penalties if
you don't follow the rules. There are additions to the regular tax for using your IRA funds in prohibited transactions.
There are also additional taxes for the following activities.
• Investing in collectibles.
• Having unrelated business income.
• Taking early distributions.
• Allowing excess amounts to accumulate (failing to
take required distributions).
• Making excess contributions.
There are penalties for overstating the amount of nondeductible contributions and for failure to file Form 8606, if
required.
This chapter discusses those acts (relating to distributions) that you should avoid and the additional taxes and
22
Chapter 1
Generally, a prohibited transaction is any improper use of
your IRA account or annuity by you, your beneficiary, or
any disqualified person.
Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant,
and any spouse of a lineal descendant).
The following are some examples of prohibited transactions with a traditional IRA.
• Borrowing money from it.
• Selling property to it.
• Using it as security for a loan.
• Buying property for personal use (present or future)
with IRA funds.
Caution: If your IRA invested in nonpublicly traded assets or assets that you directly control, the risk of engaging in a prohibited transaction in connection with your IRA
may be increased.
Fiduciary. For these purposes, a fiduciary includes anyone who does any of the following.
• Exercises any discretionary authority or discretionary
control in managing your IRA or exercises any authority or control in managing or disposing of its assets.
• Provides investment advice for a fee or other compensation, or has any authority or responsibility to do so.
• Has any discretionary authority or discretionary responsibility in administering your IRA.
Effect on an IRA account. Generally, if you or your beneficiary engages in a prohibited transaction in connection
with your IRA account at any time during the year, the account stops being an IRA as of the first day of that year.
However, if you own more than one IRA, each IRA is
treated as a separate account, and loss of IRA status only
affects the IRA that participated in the prohibited transaction.
Effect on you or your beneficiary. If your account stops
being an IRA because you or your beneficiary engaged in
a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the
first day of the year. If the total of those values is more
than your basis in the IRA, you will have a taxable gain
that is includible in your income. For information on figuring your gain and reporting it in income, see Are Distributions Taxable, earlier. The distribution may be subject to
additional taxes.
Borrowing on an annuity contract. If you borrow
money against your IRA annuity contract, you must include in your gross income the fair market value of the annuity contract as of the first day of your tax year. You may
Traditional IRAs
Publication 590-B (2025)
have to pay the 10% additional tax on early distributions,
discussed later.
• Your receipt of services at reduced or no cost from the
Pledging an account as security. If you use a part of
your IRA account as security for a loan, that part is treated
as a distribution and is included in your gross income. You
may have to pay the 10% additional tax on early distributions, discussed later.
Payments of cash, property, or other consideration.
Even if an IRA custodian makes payments to you or your
family, there is no prohibited transaction if all three of the
following requirements are met.
Trust account set up by an employer or an employee
association. Your account or annuity doesn't lose its IRA
treatment if your employer or the employee association
with whom you have your IRA engages in a prohibited
transaction.
2. The IRA is established solely to benefit you, your
spouse, and your or your spouse's beneficiaries.
Owner participation. If you participate in the prohibited transaction with your employer or the association, your
IRA is no longer treated as an IRA.
Taxes on prohibited transactions. If someone other
than the owner or beneficiary of an IRA engages in a prohibited transaction, that person may be liable for certain
taxes. In general, there is a 15% tax on the amount of the
prohibited transaction and a 100% additional tax if the
transaction isn't corrected.
Loss of IRA status. If the IRA ceases to be an IRA
because of a prohibited transaction by you or your beneficiary, neither you nor your beneficiary is liable for the taxes
described above. However, you or your beneficiary may
have to pay other taxes, as discussed under Effect on you
or your beneficiary, earlier.
bank where your IRA is established or maintained.
1. The payments are for establishing an IRA or for making additional contributions to it.
3. During the year, the total fair market value of the payments you receive isn't more than:
a. $10 for IRA deposits of less than $5,000, or
b. $20 for IRA deposits of $5,000 or more.
If the consideration is group-term life insurance, requirements (1) and (3) don't apply if no more than $5,000 of the
face value of the insurance is based on a dollar-for-dollar
basis on the assets in your IRA.
Services received at reduced or no cost. Even if an
IRA custodian provides services at reduced or no cost,
there is no prohibited transaction if all of the following requirements are met.
• The IRA qualifying you to receive the services is es-
tablished and maintained for the benefit of you, your
spouse, and your or your spouse's beneficiaries.
• The bank itself can legally offer the services.
• The services are provided in the ordinary course of
Exempt Transactions
The Department of Labor has authority to grant administrative exemptions from the prohibited transaction provisions of ERISA and the Code for a class of transactions or
for individual transactions. In order to grant an administrative exemption, the Department must make the following
three determinations.
1. The exemption must be administratively feasible.
2. In the interest of the plan and its participants and beneficiaries.
3. Protective of the rights of plan participants and beneficiaries.
For additional information on prohibited transaction exemptions, see the Exemptions page on the Department of
Labor website. For information on filing and the processing of prohibited transaction exemption applications, see
Procedures Governing the Filing and Processing of
Prohibited Transaction Exemption Applications.
Transactions Not Prohibited
The following two types of transactions aren't prohibited
transactions if they meet the requirements that follow.
• Payments of cash, property, or other consideration by
business by the bank (or a bank affiliate) to customers
who qualify for but don't maintain an IRA (or a Keogh
plan).
• The determination, for an IRA, of who qualifies for
these services is based on an IRA (or a Keogh plan)
deposit balance equal to the lowest qualifying balance
for any other type of account.
• The rate of return on an IRA investment that qualifies
isn't less than the return on an identical investment
that could have been made at the same time at the
same branch of the bank by a customer who isn't eligible for (or doesn't receive) these services.
Investment in Collectibles
If your IRA invests in collectibles, the amount invested is
considered distributed to you in the year invested. You
may have to pay the 10% additional tax on early distributions, discussed later.
Any amounts that were considered to be distributed
when the investment in the collectible was made, and
which were included in your income at that time, aren't included in your income when the collectible is actually distributed from your IRA.
the IRA custodian of your IRA to you (or members of
your family).
Publication 590-B (2025)
Chapter 1
Traditional IRAs
23
Age 591/2 Rule
Collectibles. These include:
• Artworks,
• Rugs,
• Antiques,
• Metals,
• Gems,
• Stamps,
• Coins,
• Alcoholic beverages, and
• Certain other tangible personal property.
Generally, if you are under age 591/2, you must pay a 10%
additional tax on the distribution of any assets (money or
other property) from your traditional IRA. Distributions before you are age 591/2 are called “early distributions.”
The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount.
A number of exceptions to this rule are discussed later
under Exceptions. Also see Contributions Returned Before Due Date of Return in chapter 1 of Pub. 590-A.
Exception. Your IRA can invest in one, one-half,
one-quarter, or one-tenth ounce U.S. gold coins, or
one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion.
Caution: The coins must be in the possession of the
custodian or trustee of the IRA. If the owner or the beneficiary of the IRA takes possession of the coins, the coins
will be treated as distributed.
Unrelated Business Income
An IRA is subject to tax on unrelated business income if it
carries on an unrelated trade or business. An unrelated
trade or business means any trade or business regularly
carried on by the IRA or by a partnership of which it is a
member, and not substantially related to the IRA’s exempt
purpose or function. If the IRA has $1,000 or more of unrelated trade or business gross income, the IRA must file a
Form 990-T, Exempt Organization Business Income Tax
Return. An IRA trustee is permitted to file Form 990-T on
behalf of the IRA. In the case of an IRA that operates on a
calendar year, the Form 990-T must be filed by April 15
following the close of the calendar year. In the case of an
IRA that operates on a fiscal year, the Form 990-T must be
filed by the 15th day of the 4th month following the close
of the fiscal year. See Pub. 598 for more information.
Early Distributions
You must include early distributions of taxable amounts
from your traditional IRA in your gross income. Early distributions are also subject to a 10% additional tax, as discussed later.
After age 591/2 and before age 73. After you reach age
591/2, you can receive distributions without having to pay
the 10% additional tax. Even though you can receive distributions after you reach age 591/2, distributions aren't required until you reach age 73. See When Must You Withdraw Assets? (Required Minimum Distributions), earlier.
Exceptions
There are several exceptions to the age 591/2 rule. Even if
you receive a distribution before you are age 591/2, you
may not have to pay the 10% additional tax if you are in
one of the following situations.
• You have unreimbursed medical expenses that are
more than 7.5% of your AGI.
• The distribution is for the cost of your medical insurance due to a period of unemployment.
• You are totally and permanently disabled.
• You have been certified as having a terminal illness.
• You are the beneficiary of a deceased IRA owner.
• You are receiving distributions in the form of a series
of substantially equal periodic payments.
• The distribution is for your qualified higher education
expenses.
• You use the distributions to buy, build, or rebuild a first
home.
• The distribution is due to an IRS levy of the IRA.
• The distribution is a qualified reservist distribution.
• The distribution is a qualified birth or adoption distribution.
• The distribution is a qualified disaster recovery distribution.
Early distributions defined. Early distributions are generally amounts distributed from your traditional IRA account or annuity before you are age 591/2, or amounts you
receive when you cash in retirement bonds before you are
age 591/2.
• The distribution is a corrective distribution.
• The distribution is to a domestic abuse victim.
• The distribution is for certain emergency personal ex-
Tip: If you were affected by a qualified disaster, see
chapter 3.
Most of these exceptions are explained below.
penses.
Note: Distributions that are timely and properly rolled
over, as discussed in chapter 1 of Pub. 590-A, aren't
subject to either regular income tax or the 10% additional
24
Chapter 1
Traditional IRAs
Publication 590-B (2025)
tax. Certain withdrawals of excess contributions after the
due date of your return are also tax free and therefore not
subject to the 10% additional tax. (See Excess Contributions Withdrawn After Due Date of Return in chapter 1 of
Pub. 590-A.) This also applies to transfers incident to divorce, as discussed under Can You Move Retirement Plan
Assets? in chapter 1 of Pub. 590-A.
eficiary or to your estate without either having to pay the
10% additional tax.
However, if you inherit a traditional IRA from your deceased spouse and elect to treat it as your own (as discussed under What if You Inherit an IRA, earlier), any distribution you later receive before you reach age 591/2 may
be subject to the 10% additional tax.
Receivership distributions. Early distributions (with
or without your consent) from savings institutions placed
in receivership are subject to this tax unless one of the
above exceptions applies. This is true even if the distribution is from a receiver that is a state agency.
Terminally ill individual distributions. You may be able
to take a distribution from an IRA before reaching age
591/2 and not have to pay the 10% additional tax on early
distributions if you receive the distribution on or after the
date you have received a certification by a physician that
you are terminally ill.
Unreimbursed medical expenses. Even if you are under age 591/2, there are certain distribution amounts on
which you don’t have to pay the 10% additional tax.
If you have unreimbursed medical expenses (that
would qualify for a medical deduction) in excess of 7.5%
of your adjusted gross income, defined next, you don’t
have to pay the 10% additional tax on distributions from
your IRA up to the amount by which those qualifying medical expenses exceed 7.5% of your adjusted gross income.
Caution: You can only take into account unreimbursed
medical expenses that you would be able to include in figuring a deduction for medical expenses on Schedule A
(Form 1040). You don't have to itemize your deductions to
take advantage of this exception to the 10% additional tax.
Adjusted gross income (AGI). This is the amount on
Form 1040, 1040-SR, or 1040-NR, line 11a.
Medical insurance. Even if you are under age 591/2, you
may not have to pay the 10% additional tax on distributions during the year that aren't more than the amount you
paid during the year for medical insurance for yourself,
your spouse, and your dependents. You won't have to pay
the tax on these amounts if all of the following conditions
apply.
• You lost your job.
• You received unemployment compensation paid un-
der any federal or state law for 12 consecutive weeks
because you lost your job.
• You receive the distributions during either the year you
received the unemployment compensation or the following year.
• You receive the distributions no later than 60 days after you have been reemployed.
Disabled. If you become disabled before you reach age
591/2, any distributions from your traditional IRA because
of your disability aren't subject to the 10% additional tax.
You are considered disabled if you can furnish proof
that you can't do any substantial gainful activity because
of your physical or mental condition. A physician must determine that your condition can be expected to result in
death or to be of long, continued, and indefinite duration.
Beneficiary. If you die before reaching age 591/2, the assets in your traditional IRA can be distributed to your benPublication 590-B (2025)
Chapter 1
Terminally ill. You are considered terminally ill if you
are certified by a physician as having an illness or physical
condition which can reasonably be expected to result in
death in 84 months or less after the date of the certification.
Certification of terminal illness. A certification of terminal illness must include the following:
• A statement that the individual’s illness or physical
condition can be reasonably expected to result in
death in 84 months or less after the date of certification.
• A narrative description of the evidence that was used
to support the statement of illness or physical condition.
• It must include the name and contact information of
the physician making the statement.
• The statement must include the date the physician examined the individual or reviewed the evidence provided by the individual, and the date that the physician
signed the certification.
• The statement must include the signature of the physi-
cian making the statement, and an attestation from the
physician that, by signing the form, the physician confirms that the physician composed the narrative description based on the physician’s examination of the
individual or the physician’s review of the evidence
provided by the individual.
However, it is not sufficient evidence for an IRA owner
who is a physician to certify the physician’s own terminal
illness.
Certain corrective distributions not subject to 10%
early distribution tax. Beginning with distributions made
on December 29, 2022, and after, the 10% additional tax
on early distributions will not apply to a corrective IRA distribution, which consists of an excess contribution (a contribution greater than the IRA contribution limit) and any
earnings allocable to the excess contribution, as long as
the corrective distribution is made on or before the due
date (including extensions) of the income tax return.
Substantially equal periodic payments. You can receive distributions from your traditional IRA before age
59½ if they are part of a series of substantially equal
Traditional IRAs
25
payments over your life (or your life expectancy), or over
the lives (or the joint life expectancies) of you and your
beneficiary, without having to pay the 10% additional tax.
The IRS has provided three general methods of computing the annual distribution amounts for meeting the requirements for a series of substantially equal periodic payments: Notice 2022-6 explains the three methods and
identifies tables to be used for 2023 and after. (See Notice
2022-6 at IRS.gov/irb/2022-05_IRB#NOT-2022-06).
The three methods are generally referred to as the required minimum distribution method (RMD method), the
fixed amortization method, and the fixed annuitization
method. The latter two methods may require professional
assistance.
Caution: The RMD method, when used for this purpose, results in the exact amount required to be distributed each year, not the minimum amount.
Tip: Distributions received as periodic payments on or
after December 29, 2022, will not fail to be treated as substantially equal merely because they are received as an
annuity.
Note: For a series of substantially equal periodic payments established in 2022, you may apply the guidance
either
in
Notice
2022-6
at
IRS.gov/irb/
2022-05_IRB#NOT-2022-06, or in Revenue Ruling
2002-62 which is on page 710 of Internal Revenue Bulletin
2002-42 at https://www.irs.gov/pub/irs-irbs/irb02-42.pdf.
Recapture tax for changes in distribution method
under equal payment exception. You may have to pay
a recapture tax if you modify (for reasons other than your
death or disability) the annual amount distributed to be different from the annual amount determined under the distribution method that you initially established under the substantially equal periodic payment exception, and if the
modification occurs before the date limitation explained in
Modification date below.
The recapture tax is imposed in the tax year in which
the modification occurs. The amount of tax is the amount
of the 10% additional tax that would have been imposed in
prior years had the exception not applied in those prior
years, plus interest for the deferral periods.
Modification date. The recapture tax applies if you
modify the series of payments (other than because of
death or disability) before the later of these two dates:
1. The 5th anniversary of the date of the first distribution
of the series; or
2. The date you reach age 59½.
However, the following two situations are not treated as a
modification of the series for purposes of the recapture
tax: (a) if your account is completely depleted of all assets; or (b) if you make a one-time change to the RMD
method from one of the other methods.
In the event of a modification that triggers the recapture
tax, the tax does not apply to any amounts distributed after you reach age 59½.
26
Chapter 1
Report the recapture tax (including the interest on the
deferral periods) on line 4 of Form 5329. Attach an explanation to the form. Don't write the explanation next to the
line or enter any amount for the recapture on line 1 or 3 of
the form.
One-time switch. If you are receiving a series of substantially equal periodic payments, you can make a
one-time switch to the required minimum distribution
method at any time without incurring the recapture tax.
Once a change is made, you must follow the required minimum distribution method in all subsequent years.
Transfers and rollovers of assets. Certain transfers
and rollovers of assets from qualified plans or annuity contracts using the substantially equal periodic payment
method are not considered a modification of the distribution method if certain requirements are met.
Transfers of assets of certain qualified plans.
this purpose, a qualified retirement plan is:
For
• A qualified employee plan (including a qualified cash
or deferred arrangement (CODA) under Internal Revenue Code section 401(k)),
• A qualified employee annuity plan, or
• A tax-sheltered annuity plan (403(b) plan).
Transferor and transferee plans. A qualified plan
distributing its assets using the substantially equal periodic payment method can roll over or transfer some or all
its assets to another qualified plan. In this situation the
plan transferring the assets is the transferor and the plan
receiving the assets is the transferee.
When a transfer or rollover of assets is not considered a modification of the substantially equal payment method. If a qualified plan is distributing its assets
using the substantially equal periodic payment method
transfers or rolls over some or all its assets to another
qualified plan, the distributions from the transferee plan (or
a combination of the transferee and transferor plan (if all
its assets were not transferred)) is not considered a modification of the substantially equal periodic payment
method if the following requirements are met:
• The transferor plan distributed or is distributing its assets using the substantially equal periodic payment
method,
• Distributions from the transferee and transferor plan (if
applicable) would, in combination, continue to satisfy
the requirements of the substantially equal periodic
payment method, and
• The distributions from a combination of the transferee
and transferor plan (if applicable) continue to satisfy
the requirements of the substantially equal periodic
payment method as if they had been made only from
the transferor plan.
Higher education expenses. Even if you are under age
591/2, if you paid expenses for higher education during the
year, part (or all) of any distribution may not be subject to
the 10% additional tax. The part not subject to the tax is
Traditional IRAs
Publication 590-B (2025)
generally the amount that isn't more than the qualified
higher education expenses (defined next) for the year for
education furnished at an eligible educational institution
(defined below). The education must be for you, your
spouse, or the children or grandchildren of you or your
spouse.
When determining the amount of the distribution that
isn't subject to the 10% additional tax, include qualified
higher education expenses paid with any of the following
funds.
• Payment for services, such as wages.
• A loan.
• A gift.
• An inheritance given to either the student or the individual making the withdrawal.
• A withdrawal from personal savings (including savings
from a qualified tuition program).
• Fees for a nationally standardized norm-referenced
achievement test, an advanced placement examination, or any examinations related to college or university admission.
• Fees for dual enrollment in an institution of higher education.
• Educational therapies for students with disabilities
provided by a licensed or accredited practitioner or
provider, including occupational, behavioral, physical,
and speech-language therapies.
Requirements for tutors. Tutors or teachers tutoring
or providing educational classes outside of the home must
not be related to the student and meet the following requirements.
• They must be licensed as a teacher in any state, or
• They must have taught at an eligible educational institution, or
Don't include expenses paid with any of the following
funds.
• They must be a subject matter expert in the relevant
• Tax-free distributions from a Coverdell education sav-
Eligible educational institution. This is any college,
university, vocational school, or other postsecondary educational institution eligible to participate in the student aid
programs administered by the U.S. Department of Education. It includes virtually all accredited, public, nonprofit,
and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be
able to tell you if it is an eligible educational institution.
ings account.
• Tax-free part of scholarships and fellowships.
• Pell grants.
• Employer-provided educational assistance.
• Veterans' educational assistance.
• Any other tax-free payment (other than a gift or inheritance) received as educational assistance.
Qualified higher education expenses. Qualified education expenses, eligible for the exception to the 10% additional tax for early distributions from IRAs, are tuition,
fees, books, supplies, and equipment (including computer
equipment and related services) required for the enrollment or attendance at an eligible educational institution,
including those expenses incurred in connection with a
recognized postsecondary credential program.
They also include expenses for special needs services
incurred by or for special needs students in connection
with their enrollment or attendance at an eligible educational institution.
Additional qualified education expenses in connection with elementary and secondary tuition.
Qualified higher education expenses include the following
expenses in connection with the enrollment or attendance
at an elementary or secondary public, private, or religious
school:
• Tuition.
• Curriculum and curricular materials.
• Books or other instructional materials.
• Online education materials.
• Tuition for tutoring or educational classes outside of
the home, including at a tutoring facility, but only if the
tutor or instructor meets certain requirements. (See
Requirements for tutors later.)
Publication 590-B (2025)
Chapter 1
subject.
For more information, see chapter 8 of Pub. 970.
First home. Even if you are under age 591/2, you don't
have to pay the 10% additional tax on up to $10,000 of
distributions you receive to buy, build, or rebuild a first
home. To qualify for treatment as a first-time homebuyer
distribution, the distribution must meet all the following requirements.
1. It must be used to pay qualified acquisition costs (defined next) before the close of the 120th day after the
day you received it.
2. It must be used to pay qualified acquisition costs for
the main home of a first-time homebuyer (defined below) who is any of the following.
a. Yourself.
b. Your spouse.
c. Your or your spouse's child.
d. Your or your spouse's grandchild.
e. Your or your spouse's parent or other ancestor.
3. When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions
can't be more than $10,000.
Tip: If both you and your spouse are first-time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay
the 10% additional tax.
Traditional IRAs
27
Qualified acquisition costs. Qualified acquisition
costs include the following items.
• Costs of buying, building, or rebuilding a home.
• Any usual or reasonable settlement, financing, or
other closing costs.
First-time homebuyer. Generally, you are a first-time
homebuyer if you had no present interest in a main home
during the 2-year period ending on the date of acquisition
of the home which the distribution is being used to buy,
build, or rebuild. If you are married, your spouse must also
meet this no-ownership requirement.
Date of acquisition. The date of acquisition is the
date that:
• You enter into a binding contract to buy the main home
for which the distribution is being used, or
• The building or rebuilding of the main home for which
the distribution is being used begins.
Tip: If you received a distribution to buy, build, or rebuild a first home and the purchase or construction was
canceled or delayed, you could generally contribute the
amount of the distribution to an IRA within 120 days of the
distribution and not pay income tax or the 10% additional
tax on early distributions. This contribution is treated as a
rollover contribution to the IRA.
Qualified reservist distributions. A qualified reservist
distribution isn't subject to the 10% additional tax on early
distributions.
Definition. A distribution you receive is a qualified reservist distribution if the following requirements are met.
• You were ordered or called to active duty after September 11, 2001.
• You were ordered or called to active duty for a period
of more than 179 days or for an indefinite period because you are a member of a reserve component.
• The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or
403(b) plan or a similar arrangement.
• The distribution was made no earlier than the date of
the order or call to active duty and no later than the
close of the active duty period.
Reserve component. The term “reserve component”
means the:
• Army National Guard of the United States,
• Army Reserve,
• Navy Reserve,
• Marine Corps Reserve,
• Air National Guard of the United States,
• Air Force Reserve,
• Coast Guard Reserve, or
• Reserve Corps of the Public Health Service.
28
Chapter 1
Qualified birth or adoption distribution. A qualified
birth or adoption distribution is any distribution from an applicable eligible retirement plan if made during the 1-year
period beginning on the date on which your child was born
or the date on which the legal adoption of your child was
finalized.
A qualified birth or adoption distribution must not exceed $5,000 per taxpayer. In addition, an eligible adoptee
is any individual (other than the child of the taxpayer’s
spouse) who has not reached age 18 or is physically or
mentally incapable of self-support.
Amount may be repaid. If you receive a qualified
birth or adoption distribution, you can make one or more
contributions to an eligible retirement plan during the
3-year period beginning on the day after the date the distribution was received. You make this repayment if you are
a beneficiary of that plan, the plan accepts rollover contributions, and the total of those contributions does not exceed the amount of the qualified birth or adoption distribution. Any contribution made to the eligible retirement plan
as a repayment of a qualified birth or adoption distribution
may be eligible for tax-free rollover treatment.
In the case of a qualified birth or adoption distribution
made on or before December 29, 2022, you can make
one or more contributions after the distribution but before
January 1, 2026.
Domestic abuse victim distributions. An eligible distribution to a domestic abuse victim is a distribution to a domestic abuse victim from an applicable eligible retirement
plan and made to that individual during the 1-year period
beginning on any date on which the individual is a victim
of domestic abuse by a spouse or domestic partner. See
Notice
2024-55,
available
at
IRS.gov/irb/
2024-28_IRB#NOT-2024-55, for more information.
Distribution limits. An eligible distribution to a domestic abuse victim must not exceed the lesser of
$10,300 for 2025 or 50% of the present value of the IRA.
Emergency personal expense distributions. An emergency personal expense distribution is a distribution from
an applicable eligible retirement plan for the purposes of
meeting the unforeseeable or immediate financial needs
relating to necessary personal or family emergency expenses. See Notice 2024-55, available at IRS.gov/irb/
2024-28_IRB#NOT-2024-55, for more information.
Distribution limits. You are limited to taking one
emergency personal expense distribution per calendar
year and the amount that may be treated as an emergency personal expense distribution must not exceed the
lesser of $1,000 or your total interest in the IRA minus
$1,000. You are also limited in taking emergency personal
expense distributions in subsequent years as you may not
take this type of distribution in the following 3 calendar
years unless:
• The previous distribution is repaid, or
• The total amounts contributed to the IRA after the previous distribution is at least equal to the amount of the
distribution which has not been repaid.
Traditional IRAs
Publication 590-B (2025)
Early Distribution Repayments Worksheet
1. Total distribution amount
Keep for Your Records
............................................................
1.
2. Current year repayment amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Amount repaid in prior years
.........................................................
3.
4. Total repayments. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Distribution amount not repaid. Subtract line 4 from line 1
....................................
5.
6. Basis in the IRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Value of the IRA at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Divide line 6 by line 7. Enter the result as a decimal (rounded to at least three places). This is your tax-free/
taxable ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9. Multiply line 2 by line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Subtract line 9 from line 2. Reduce your AGI by this amount (in addition to any other changes you make) on
your amended return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
Repayment of certain early distributions. Contributions made to the eligible retirement plan as a repayment
of one of the early distributions listed below may be eligible for tax-free rollover treatment:
• Emergency personal expense distributions,
• Domestic abuse victim distributions, and
• Terminally ill individual distributions.
You can make one or more contributions to an eligible
retirement plan, including an IRA, during the 3-year period
beginning on the day after the date the distribution was received.
You must be a beneficiary of the plan and the total
amount you repay can't exceed the amount of the emergency personal expense, domestic abuse victim, or terminally ill individual distributions you received.
Additional 10% Tax
The additional tax on early distributions is 10% of the
amount of the early distribution that you must include in
your gross income. This tax is in addition to any regular income tax resulting from including the distribution in income.
The tax on early distributions doesn't apply to the part
of a distribution that represents a return of your nondeductible contributions (basis).
Use Form 5329 to figure the tax. See the discussion of
Form 5329, later, under Reporting Additional Taxes for information on filing the form.
Example. Tom Jones, who is 35 years old, receives a
$3,000 distribution from his traditional IRA account. Tom
doesn't meet any of the exceptions to the 10% additional
tax, so the $3,000 is an early distribution. Tom never made
any nondeductible contributions to his IRA. He must include the $3,000 in his gross income for the year of the
distribution and pay income tax on it. Tom must also pay
an additional tax of $300 (10% (0.10) × $3,000). He files
Form 5329. See the filled-in Form 5329, later.
Publication 590-B (2025)
Chapter 1
Caution: Early distributions of funds from a SIMPLE
retirement account made within 2 years of beginning participation in the SIMPLE are subject to a 25%, rather than
a 10%, early distributions tax.
Early Distribution Repayments
Certain early distributions are excepted from the 10% additional tax and may be repaid to an eligible retirement
plan, which includes an IRA. These distributions are
known as “early distributions whose repayments are treated as rollovers.”
Early distributions whose repayments are treated as
rollovers. This phrase describes the following distributions:
• Qualified birth or adoption distributions.
• Terminally ill individual distributions.
• Domestic abuse victim distributions.
• Emergency personal expense distributions.
• Qualified disaster recovery distributions.
Repaying the distribution. When you make a repayment of certain early distributions affects how you report
the distribution and repayment. Generally, if you make the
distribution and a repayment in the same tax year, you can
report the amount of the distribution, the amount of the repayment of the distribution, and if the amount of the repayment is less than the amount of the distribution, figure and
report the taxable portion of the distribution on Form 1040,
line 4b.
However, if you make a repayment in a year following
the year you make the distribution, you will need to amend
the return for the tax year during which you made the distribution. You will lower your income for that year by reflecting the amount of the repayment.
Amend your return by using Form 1040-X, Amended
U.S. Individual Income Tax Return.
Figuring the taxable amount. When you make a repayment in a year other than the distribution year, you must
Traditional IRAs
29
figure the amount you must reduce your taxable income in
the year of the distribution. If you are repaying less than
the full distribution, you must figure the part of the distribution that was taxable when distributed. This will be the
amount you lower your income on your amended return.
The tax-free/taxable ratio. The tax-free/taxable ratio is
the fraction arrived at by dividing the IRA’s basis by the
value of the IRA at the end of the year. This ratio is used to
determine how much of the distribution you are repaying
was taxable when distributed. This will be the amount you
reduce your income on your amended return.
IRA Basis
Tax-free/taxable ratio
=
Value of the IRA at the end of
the year
Amending Your Return
When you repay an early distribution, you lower the income that was taxable in the year of the distribution. You
correct your taxable income for the year of the distribution
by filing an amended return (Form 1040-X).
Completing your amended return. Enter in column A,
on line 1 of your Form 1040-X, the amount of your AGI on
your original return or the most recent amended return, if
applicable. In column B, enter the amount you’re decreasing your income and enter the correct amount in Column
C.
In Part II, on page 2, describe the change you’re making, for example, “I am lowering my adjusted gross income
to reflect the repayment of an early distribution from an
IRA.” Describe any other changes you are making in addition to the repayment of the early distribution and adjust
the amounts on line 1 accordingly.
For more information about amending your return, see
the instructions for Form 1040-X.
Excess Accumulations (Insufficient
Distributions)
You can't keep amounts in your traditional IRA (including
SEP and SIMPLE IRAs) indefinitely. Generally, you must
begin receiving distributions by April 1 of the year following the year in which you reach age 73. The required minimum distribution for any year after the year in which you
reach age 73 must be made by December 31 of that later
year. See Your required beginning date for more information.
Tax on excess accumulations. If distributions are
less than the required minimum distribution for the year,
discussed earlier under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to
pay a 25% excise tax for that year on the amount not distributed as required.
Reduced additional tax rate for excess accumulations. You may be subject to a reduced additional tax rate
of 10% of the amount not distributed, if, during the correc30
Chapter 1
tion window, you take a distribution of the amount on
which the tax is due (the excess accumulation) and submit
a tax return reflecting this additional tax.
The “correction window” ends on the earliest of the following dates:
• The date of mailing the deficiency notice with respect
to the imposition of this tax,
• The date the tax is assessed, or
• The last day of the second taxable year that begins after the end of the taxable year in which the additional
tax is imposed.
Reporting the tax. Use Form 5329 to report the tax on
excess accumulations. See the discussion of Form 5329,
later, under Reporting Additional Taxes for more information on filing the form.
Request to waive the tax. If the excess accumulation is
due to reasonable error, and you have taken, or are taking,
steps to remedy the insufficient distribution, you can request that the tax be waived. If you believe you qualify for
this relief, attach a statement of explanation and complete
Form 5329 as instructed under Waiver of tax for reasonable cause in the Instructions for Form 5329.
Exemption from tax. If you are unable to take required
distributions because you have a traditional IRA invested
in a contract issued by an insurance company that is in
state insurer delinquency proceedings, the 25% excise tax
doesn't apply if the conditions and requirements of Revenue Procedure 92-10 are satisfied. Those conditions and
requirements are summarized below. Revenue Procedure
92-10 is in Cumulative Bulletin 1992-1. You can read the
revenue procedure at most IRS offices, at many public libraries, and online at IRS.gov.
Conditions. To qualify for exemption from the tax, the
assets in your traditional IRA must include an affected investment. Also, the amount of your required distribution
must be determined as discussed earlier under When
Must You Withdraw Assets? (Required Minimum Distributions).
Affected investment defined. Affected investment
means an annuity contract or a guaranteed investment
contract (with an insurance company) for which payments
under the terms of the contract have been reduced or suspended because of state insurer delinquency proceedings
against the contracting insurance company.
Requirements. If your traditional IRA (or IRAs) includes assets other than your affected investment, all traditional IRA assets, including the available portion of your
affected investment, must be used to satisfy as much as
possible of your IRA distribution requirement. If the affected investment is the only asset in your IRA, as much of
the required distribution as possible must come from the
available portion, if any, of your affected investment.
Available portion. The available portion of your affected investment is the amount of payments remaining after
Traditional IRAs
Publication 590-B (2025)
they have been reduced or suspended because of state
insurer delinquency proceedings.
Make up of shortfall in distribution. If the payments
to you under the contract increase because all or part of
the reduction or suspension is canceled, you must make
up the amount of any shortfall in a prior distribution because of the proceedings. You make up (reduce or eliminate) the shortfall with the increased payments you receive.
You must make up the shortfall by December 31 of the
calendar year following the year that you receive increased payments.
Reporting Additional Taxes
Generally, you must use Form 5329 to report the tax on
excess contributions, early distributions, and excess accumulations.
time and place you would have filed Form 1040, 1040-SR,
or 1040-NR. Be sure to include your address on page 1
and your signature and date on page 3. For payment options see the Instructions for Form 1040 or the Instructions
for Form 1040-NR, or go to IRS.gov/Payments to see all
your payment options.
Form 5329 not required. You don't have to use Form
5329 if any of the following situations exist.
• Distribution code 1 (early distribution) is correctly
shown in box 7 of Form 1099-R. If you don't owe any
other additional tax on a distribution, multiply the taxable part of the early distribution by 10% and enter the
result on Schedule 2 (Form 1040), line 8. If you don't
have to file Form 5329, check the box next to the entry
space after the text, “if not required, check here.” However, if you owe this tax and also owe any other additional tax on a distribution, don't enter this 10% additional tax directly on your Form 1040, 1040-SR, or
1040-NR. You must file Form 5329 to report your additional taxes.
Filing a tax return. If you must file an individual income
tax return, complete Form 5329 and attach it to your Form
1040, 1040-SR, or 1040-NR. Enter the total additional
taxes due on Schedule 2 (Form 1040), line 8.
• If you rolled over part or all of a distribution from a
Not filing a tax return. If you don't have to file a return,
but do have to pay one of the additional taxes mentioned
earlier, file the completed Form 5329 with the IRS at the
• You have a qualified disaster distribution.
Publication 590-B (2025)
Chapter 1
qualified retirement plan or IRA, the part rolled over
isn't subject to the tax on early distributions.
Traditional IRAs
31
Form
5329
Department of the Treasury
Internal Revenue Service
Additional Taxes on Qualified Plans
(Including IRAs) and Other Tax-Favored Accounts
OMB No. 1545-0074
2025
Attach to Form 1040, 1040-SR, 1040-NR, or 1041.
Go to www.irs.gov/Form5329 for instructions and the latest information.
Attachment
Sequence No. 29
Your social security number
Name of individual subject to additional tax. If married filing jointly, see instructions.
Tom Jones
004-00-0000
Home address (number and street), or P.O. box if mail is not delivered to your home
Fill in Your Address Only
if You Are Filing This
Form by Itself and Not
With Your Tax Return
Apt. no.
If this is an amended
return, check here
City, town or post office, state, and ZIP code. If you have a foreign address, also complete the spaces below. See instructions.
Foreign country name
Foreign province/state/county
Foreign postal code
If you only owe the additional 10% tax on the full amount of the early distributions, you may be able to report this tax directly on
Schedule 2 (Form 1040), line 8, without filing Form 5329. See instructions.
Part I
Additional Tax on Early Distributions. Complete this part if you took a taxable distribution (other than a qualified disaster
recovery distribution) before you reached age 59½ from a qualified retirement plan (including an IRA) or modified endowment contract
(unless you are reporting this tax directly on Schedule 2 (Form 1040)—see above). You may also have to complete this part to indicate
that you qualify for an exception to the additional tax on early distributions or for certain Roth IRA distributions. See instructions.
1
2
3
4
Early distributions includible in income (see instructions). For Roth IRA distributions, see instructions .
Early distributions included on line 1 that are not subject to the additional tax (see instructions).
. . . . . . . . . .
Enter the appropriate exception number from the instructions:
Amount subject to additional tax. Subtract line 2 from line 1 . . . . . . . . . . . . . .
Additional tax. Enter 10% (0.10) of line 3. Include this amount on Schedule 2 (Form 1040), line 8 . .
Caution: If any part of the amount on line 3 was a distribution from a SIMPLE IRA, you may have to
include 25% of that amount on line 4 instead of 10%. See instructions.
Part II
1
3000
2
3
4
-03000
300
Additional Tax on Certain Distributions From Education Accounts and ABLE Accounts. Complete this part
if you included an amount in income, on Schedule 1 (Form 1040), line 8z, from a Coverdell education savings account
(ESA) or a qualified tuition program (QTP), or on Schedule 1 (Form 1040), line 8q, from an ABLE account.
5
6
7
8
Distributions included in income from a Coverdell ESA, a QTP, or an ABLE account . . . . . .
5
Distributions included on line 5 that are not subject to the additional tax (see instructions) . . . .
6
Amount subject to additional tax. Subtract line 6 from line 5 . . . . . . . . . . . . . .
7
Additional tax. Enter 10% (0.10) of line 7. Include this amount on Schedule 2 (Form 1040), line 8 . .
8
Part III
Additional Tax on Excess Contributions to Traditional IRAs. Complete this part if you contributed more to your
traditional IRAs (which include your traditional SEP IRAs and traditional SIMPLE IRAs) for 2025 than is allowable or you
had an amount on line 17 of your 2024 Form 5329.
9
10
11
12
13
14
15
16
17
9
Enter your excess contributions from line 16 of your 2024 Form 5329. See instructions. If zero, go to line 15
If your traditional IRA contributions for 2025 are less than your maximum
allowable contribution, see instructions. Otherwise, enter -0- . . . . . .
10
2025 traditional IRA distributions included in income (see instructions) . . .
11
2025 distributions of prior year excess contributions to traditional IRAs (see
instructions) . . . . . . . . . . . . . . . . . . . . . .
12
Add lines 10, 11, and 12 . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior year excess contributions. Subtract line 13 from line 9. If zero or less, enter -0- . . . . . .
Excess contributions for 2025 (see instructions) . . . . . . . . . . . . . . . . . .
Total excess contributions. Add lines 14 and 15 . . . . . . . . . . . . . . . . . .
13
14
15
16
Additional tax. Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31,
2025 (including 2025 contributions made in 2026). Include this amount on Schedule 2 (Form 1040), line 8 . .
17
Part IV
Additional Tax on Excess Contributions to Roth IRAs. Complete this part if you contributed more to your Roth
IRAs (which include your Roth SEP IRAs and Roth SIMPLE IRAs) for 2025 than is allowable or you had an amount on line
25 of your 2024 Form 5329.
18
19
20
21
22
23
24
25
Enter your excess contributions from line 24 of your 2024 Form 5329. See instructions. If zero, go to line 23
If your Roth IRA contributions for 2025 are less than your maximum allowable
contribution, see instructions. Otherwise, enter -0- . . . . . . . . .
19
2025 distributions from your Roth IRAs (see instructions) . . . . . . .
20
Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter -0- . . . . . .
Excess contributions for 2025 (see instructions) . . . . . . . . . . . . . . . . . .
Total excess contributions. Add lines 22 and 23 . . . . . . . . . . . . . . . . . .
Additional tax. Enter 6% (0.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2025
(including 2025 contributions made in 2026). Include this amount on Schedule 2 (Form 1040), line 8 . . .
For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions.
32
Chapter 1
Cat. No. 13329Q
Traditional IRAs
18
21
22
23
24
25
Form 5329 (2025) Created 6/12/25
Publication 590-B (2025)
Tip: Beginning in 2023, SEP and SIMPLE IRAs can be
designated as Roth IRAs.
2.
Traditional IRA. A traditional IRA is any IRA that isn't a
Roth IRA or SIMPLE IRA. Traditional IRAs are discussed
in chapter 1.
Roth IRAs
Are Distributions Taxable?
Reminders
Disaster relief. If you were affected by a qualified disaster, see chapter 3.
Designated Roth accounts. Designated Roth accounts
are separate accounts under section 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 aren't included in your income. Designated Roth accounts aren't IRAs and shouldn’t 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 doesn't impact your eligibility to contribute to the
other. See Pub. 575 for more information on designated
Roth accounts.
Introduction
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. You don't report Roth IRA
contributions on your return.
Basis of distributed property. The basis of property
distributed from a Roth IRA is its fair market value on the
date of distribution, whether or not the distribution is a
qualified distribution.
Withdrawals of contributions by due date. If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in
which you made the contribution, the contributions are
treated as if you never made them. If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. The withdrawal of contributions is tax free, but you must include
the earnings on the contributions in income for the year in
which you made the contributions.
What Are Qualified Distributions?
A qualified distribution is any payment or distribution from
your Roth IRA that meets the following requirements.
What Is a Roth IRA?
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 How Can a Traditional IRA Be
Opened? in chapter 1 of Pub. 590-A.
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, a Roth SEP IRA, or a Roth SIMPLE
IRA.
Unlike a traditional IRA, you can't deduct contributions
to a Roth IRA. But, if you satisfy the requirements, qualified distributions (discussed later) are tax free and you
can leave amounts in your Roth IRA as long as you live.
Publication 590-B (2025)
You don't include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). You also don't include
distributions from your Roth IRA that you roll over tax free
into another Roth IRA. You may have to include part of
other distributions in your income. See Ordering Rules for
Distributions, later.
Chapter 2
1. It is made after the 5-year period beginning with the
first tax year for which a contribution was made to a
Roth IRA set up for your benefit.
2. The payment or distribution is:
a. Made on or after the date you reach age 591/2,
b. Made because you are disabled (defined earlier),
c. Made to a beneficiary or to your estate after your
death, or
d. One that meets the requirements listed under First
home under Exceptions in chapter 1 (up to a
$10,000 lifetime limit).
Roth IRAs
33
Figure 2-1.
Is the Distribution From Your Roth IRA a Qualified Distribution?
Start Here
Has it been at least 5 years from the beginning of the
year for which you first set up and contributed to a
Roth IRA?
No
Yes
Yes
Were you at least 591⁄2 years old at the time of the
distribution?
No
Yes
Is the distribution being used to buy or rebuild a first
home as explained in First home under Early
Distr ibutions in chapter 1?
No
Yes
Is the distribution due to your being disabled (defined
under Early Distributions in chapter 1)?
No
Was the distribution made to the owner’s beneficiary
or the owner’s estate?
Yes
The distribution from the Roth IRA is a qualified
distribution. It isn’t subject to tax.
34
Chapter 2
Roth IRAs
No
The distribution from the Roth IRA
isn’t a qualified distribution. The
portion of the distribution allocable
to earnings may be subject to tax
and it may be subject to the 10%
additional tax.
This text is long and has been trimmed here. Open the source document for the complete record.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.