# Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A8b844aeed862b166 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Contents Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1 Publication 590-A What’s New for 2025 . . . . . . . . . . . . . . . . . . . . . . . . 1 Contributions to Individual Retirement Arrangements (IRAs) What’s New for 2026 . . . . . . . . . . . . . . . . . . . . . . . . 2 For use in preparing 2025 Returns Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Chapter 1. Traditional IRAs . . . . . . . . . . . . . . . . . . 6 Who Can Open a Traditional IRA? . . . . . . . . . . . . 6 When Can a Traditional IRA Be Opened? . . . . . . . 7 How Can a Traditional IRA Be Opened? . . . . . . . . 7 How Much Can Be Contributed? . . . . . . . . . . . . . 9 When Can Contributions Be Made? . . . . . . . . . . 10 How Much Can You Deduct? . . . . . . . . . . . . . . . 11 What if You Inherit an IRA? . . . . . . . . . . . . . . . . 21 Can You Move Retirement Plan Assets? . . . . . . . 21 When Can You Withdraw or Use Assets? . . . . . . 31 What Acts Result in Penalties or Additional Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Chapter 2. Roth IRAs . . . . . . . . . . . . . . . . . . . . . 38 What Is a Roth IRA? . . . . . . . . . . . . . . . . . . . . . 39 When Can a Roth IRA Be Opened? . . . . . . . . . . 39 Can You Contribute to a Roth IRA? . . . . . . . . . . . 39 Can You Move Amounts Into a Roth IRA? . . . . . . 44 Chapter 3. Retirement Savings Contributions Credit (Saver's Credit) . . . . . . . . . . . . . . . . . . 46 How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 48 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Future Developments For the latest information about developments related to Pub. 590-A, such as legislation enacted after it was published, go to IRS.gov/Pub590A. What’s New for 2025 Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Korean (한국어) • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) • IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) Jan 15, 2026 IRA contribution limit for 2025. For 2025, the IRA contribution limit remains $7,000 ($8,000 for individuals age 50 or older). Trump account and new Form 4547. Recent legislation allows parents, guardians, and other authorized individuals to elect to establish a new type of individual retirement account, called a Trump account, for the exclusive benefit of certain children. If the child was born after 2024 and before 2029, is a U.S. citizen, and meets certain other requirements, the authorized individual may also elect to receive a $1,000 pilot program contribution to the child’s Trump account. Both elections can be made on Form Publication 590-A (2025) Catalog Number 66302J Department of the Treasury Internal Revenue Service www.irs.gov 4547, which can be filed at the same time as the authorized individual’s 2025 income tax return. For more information on Trump accounts, and to learn how to make these elections, see Form 4547 and its instructions. Modified AGI limit for traditional IRA contributions. For 2025, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: • More than $126,000 but less than $146,000 for a married couple filing a joint return or a qualifying surviving spouse, • More than $79,000 but less than $89,000 for a single individual or head of household, or • Less than $10,000 for a married individual filing a separate return. Modified AGI limit for certain married individuals. If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $236,000 (up from $230,000 for 2024) but less than $246,000 (up from $240,000 for 2024). If your modified AGI is $246,000 or more, you can’t take a deduction for contributions to a traditional IRA. Modified AGI limit for Roth IRA contributions. For 2025, your Roth IRA contribution limit is reduced (phased out) in the following situations. • Your filing status is married filing jointly or qualifying surviving spouse and your modified AGI is at least $236,000. You can’t make a Roth IRA contribution if your modified AGI is $246,000 or more. • Your filing status is single, head of household, or mar- ried filing separately and you didn’t live with your spouse at any time in 2025 and your modified AGI is at least $150,000. You can’t make a Roth IRA contribution if your modified AGI is $165,000 or more. • Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more. What’s New for 2026 IRA contribution limit increased for 2026. Beginning in 2026, the IRA contribution limit is increased to $7,500 ($8,600 for individuals age 50 or older) from $7,000 ($8,000 for individuals age 50 or older). Modified AGI limit for traditional IRA contributions increased. For 2026, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: • More than $129,000 but less than $149,000 for a married couple filing a joint return or a qualifying surviving spouse, 2 • More than $81,000 but less than $91,000 for a single individual or head of household, or • Less than $10,000 for a married individual filing a separate return. Modified AGI limit for certain married individuals increased. If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $242,000 (up from $236,000 for 2025) but less than $252,000 (up from $246,000 for 2025). If your modified AGI is $252,000 or more, you can’t take a deduction for contributions to a traditional IRA. Modified AGI limit for Roth IRA contributions increased. For 2026, your Roth IRA contribution limit is reduced (phased out) in the following situations. • Your filing status is married filing jointly or qualifying surviving spouse and your modified AGI is at least $242,000. You can’t make a Roth IRA contribution if your modified AGI is $252,0000 or more. • Your filing status is single, head of household, or mar- ried filing separately and you didn’t live with your spouse at any time in 2026 and your modified AGI is at least $153,000. You can’t make a Roth IRA contribution if your modified AGI is $168,000 or more. • Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more. Reminders Qualified tuition program rollover to a Roth IRA. Beginning with distributions made after December 31, 2023, a beneficiary of a section 529 qualified tuition program is permitted to roll over a distribution from a section 529 account into a Roth IRA for the beneficiary if certain requirements are met. See Qualified tuition program rollover to a Roth IRA, later. Increase in required minimum distribution age. Individuals who reach age 72 after December 31, 2022, may delay receiving their required minimum distributions (RMDs) until April 1 of the year following the year in which they turn age 73. Qualified disaster tax relief. The special rules that provide for tax-favored withdrawals and repayments from certain qualified plans for taxpayers who suffered an economic loss as a result of a qualified disaster were made permanent by the SECURE 2.0 Act of 2022. A qualified disaster is a major disaster that occurred on or after January 26, 2021, and was declared by the President after December 27, 2020, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Act. For more information, see Disaster-Related Relief in Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs). Publication 590-A (2025) Repayment of certain early distributions. Contributions made to the eligible retirement plan as a repayment of emergency personal expense distributions, domestic abuse distributions, and terminal illness distributions may be eligible for tax-free rollover treatment. See Pub. 590-B for more information. Certain corrective distributions not subject to 10% additional tax. Beginning on December 29, 2022, 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. Divorce or separation instruments after 2018. Amounts paid as alimony or separate maintenance payments under a divorce or separation instrument executed after 2018 won't be deductible by the payer. Such amounts also won't be includible in the income of the recipient. The same is true of alimony paid under a divorce or separation instrument executed before 2019 and modified after 2018, if the modification expressly states that the alimony isn't deductible to the payer or includible in the income of the recipient. For more information, see Pub. 504. 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. Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited 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 these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Introduction This publication discusses contributions to 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 distributions (including rollovers) from an IRA, see Pub. 590-B. 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 • Generally, amounts in your IRA (including earnings and gains) aren’t taxed until distributed. In some cases, amounts aren’t taxed at all if distributed according to the rules. Publication 590-A (2025) What's in this publication? This publication discusses contributions to traditional and Roth IRAs. It explains the rules for: • Setting up an IRA, • Contributing to an IRA, • Transferring money or property to and from an IRA, and • Taking a credit for contributions to 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 and sample forms, 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. 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: Publications 505 Tax Withholding and Estimated Tax 505 3 590-B Distributions from Individual Retirement Arrangements (IRAs) 560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) 571 Tax-Sheltered Annuity Plans (403(b) Plans) 575 Pension and Annuity Income 939 General Rule for Pensions and Annuities 590-B 5305-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)—for Use With a Designated Financial Institution 5305-SIMPLE 560 571 575 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5329 5498 IRA Contribution Information 5498 939 Forms (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 5304-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)—Not for Use With a Designated Financial Institution 5305-S SIMPLE Individual Retirement Trust Account 5305-SA SIMPLE Individual Retirement Custodial Account W-4P 1099-R 5304-SIMPLE 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 5305-S 5305-SA See How To Get Tax Help near the end of this publication 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. the credit for qualified retirement savings contributions (saver's credit) chapter 3. how to keep a record of your contributions to, and distributions from, your traditional IRA(s) Appendix A. SEP IRAs, SIMPLE IRAs, and 401(k) plans Pub. 560. Coverdell education savings accounts (ESAs) (formerly called education IRAs) Pub. 970. IF for 2025, you: • received social security benefits, • had taxable compensation, • contributed to a traditional IRA, and • you or your spouse was covered by an employer retirement plan, and you want to... THEN see... first figure your modified adjusted gross income (AGI) Appendix B, Worksheet 1. then figure how much of your traditional IRA contribution you can deduct Appendix B, Worksheet 2. and finally figure how much of your social security is taxable Appendix B, Worksheet 3. 4 Publication 590-A (2025) Table I-2. How Are a Traditional IRA and a Roth IRA Different? This table shows the differences between traditional IRAs (not including traditional SIMPLE IRAs) and Roth IRAs (not including Roth SIMPLE IRAs). Answers in the middle column apply to traditional IRAs. Answers in the right column apply to Roth IRAs. Question Answer Traditional IRA? Roth IRA? Is there an age limit on when I can open and contribute to a . . . . . . . . . . . . . . . . No. For tax years after 2019, you are able to contribute to your IRA even if you have reached age 701/2 or older. See Who Can Open a Traditional IRA? in chapter 1. No. You can be any age. See Can You Contribute to a Roth IRA? in chapter 2. If I earned more than $7,000 in 2025 ($8,000 if I was age 50 or older by the end of 2025), is there a limit on how much I can contribute to a . . . . . . . . . . . Yes. For 2025, you can contribute to a traditional IRA up to: • $7,000, or • $8,000 if you were age 50 or older by the end of 2025. There is no upper limit on how much you can earn and still contribute. See How Much Can Be Contributed? in chapter 1. Yes. For 2025, you may be able to contribute to a Roth IRA up to: • $7,000, or • $8,000 if you were age 50 or older by the end of 2025, but the amount you can contribute may be less than that depending on your income, your filing status, and if you contribute to another IRA. See How Much Can Be Contributed? and Table 2-1 in chapter 2. Can I deduct contributions to a . . . . . . . Yes. You may be able to deduct your contributions to a traditional IRA depending on your income, your filing status, whether you are covered by a retirement plan at work, and whether you receive social security benefits. See How Much Can You Deduct? in chapter 1. No. You can never deduct contributions to a Roth IRA. See What Is a Roth IRA? in chapter 2. Do I have to file a form just because I contribute to a . . . . . . . . . . . . . . . . . . . . Not unless you make nondeductible contributions to your traditional IRA. In that case, you must file Form 8606. See Nondeductible Contributions in chapter 1. No. You don’t have to file a form if you contribute to a Roth IRA. See Contributions not reported in chapter 2. Publication 590-A (2025) 5 Roth IRAs are discussed in chapter 2. SIMPLE IRAs are discussed in Pub. 560. For a traditional IRA that receives employer contributions from a SEP arrangement, see Simplified Employee Pension (SEP), later. 1. Traditional IRAs Who Can Open a Traditional IRA? 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 2 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 the original 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. You can open and make contributions to a traditional IRA if you (or, if you file a joint return, your spouse) received taxable compensation during the year. You can have a traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. See How Much Can You Deduct, later. For tax years beginning after December 31, 2019, TIP the rule that you are not able to make contribu- tions to your traditional IRA for the year in which you reach age 70½ and all later years has been repealed. Both spouses have compensation. If both you and your spouse have compensation, each of you can open an IRA. You can’t both participate in the same IRA. If you file a joint return, only one of you needs to have compensation. What Is Compensation? Generally, compensation is what you earn from working. For a summary of what compensation does and doesn’t include, see Table 1-1. Compensation includes all of the items discussed next (even if you have more than one type). Wages, salaries, etc. Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2. However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970, Tax Benefits for Education. Commissions. An amount you receive that is a percentage of profits or sales price is compensation. Self-employment income. If you are self-employed (a sole proprietor or a partner), compensation is the net 6 Chapter 1 Traditional IRAs Publication 590-A (2025) earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: What Isn’t Compensation? Compensation doesn’t include any of the following items. • The deduction for contributions made on your behalf • Earnings and profits from property, such as rental in- • The deduction allowed for the deductible part of your • Pension or annuity income. • Deferred compensation received (compensation pay- to retirement plans, and self-employment taxes. Compensation includes earnings from self-employment even if they aren’t subject to self-employment tax because of your religious beliefs. come, interest income, and dividend income. ments postponed from a past year). • Income from a partnership for which you don’t provide services that are a material income-producing factor. Self-employment loss. If you have a net loss from self-employment, don’t subtract the loss from your salaries or wages when figuring your total compensation. • Conservation Reserve Program (CRP) payments re- Alimony and separate maintenance. For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance but only with respect to divorce or separation instruments executed on or before December 31, 2018, that have not been modified to exclude such amounts. from income, such as foreign earned income and housing costs. ported on Schedule SE (Form 1040), line 1b. • Any amounts (other than combat pay) you exclude When Can a Traditional IRA Be Opened? Nontaxable combat pay. If you were a member of the U.S. Armed Forces, compensation includes any nontaxable combat pay you received. This amount should be reported in box 12 of your 2025 Form W-2 with code Q. You can open a traditional IRA at any time. However, the time for making contributions for any year is limited. See When Can Contributions Be Made, later. Graduate or postdoctoral study. A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2. However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970. How Can a Traditional IRA Be Opened? Table 1-1. Compensation for Purposes of an IRA Includes... wages, salaries, etc. commissions. self-employment income. taxable alimony and separate maintenance. nontaxable combat pay. Doesn’t include... earnings and profits from property. interest and dividend income. Kinds of traditional IRAs. Your traditional IRA can be an individual retirement account or annuity. It can be an employer or employee association trust account. A traditional IRA can also be used to accept employer contributions under a SEP arrangement (sometimes referred to as a traditional SEP IRA). Individual Retirement Account pension or annuity income. deferred compensation. income from certain partnerships. An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. The account is created by a written document. The document must show that the account meets all of the following requirements. • The trustee or custodian must be a bank, a federally any amounts you exclude from income. insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. • The trustee or custodian generally can’t accept contri- taxable non-tuition fellowship and stipend payments. Publication 590-A (2025) You can open different kinds of IRAs with a variety of organizations. You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. You can also open an IRA through your stockbroker. Any IRA must meet Internal Revenue Code requirements. The requirements for the various arrangements are discussed below. butions of more than the deductible amount for the Chapter 1 Traditional IRAs 7 year. However, rollover contributions and employer contributions to a traditional SEP IRA can be more than this amount. • Contributions, except for rollover contributions, must be in cash. See Rollovers, later. • You must have a nonforfeitable right to the amount at all times. • Money in your account can’t be used to buy a life insurance policy. • You can’t transfer the bonds. If you cash (redeem) the bonds before the year in which you reach age 591/2, you may be subject to a 10% additional tax. See Pub. 590-B for more information about the age 591/2 rule for early distributions and other distribution rules. You can roll over redemption proceeds into IRAs. SIMPLE IRA Plans and SIMPLE IRAs Individual Retirement Annuity A SIMPLE IRA plan is a tax-favored retirement plan that certain small employers (including self-employed employees) can set up for the benefit of their employees. Contributions to the employees’ SIMPLE IRA are made by the employers and are made up of salary reduction contributions and employer contributions which are either matching contributions or nonelective contributions. A SIMPLE IRA can be either a traditional SIMPLE IRA or a Roth SIMPLE IRA but are subject to different rules than traditional or Roth IRAs. See Pub. 560 for more information about SIMPLE IRA plans and SIMPLE IRAs. You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. Simplified Employee Pension (SEP) Arrangements and SIMPLE IRAs • Assets in your account can’t be combined with other property, except in a common trust fund or common investment fund. • You must start receiving distributions by April 1 of the year following the year in which you reach age 73. See Pub. 590-B for more information about RMDs and other distribution rules. An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. An individual retirement annuity must meet all the following requirements. • Your entire interest in the contract must be nonforfeitable. • The contract must provide that you can’t transfer any portion of it to any person other than the issuer. • There must be flexible premiums so that if your compensation changes, your payment can also change. This provision applies to contracts issued after November 6, 1978. • The contract must provide that contributions can’t be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. • Distributions must begin by April 1 of the year follow- ing the year in which you reach age 73. See Pub. 590-B for more information about RMDs and other distribution rules. Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. The bonds have the following features. • They stop earning interest when you reach age 701/2. If you die, interest will stop 5 years after your death, or on the date you would have reached age 701/2, whichever is earlier. 8 Chapter 1 A SEP arrangement is a written plan that allows an employer to make contributions to an employee’s traditional SEP IRA or Roth SEP IRA. Employer contributions to SEP IRAs are subject to different limits than individual contributions to traditional and Roth IRAs. Distributions from SEP IRAs are subject to traditional and Roth IRA rules. See Pub. 560 for more information about SEP arrangements and SIMPLE IRAs. Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members, provided certain requirements are met (such as separate accounting). The requirements for individual retirement accounts apply to these traditional and Roth IRAs. Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA must generally give you a disclosure statement at least 7 days before you open your IRA. However, the sponsor doesn’t have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. The disclosure statement must explain certain items in plain language. For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. This explanation must appear at the beginning of the disclosure statement. Traditional IRAs Publication 590-A (2025) If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. These requirements apply to all sponsors. • Naval 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. How Much Can Be Contributed? Figuring your IRA deduction. The repayment of qualified reservist distributions doesn’t affect the amount you can deduct as an IRA contribution. There are limits and other rules that affect the amount that can be contributed to a traditional IRA. These limits and rules are explained below. Reporting the repayment. If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Community property laws. Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit, each spouse figures their limit separately, using their own compensation. This is the rule even in states with community property laws. Example. In 2025, your IRA contribution limit is $7,000. However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. You can make a nondeductible contribution of $3,500 ($7,000 – $3,500). In an earlier year, you received a $3,000 qualified reservist distribution, which you would like to repay this year. For 2025, you can contribute a total of $10,000 to your IRA. This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $3,500; and a $3,000 qualified reservist repayment. You contribute the maximum allowable for the year. Because you are making a nondeductible contribution ($3,500) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $6,500 ($3,500 + $3,000) on line 1 of Form 8606. The qualified reservist repayment isn’t deductible. Brokers' commissions. Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. For information about whether you can deduct brokers' commissions, see Brokers' commissions, later, under How Much Can You Deduct. Trustees' fees. Trustees' administrative fees aren’t subject to the contribution limit. For information about whether you can deduct trustees' fees, see Trustees' fees, later, under How Much Can You Deduct. Qualified reservist repayments. If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined under Early Distributions in Pub. 590-B) you received. You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. See Early Distributions in Pub. 590-B for more information on qualified reservist distributions. Limit. Your qualified reservist repayments can’t be more than your qualified reservist distributions. When repayment contributions can be made. You can’t make these repayment contributions later than the date that is 2 years after your active duty period ends. No deduction. You can’t deduct qualified reservist repayments. Reserve component. The term “reserve component” means the: • Army National Guard of the United States, • Army Reserve, Publication 590-A (2025) Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. CAUTION See chapter 2 for information about Roth IRAs. ! General Limit For 2025, the most that can be contributed to your traditional IRA is generally the smaller of the following amounts. • $7,000 ($8,000 if you are age 50 or older). • Your taxable compensation (defined earlier) for the year. Note: This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. (See Nondeductible Contributions, later.) Qualified reservist repayments don’t affect this limit. Examples. Gina, who is 34 years old and single, earns $24,000 in 2025. Her IRA contributions for 2025 are limited to $7,000. Chapter 1 Traditional IRAs 9 Danny, an unmarried college student working part time, earns $3,500 in 2025. His IRA contributions for 2025 are limited to $3,500, the amount of his compensation. More than one IRA. If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. Annuity or endowment contracts. If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $7,000 ($8,000 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. If more than this amount is contributed, the annuity or endowment contract is disqualified. Kay Bailey Hutchison Spousal IRA Limit For 2025, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts. 1. $7,000 ($8,000 if you are age 50 or older). 2. The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. a. Your spouse's IRA contribution for the year to a traditional IRA. b. Any contributions for the year to a Roth IRA on behalf of your spouse. This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $14,000 ($15,000 if only one of you is age 50 or older, or $16,000 if both of you are age 50 or older). Note: This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Example. You are a full-time student with no taxable compensation and marry during the year. Neither you nor your spouse are at least age 50 by the end of 2025. Your spouse has taxable compensation of $30,000. Your spouse plans to contribute (and deduct) $7,000 to a traditional IRA. If you and your spouse file a joint return, you and your spouse can each contribute $7,000 to a traditional IRA. Because you have no compensation, you can add your spouse’s compensation, reduced by the amount of your spouse’s IRA contribution ($30,000 – $7,000 = $23,000), to your compensation (-0-) to figure your maximum contribution to a traditional IRA. In your case, $7,000 is your contribution limit, because $7,000 is less than $23,000 (your compensation for purposes of figuring your contribution limit). 10 Chapter 1 Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit, your filing status has no effect on the amount of allowable contributions to your traditional IRA. However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. See How Much Can You Deduct, later. Example. You and your spouse are both age 53. You both work and you both have a traditional IRA. You earned $3,800 and your spouse earned $48,000 in 2025. Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though you earned less than $8,000, you can contribute up to $8,000 to your IRA for 2025 if you file a joint return. Your spouse can contribute up to $8,000 to their IRA. If you file separate returns, the amount that can be contributed to your IRA is limited by your earned income, $3,800. Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you can’t contribute more after the due date of your return for that year to make up the difference. Example. You are age 40 and earn $30,000 in 2025. Although you can contribute up to $7,000 for 2025, you contribute only $3,000. After April 15, 2026, you can’t make up the difference between your actual contributions for 2025 ($3,000) and your 2025 limit ($7,000). You can’t contribute $4,000 more than the limit for any later year. More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. However, a penalty or additional tax may apply. See Excess Contributions, later, under What Acts Result in Penalties or Additional Taxes. When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Contributions must be in the form of money (cash, check, or money order). Property can’t be contributed. Although property can’t be contributed, your IRA may invest in certain property. For example, your IRA may purchase shares of stock. For other restrictions on the use of funds in your IRA, see Prohibited Transactions, later in this chapter. You may be able to transfer or roll over certain Traditional IRAs Publication 590-A (2025) property from one retirement plan to another. See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets. You can make a contribution to your IRA by having TIP your income tax refund (or a portion of your re- fund), if any, paid directly to your traditional IRA or Roth IRA. For details, see the instructions for your income tax return or Form 8888, Allocation of Refund. Contributions can be made to your traditional IRA for each year that you receive compensation. For any year in which you don’t work, contributions can’t be made to your IRA unless you receive taxable alimony, nontaxable combat pay, or military differential pay, or file a joint return with a spouse who has compensation. See Who Can Open a Traditional IRA, earlier. Even if contributions can’t be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. Contributions can resume for any years that you qualify. Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2025 must be made by April 15, 2026. For tax years beginning after 2019, the rule that TIP you are not able to make contributions to your traditional IRA for the year in which you reach age 70½ and all later years has been repealed. Designating year for which contribution is made. If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. If you don’t tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Filing before a contribution is made. You can file your return claiming a traditional IRA contribution before the contribution is actually made. Generally, the contribution must be made by the due date of your return, not including extensions. Contributions not required. You don’t have to contribute to your traditional IRA for every tax year, even if you can. How Much Can You Deduct? Generally, you can deduct the lesser of: • The contributions to your traditional IRA for the year, or • The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed. Publication 590-A (2025) Chapter 1 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. See Limit if Covered by Employer Plan, later. You may be able to claim a credit for contributions TIP to your traditional IRA. For more information, see chapter 3. Trustees' fees. Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA aren’t deductible as IRA contributions. You are also not able to deduct these fees as an itemized deduction. Brokers' commissions. These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Full deduction. If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: • $7,000 ($8,000 if you are age 50 or older), or • 100% of your compensation. This limit is reduced by any contributions made to a section 501(c)(18) plan on your behalf. Kay Bailey Hutchison Spousal IRA. In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: 1. $7,000 ($8,000 if the spouse with the lower compensation is age 50 or older), or 2. The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. a. The IRA deduction for the year of the spouse with the greater compensation. b. Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. c. Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Note: If you were divorced or legally separated (and didn’t remarry) before the end of the year, you can’t deduct any contributions to your spouse's IRA. After a divorce or legal separation, you can deduct only the contributions to your own IRA. Your deductions are subject to the rules for single individuals. Covered by an employer retirement plan. If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. This is discussed later under Limit if Covered by Employer Plan. Traditional IRAs 11 Limits on the amount you can deduct don’t affect the amount that can be contributed. Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. The “Retirement plan” box should be checked if you were covered. Reservists and volunteer firefighters should also see Situations in Which You Aren’t Covered, later. If you aren’t certain whether you were covered by your employer's retirement plan, you should ask your employer. Federal judges. For purposes of the IRA deduction, federal judges are covered by an employer plan. For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Tax year. Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. For almost all people, the tax year is the calendar year. Defined contribution plan. Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. However, also see Situations in Which You Aren’t Covered, later. A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Example. Company A has a money purchase pension plan. Its plan year is from July 1 to June 30. The plan provides that contributions must be allocated as of June 30. An employee leaves Company A on December 31, 2024. The contribution for the plan year ending on June 30, 2025, is made February 15, 2026. Because an amount is contributed to the employee’s account for the plan year, this employee is covered by the plan for their 2025 tax year. Note: A special rule applies to certain plans in which it isn’t possible to determine if an amount will be contributed to your account for a given plan year. If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee 12 Chapter 1 contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you aren’t covered for the tax year in which the plan year ends. If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. Example. You were covered by a profit-sharing plan and left the company on December 31, 2024. The plan year runs from July 1 to June 30. Under the terms of the plan, employer contributions don’t have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. As of June 30, 2025, no contributions were made that were allocated to the June 30, 2025, plan year, and no forfeitures had been allocated within the plan year. In addition, as of that date, the company wasn’t obligated to make a contribution for such plan year, and it was impossible to determine whether or not a contribution would be made for the plan year. On December 31, 2025, the company decided to contribute to the plan for the plan year ending June 30, 2025. That contribution was made on February 15, 2026. You are an active participant in the plan for your 2026 tax year but not for your 2025 tax year. No vested interest. If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. Defined benefit plan. If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. This rule applies even if you: • Declined to participate in the plan, • Didn’t make a required contribution, or • Didn’t perform the minimum service required to accrue a benefit for the year. A defined benefit plan is any plan that isn’t a defined contribution plan. In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. The plan administrator figures the amount needed to provide those benefits, and those amounts are contributed to the plan. Defined benefit plans include pension plans and annuity plans. Example. You are an employee of Company B and are eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. You leave Company B on December 31, 2024. Because you are eligible to participate in the plan for its year ending June 30, 2025, you are covered by the plan for your 2025 tax year. No vested interest. If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Traditional IRAs Publication 590-A (2025) Situations in Which You Aren’t Covered Unless you are covered by another employer plan, you aren’t covered by an employer plan if you are in one of the situations described below. Social security or railroad retirement. Coverage under social security or railroad retirement isn’t coverage under an employer retirement plan. Benefits from previous employer's plan. If you receive retirement benefits from a previous employer's plan, you aren’t covered by that plan. Reservists. If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. You aren’t covered by the plan if both of the following conditions are met. 1. The plan you participate in is established for its employees by: a. The United States, b. A state or political subdivision of a state, or c. An instrumentality of either (a) or (b) above. 2. You didn’t serve more than 90 days on active duty during the year (not counting duty for training). Volunteer firefighters. If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. You aren’t covered by the plan if both of the following conditions are met. 1. The plan you participate in is established for its employees by: a. The United States, b. A state or political subdivision of a state, or c. An instrumentality of either (a) or (b) above. 2. Your accrued retirement benefits at the beginning of the year won’t provide more than $1,800 per year at retirement. Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. Your deduction is also affected by how much income you had and by your filing status. Your deduction may also be affected by social security benefits you received. Reduced or no deduction. If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Your deduction begins to decrease (phase out) when your income rises above a certain amount and is Publication 590-A (2025) Chapter 1 eliminated altogether when it reaches a higher amount. These amounts vary depending on your filing status. To determine if your deduction is subject to the phaseout, you must determine your modified AGI and your filing status, as explained later under Deduction Phaseout. Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. • You received social security benefits. • You received taxable compensation. • Contributions were made to your traditional IRA. • You or your spouse was covered by an employer retirement plan. Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Appendix B includes an example with filled-in worksheets to assist you. Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. Covered by a retirement plan. If you are covered by an employer retirement plan and you didn’t receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. If your spouse is covered. If you aren’t covered by an employer retirement plan, but your spouse is, and you didn’t receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. Filing status. Your filing status depends primarily on your marital status. For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying surviving spouse, or married filing separately. If you need more information on filing status, see Pub. 501, Dependents, Standard Deduction, and Filing Information. Lived apart from spouse. If you didn’t live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Modified AGI. You can use Worksheet 1-1 to figure your modified AGI. If you made contributions to your IRA for 2025 and received a distribution from your IRA in 2025, see Both contributions for 2025 and distributions in 2025, later. Traditional IRAs 13 Table 1-2. Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. IF your filing status is... AND your modified AGI is... single or head of household married filing jointly or qualifying surviving spouse married filing separately2 THEN you can take... $79,000 or less a full deduction. more than $79,000 but less than $89,000 a partial deduction. $89,000 or more no deduction. $126,000 or less a full deduction. more than $126,000 but less than $146,000 a partial deduction. $146,000 or more no deduction. less than $10,000 a partial deduction. $10,000 or more no deduction. Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), earlier. If you didn’t live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). 1 2 Table 1-3. Effect of Modified AGI1 on Deduction if You Aren’t Covered by a Retirement Plan at Work If you aren’t covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. IF your filing status is... AND your modified AGI is... THEN you can take... single, head of household, or qualifying surviving spouse any amount a full deduction. married filing jointly or separately with a spouse who isn’t covered by a plan at work any amount a full deduction. $236,000 or less a full deduction. more than $236,000 but less than $246,000 a partial deduction. $246,000 or more no deduction. less than $10,000 a partial deduction. $10,000 or more no deduction. married filing jointly with a spouse who is covered by a plan at work married filing separately with a spouse who is covered by a plan at work2 1 2 Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), earlier. You are entitled to the full deduction if you didn’t live with your spouse at any time during the year. Don’t assume that your modified AGI is the same as your compensation. Your modified AGI may inCAUTION clude income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. ! Form 1040 or 1040-SR. If you file Form 1040 or 1040-SR, refigure the amount on line 11a, the “adjusted gross income” line, without taking into account any of the following amounts. • Foreign earned income exclusion. • Foreign housing exclusion or deduction. • Exclusion of qualified savings bond interest shown on Form 8815. • Exclusion of employer-provided adoption benefits shown on Form 8839. This is your modified AGI. • IRA deduction. • Student loan interest deduction. 14 Chapter 1 Traditional IRAs Publication 590-A (2025) Form 1040-NR. If you file Form 1040-NR, refigure the amount on line 11a, the “adjusted gross income” line, without taking into account any of the following amounts. • IRA deduction. • Student loan interest deduction. • Exclusion of qualified savings bond interest shown on Form 8815. • Exclusion of employer-provided adoption benefits shown on Form 8839. This is your modified AGI. Income from IRA distributions. If you received distributions in 2025 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, your distributions are fully taxable and are included in your modified AGI. See Pub. 590-B for more information on distributions. Publication 590-A (2025) Chapter 1 Both contributions for 2025 and distributions in 2025. If all three of the following apply, any IRA distributions you received in 2025 may be partly tax free and partly taxable. • You received distributions in 2025 from one or more traditional IRAs. • You made contributions to a traditional IRA for 2025. • Some of those contributions may be nondeductible contributions. (See Nondeductible Contributions and Worksheet 1-2, later.) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. To do this, you can use Worksheet 1-1 in Pub. 590-B. If at least one of the above doesn’t apply, figure your modified AGI using Worksheet 1-1. Traditional IRAs 15 How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you didn’t receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. The Instructions for Form 1040 include a similar worksheet that you can use instead of the worksheet in this publication. If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients, earlier. Note: If you were married and both you and your spouse contributed to an IRA, figure your deduction and your spouse's deduction separately. Reporting Deductible Contributions If you file Schedule 1 (Form 1040), enter your IRA deduction on line 20 of that form. Self-employed. If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Schedule 1 (Form 1040), line 16. Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Example. You are 29 years old and single. In 2025, you were covered by a retirement plan at work. Your salary is $72,000. Your modified AGI is $90,000. You make a $7,000 IRA contribution for 2025. Because you were covered by a retirement plan and your modified AGI is above $89,000, you can’t deduct your $7,000 IRA contribution. You must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Repayment of reservist distributions. Nondeductible contributions may include repayments of qualified reservist distributions. For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Difficulty of care payments. For contributions after December 20, 2019, you are able to elect to increase the nondeductible IRA contribution limit by some or all of the amount of difficulty of care payments, which are a type of qualified foster care payment, received. If you receive difficulty of care payments, then those amounts may increase the amount of nondeductible IRA contributions you can make but not above the $7,000 IRA deductible amount ($8,000 if you are age 50 or older). The increase to the nondeductible IRA contribution limit equals the lesser of (i) the amount of difficulty of care payments excluded from gross income, or (ii) the amount by which the deductible limit for IRA contributions exceeds the amount of the taxpayer's compensation included in gross income for the tax year. Form 8606. To designate contributions as nondeductible, you must file Form 8606. You don’t have to designate a contribution as nondeductible until you file your tax return. When you file, you can even designate otherwise deductible contributions as nondeductible contributions. You must file Form 8606 to report nondeductible contributions even if you don’t have to file a tax return for the year. A Form 8606 isn’t used for the year that you make a rollover from a qualified retirement plan to a traCAUTION ditional IRA and the rollover includes nontaxable amounts. In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. See Form 8606 under Distributions Fully or Partly Taxable in Pub. 590-B. ! Worksheet 1-1. Figuring Your Modified AGI Keep for Your Records Use this worksheet to figure your modified AGI for traditional IRA purposes. 1. Enter your adjusted gross income (AGI) from Form 1040, 1040-SR, or Form 1040-NR, line 11a, figured without taking into account the amount from Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . . 2. 3. Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Enter any excludable savings bond interest from Form 8815, line 14 . . . . . . . . . . . . . . . . . . . 5. 6. Enter any excluded employer-provided adoption benefits from Form 8839, line 30 . . . . . . . . 6. 7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes . . . . . . . . . . . . 7. 16 Chapter 1 Traditional IRAs Publication 590-A (2025) Failure to report nondeductible contributions. If you don’t report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Penalty for overstatement. If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Penalty for failure to file Form 8606. You will have to pay a $50 penalty if you don’t file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Tax on earnings on nondeductible contributions. As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Cost basis. You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost baCAUTION sis) amounts. See Pub. 590-B for more information on distributions. ! Recordkeeping. There is a recordkeeping worksheet, Appendix A. Summary Record of TradiRECORDS tional IRA(s) for 2025, that you can use to keep a record of deductible and nondeductible IRA contributions. Examples—Worksheet for Reduced IRA Deduction for 2025 The following examples illustrate the use of Worksheet 1-2. Example 1. For 2025, you and your spouse file a joint return on Form 1040. You are both 39 years old. You are both employed. You are covered by your employer’s retirement plan. However, your spouse isn’t covered by their employer’s retirement plan. Your salary is $66,000, and your spouse’s salary is $51,500. You each have a traditional IRA and your combined modified AGI, which includes $9,000 interest and dividend income, is $126,500. Publication 590-A (2025) Chapter 1 Because your modified AGI is between $126,000 and $146,000 and you are covered by an employer plan, you are subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan. For 2025, you and your spouse each contributed $7,000 to your respective IRAs. Even though you file a joint return, you must figure their IRA deductions separately. You can take a deduction of only $6,825. Using Worksheet 1-2, you figure your deductible and nondeductible amounts as shown on Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2025—Example 1 Illustrated. You can choose to treat the $6,825 as either deductible or nondeductible contributions. You can either leave the $175 ($7,000 − $6,825) of nondeductible contributions in your IRA or withdraw them by April 15, 2026. You decide to treat the $6,825 as a deductible contribution and leave the $175 of nondeductible contributions in your IRA. Your spouse can treat all or part of their $7,000 contribution as either deductible or nondeductible. This is because they aren’t covered by their employer's retirement plan and your combined modified AGI isn’t between $236,000 and $246,000. Therefore, they aren’t subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan, and they don’t need to use Worksheet 1-2. Your spouse decides to treat their $7,000 IRA contribution as deductible. The IRA deductions of $6,825 and $7,000 on the joint return for you and your spouse total $13,825. Example 2. For 2025, you and your spouse file a joint return on Form 1040. You are both 39 years old. Your salary is $45,500 and you are covered by your employer's retirement plan. Your spouse had no compensation for the year and was not covered by an employer plan. You contribute $7,000 to your traditional IRA and $7,000 to your spouse's traditional IRA (a Kay Bailey Hutchison Spousal IRA). Your combined modified AGI which includes $2,000 interest and dividend income and a large capital gain from the sale of stock is $238,500. Because your combined modified AGI is $146,000 or more and you are covered by your employer's plan, you can’t deduct any of the contribution to your traditional IRA. You can either leave the $7,000 of nondeductible contributions in your IRA or withdraw them by April 15, 2026. Your spouse figures their IRA deduction as shown on Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2025—Example 2 Illustrated. Traditional IRAs 17 Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2025 Keep for Your Records (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status.) . Note. If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. IF you... are covered by an employer plan aren’t covered by an employer plan, but your spouse is covered AND your modified AGI THEN enter on is over... line 1 below... AND your filing status is... single or head of household $79,000 $89,000 married filing jointly or qualifying surviving spouse $126,000 $146,000 married filing separately $0 $10,000 married filing jointly $236,000 $246,000 married filing separately $0 $10,000 1. Enter applicable amount from table above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter your modified AGI (that of both spouses, if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . 2. Note: If line 2 is equal to or more than the amount on line 1, stop here. Your IRA contributions aren’t deductible. See Nondeductible Contributions, earlier. 3. 4. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying surviving spouse and you are covered by an employer plan), stop here. You can take a full IRA deduction for contributions of up to $7,000 ($8,000 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multiply line 3 by the percentage below that applies to you. If the result isn’t a multiple of $10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to $620.) However, if the result is less than $200, enter $200. • Married filing jointly or qualifying surviving spouse and you are covered by an 6. 7. 8. 18 employer plan, multiply line 3 by 35% (0.35) (by 40% (0.40) if you are age 50 or older). All others, multiply line 3 by 70% (0.70) (by 80% (0.80) if you are age 50 or older). ...... 4. Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible part of self-employment tax), and Schedule 1 (Form 1040), line 16 (self-employed SEP, SIMPLE, and qualified plans). If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by their traditional IRA and Roth IRA contributions for this year. If you file Form 1040, 1040-SR, or 1040-NR, don’t reduce your compensation by any losses from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Enter contributions made, or to be made, to your IRA for 2025, but don’t enter more than $7,000 ($8,000 if you are age 50 or older). If contributions are more than $7,000 ($8,000 if you are age 50 or older), see Excess Contributions, later . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller amount if you choose) here and on your Schedule 1 (Form 1040), line 20. If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Nondeductible contribution. Subtract line 7 from line 5 or line 6, whichever is smaller. Enter the result here and on line 1 of your Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. • 5. 3. Chapter 1 Traditional IRAs Publication 590-A (2025) Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2025—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status.) . Note. If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. IF you... are covered by an employer plan aren’t covered by an employer plan, but your spouse is covered AND your modified AGI THEN enter on is over... line 1 below... AND your filing status is... single or head of household $79,000 $89,000 married filing jointly or qualifying surviving spouse $126,000 $146,000 married filing separately $0 $10,000 married filing jointly $236,000 $246,000 married filing separately $0 $10,000 1. Enter applicable amount from table above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 146,000 2. Enter your modified AGI (that of both spouses, if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . 2. 126,500 3. 19,500 ...... 4. 6,825 Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible part of self-employment tax), and Schedule 1 (Form 1040), line 16 (self-employed SEP, SIMPLE, and qualified plans). If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by their traditional IRA and Roth IRA contributions for this year. If you file Form 1040, 1040-SR, or 1040-NR, don’t reduce your compensation by any losses from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 66,000 Enter contributions made, or to be made, to your IRA for 2025, but don’t enter more than $7,000 ($8,000 if you are age 50 or older). If contributions are more than $7,000 ($8,000 if you are age 50 or older), see Excess Contributions, later . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7,000 IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller amount if you choose) here and on your Schedule 1 (Form 1040), line 20. If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 6,825 Nondeductible contribution. Subtract line 7 from line 5 or line 6, whichever is smaller. Enter the result here and on line 1 of your Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 175 Note: If line 2 is equal to or more than the amount on line 1, stop here. Your IRA contributions are not deductible. See Nondeductible Contributions, earlier. 3. 4. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying surviving spouse and you are covered by an employer plan), stop here. You can take a full IRA deduction for contributions of up to $7,000 ($8,000 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multiply line 3 by the percentage below that applies to you. If the result isn’t a multiple of $10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to $620.) However, if the result is less than $200, enter $200. • Married filing jointly or qualifying surviving spouse and you are covered by an • 5. 6. 7. 8. employer plan, multiply line 3 by 35% (0.35) (by 40% (0.40) if you are age 50 or older). All others, multiply line 3 by 70% (0.70) (by 80% (0.80) if you are age 50 or older). Publication 590-A (2025) Chapter 1 Traditional IRAs 19 Worksheet 1-2. Figuring Your Reduced IRA Deduction for 2025—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status.) . Note: If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. IF you... are covered by an employer plan aren’t covered by an employer plan, but your spouse is covered AND your modified AGI THEN enter on is over... line 1 below... AND your filing status is... single or head of household $79,000 $89,000 married filing jointly or qualifying surviving spouse $126,000 $146,000 married filing separately $0 $10,000 married filing jointly $236,000 $246,000 married filing separately $0 $10,000 1. Enter applicable amount from table above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 246,000 2. Enter your modified AGI (that of both spouses, if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . 2. 238,500 3. 7,500 ...... 4. 5,250 Enter your compensation minus any deductions on Schedule 1 (Form 1040), line 15 (deductible part of self-employment tax), and Schedule 1 (Form 1040), line 16 (self-employed SEP, SIMPLE, and qualified plans). If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by their traditional IRA and Roth IRA contributions for this year. If you file Form 1040, 1040-SR, or 1040-NR, don’t reduce your compensation by any losses from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 38,500 Enter contributions made, or to be made, to your IRA for 2025, but don’t enter more than $7,000 ($8,000 if you are age 50 or older). If contributions are more than $7,000 ($8,000 if you are age 50 or older), see Excess Contributions, later . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7,000 IRA deduction. Compare lines 4, 5, and 6. Enter the smallest amount (or a smaller amount if you choose) here and on your Schedule 1 (Form 1040), line 20, whichever applies. If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 . . . . . . . . . . . . . . . . . . 7. 5,250 Nondeductible contribution. Subtract line 7 from line 5 or line 6, whichever is smaller. Enter the result here and on line 1 of your Form 8606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 1,750 Note: If line 2 is equal to or more than the amount on line 1, stop here. Your IRA contributions aren’t deductible. See Nondeductible Contributions, earlier. 3. 4. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying surviving spouse and you are covered by an employer plan), stop here. You can take a full IRA deduction for contributions of up to $7,000 ($8,000 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multiply line 3 by the percentage below that applies to you. If the result isn’t a multiple of $10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to $620.) However, if the result is less than $200, enter $200. • Married filing jointly or qualifying surviving spouse and you are covered by an • 5. 6. 7. 8. 20 employer plan, multiply line 3 by 35% (0.35) (by 40% (0.40) if you are age 50 or older). All others, multiply line 3 by 70% (0.70) (by 80% (0.80) if you are age 50 or older). Chapter 1 Traditional IRAs Publication 590-A (2025) What if You Inherit an IRA? 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. Inherited From Spouse If you inherit a traditional IRA from your spouse, you generally have the following three choices. 1. Treat it as your own IRA by designating yourself as the account owner. 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), or d. Deferred compensation plan of a state or local government (section 457 plan). 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 RMD 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. For more information, see When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B for more information on RMDs. 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 amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. See Pub. 590-B for more information. 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. More information. For more information about rollovers, required distributions, and inherited IRAs, see: • Rollovers, later, under Can You Move Retirement Plan Assets; • When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B; and • IRA Beneficiaries under When Must You Withdraw As- sets? (Required Minimum Distributions) in Pub. 590-B. Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement programs (including traditional IRAs) to a traditional IRA. You can make the following kinds of transfers. • Transfers from one trustee to another. • Rollovers. • Transfers incident to a divorce. This chapter discusses all three kinds of transfers. Transfers to Roth IRAs. Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. For more information about these transfers, see Converting From Any Traditional IRA Into a Roth IRA, later in this chapter, and Can You Move Amounts Into a Roth IRA? in chapter 2. Transfers to Roth IRAs from other retirement plans. Under certain conditions, you can move assets from a qualified retirement plan to a Roth IRA. For more information, see Can You Move Amounts Into a Roth IRA? in chapter 2. 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 Publication 590-A (2025) Chapter 1 Traditional IRAs 21 Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, isn’t a rollover. This includes the situation where the current trustee issues a check to the new trustee but gives it to you to deposit. Because there is no distribution to you, the transfer is tax free. Because it isn’t a rollover, it isn’t affected by the 1-year waiting period required between rollovers. This waiting period is discussed later under Rollover From One IRA Into Another. For information about direct transfers from retirement programs other than traditional IRAs, see Direct rollover option, later. Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan within 60 days you received the payment or distribution. The contribution to the second retirement plan is called a rollover contribution. Note: An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. Kinds of rollovers to a traditional IRA. You can roll over amounts from the following plans into a traditional IRA. • A traditional IRA. • An employer's qualified retirement plan for its employees. • A deferred compensation plan of a state or local government (section 457 plan). • A tax-sheltered annuity plan (section 403(b) plan). Also, see Table 1-4. Treatment of rollovers. You can’t deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and Reporting rollovers from employer plans. Rollover notice. A written explanation of rollover treatment must be given to you by the plan (other than an IRA) making the distribution. See Written explanation to recipients, later, for more details. Kinds of rollovers from a traditional IRA. You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. These plans include the Federal Thrift Savings Plan (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Qualified plans may, but aren’t required to, accept such rollovers. 22 Chapter 1 Tax treatment of a rollover from a traditional IRA to an eligible retirement plan other than an IRA. Ordinarily, when you have basis in your IRAs, any distribution is considered to include both nontaxable and taxable amounts. Without a special rule, the nontaxable portion of such a distribution couldn’t be rolled over. However, a special rule treats a distribution you roll over into an eligible retirement plan as including only otherwise taxable amounts if the amount you either leave in your IRAs or don’t roll over is at least equal to your basis. The effect of this special rule is to make the amount in your traditional IRAs that you can roll over to an eligible retirement plan as large as possible. Eligible retirement plans. The following are considered eligible retirement plans. • IRAs. • Qualified trusts. • Qualified employee annuity plans under section 403(a). • Deferred compensation plans of state and local governments (section 457 plans). • Tax-sheltered annuities (section 403(b) annuities). Time Limit for Making a Rollover Contribution You must generally make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Example. You received an eligible rollover distribution from your traditional IRA on June 30, 2025, that you intend to roll over to your 403(b) plan. To postpone including the distribution in your income, you must complete the rollover by August 29, 2025, the 60th day following June 30. The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, a disaster, or another event beyond your reasonable control. For exceptions to the 60-day period, see Ways to get a waiver of the 60-day rollover requirement, later. Plan loan offset. A plan loan offset is the amount your employer plan account balance is reduced, or offset, to repay a loan from the plan. How long you have to complete the rollover of a plan loan offset depends on what kind of plan loan offset you have. For tax years beginning after December 31, 2017, if you have a qualified plan loan offset, you will have until the due date (including extensions) for your tax return for the tax year in which the offset occurs to complete your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset because your employer plan terminates, or because you sever from employment. If your plan loan offset occurs for any other reason, then you have 60 days from the date the offset occurs to complete your rollover. Rollovers completed after the 60-day period. In the absence of a waiver, amounts not rolled over within the Traditional IRAs Publication 590-A (2025) Table 1-4. Rollover Chart The following chart indicates the rollovers that are permitted between various types of plans. Roll To Roth IRA1 Traditional Traditional Roth IRA2 SIMPLE SIMPLE IRA IRA Yes4 No No Traditional Yes6 IRA2 Yes4 Yes,4 10 after Yes6 after 2 2 years5 years5 Roth IRA1 Roll From Governmental 457(b) Plan (pre-tax) Yes,4 after 2 No years5 Yes7 Qualified Plan3 (pre-tax) 403(b) Plan Designated (pre-tax) Roth Account (401(k), 403(b), or 457(b)) No No No Yes Yes No Traditional Yes,6 after 2 Yes,4 after 2 Yes4 SIMPLE years5 years5 IRA Yes6 Yes,7 after 2 Yes, after 2 years5 years5 Yes, after 2 years5 No Roth SIMPLE IRA Yes,4 after 2 No years5 No Yes4 No No No No Governmental 457(b) Plan (pre-tax) Yes6 Yes Yes,10 after 2 years5 Yes,6 after 2 Yes years5 Yes Yes Yes6 8 Qualified Plan3 (pre-tax) Yes6 Yes Yes,10 after 2 years5 Yes,6 after 2 Yes7 years5 Yes Yes Yes6 8 403(b) Plan Yes6 (pre-tax) Yes Yes,10 after 2 years5 Yes,6 after 2 Yes7 years5 Yes Yes Yes6 8 Designated Yes Roth Account (401(k), 403(b), or 457(b)) No No Yes, after 2 years5 No No Yes9 No Roth IRAs include Roth IRAs that receive employer contributions from a SEP arrangement. Traditional IRAs include traditional IRAs that receive employer contributions from a SEP arrangement. 3 Qualified plans include, for example, profit-sharing, 401(k), money purchase, and defined benefit plans. 4 Only one rollover in any 12-month period. 5 After the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement under your employer’s SIMPLE IRA plan. 6 Must include in income. 7 Must have separate accounts. 8 Must be an in-plan rollover. 9 Any nontaxable amounts distributed must be rolled over by direct trustee-to-trustee transfer. 10 Applies to rollover contributions after December 18, 2015. For more information regarding retirement plans and rollovers, go to Tax Information for Retirement Plans. 1 2 60-day period don’t qualify for tax-free rollover treatment. You must treat them as a taxable distribution from either your IRA or your employer's plan. These amounts are taxable in the year distributed, even if the 60-day period expires in the next year. You may also have to pay a 10% additional tax on early distributions as discussed under Early Distributions in Pub. 590-B. Unless there is a waiver or an extension of the 60-day rollover period, any contribution you make to your IRA Publication 590-A (2025) Chapter 1 more than 60 days after the distribution is a regular contribution, not a rollover contribution. Example. You received a distribution in late December 2025 from a traditional IRA that you don’t roll over into another traditional IRA within the 60-day limit. You don’t qualify for a waiver. This distribution is taxable in 2025 even though the 60-day limit wasn’t up until 2026. Traditional IRAs 23 Ways to get a waiver of the 60-day rollover requirement. There are three ways to obtain a waiver of the 60-day rollover requirement. • You qualify for an automatic waiver. • You self-certify that you met the requirements of a waiver. • You request and receive a private letter ruling granting a waiver. How do you qualify for an automatic waiver? You qualify for an automatic waiver if all of the following apply. • The financial institution receives the funds on your be- How does the IRS determine whether to grant a waiver in a private letter ruling? In determining whether to issue a favorable letter ruling granting a waiver, the IRS will consider all of the relevant facts and circumstances, including: • Whether errors were made by the financial institution, that is, the plan administrator, or IRA trustee, issuer, or custodian; • Whether you were unable to complete the rollover within the 60-day period due to death, disability, hospitalization, incarceration, serious illness, restrictions imposed by a foreign country, or postal error; • You followed all of the procedures set by the financial • Whether you used the amount distributed; and • How much time has passed since the date of the dis- • The funds aren’t deposited into a plan or IRA within Note: The IRS can waive only the 60-day rollover requirement and not the other requirements for a valid rollover contribution. For example, the IRS can’t waive the IRA one-rollover-per-year rule. half before the end of the 60-day rollover period. institution for depositing the funds into an IRA or other eligible retirement plan within the 60-day rollover period (including giving instructions to deposit the funds into a plan or IRA). the 60-day rollover period solely because of an error on the part of the financial institution. • The funds are deposited into a plan or IRA within 1 year from the beginning of the 60-day rollover period. • It would have been a valid rollover if the financial institution had deposited the funds as instructed. If you don’t qualify for an automatic waiver, you can use the self-certification procedure to make a late rollover contribution or you can apply to the IRS for a waiver of the 60-day rollover requirement. How do you self-certify that you qualify for a waiver? Pursuant to Revenue Procedure 2020-46 in Internal Revenue Bulletin 2020-45, available at IRB 2020-45, you may make a written certification to a plan administrator or an IRA trustee that you missed the 60-day rollover contribution deadline because of one or more of the reasons listed in Revenue Procedure 2020-46. A plan administrator or an IRA trustee may rely on the certification in accepting and reporting receipt of the rollover contribution. You may make the certification by using the model letter in the appendix to the revenue procedure or by using a letter that is substantially similar. There is no IRS fee for self-certification. A copy of the certification should be kept in your files and be available if requested on audit. Note: A self-certification is not a waiver by the IRS of the 60-day rollover requirement. If the IRS subsequently audits your income tax return, it may determine that you do not qualify for a waiver, in which case you may owe additional taxes and penalties. How do you apply for a waiver and what is the fee? You can request a ruling according to the procedures outlined in Revenue Procedure 2003-16 and Revenue Procedure 2026-4. The appropriate user fee of $18,500 must accompany every request for a waiver of the 60-day rollover requirement (see the user fee chart in Appendix A of Revenue Procedure 2026-4). 24 Chapter 1 tribution. For more information on waivers of the 60-day rollover requirement, go to RetirementPlans-FAQs. Amount. The rules regarding the amount that can be rolled over within the 60-day time period also apply to the amount that can be deposited due to a waiver. For example, if you received $6,000 from your IRA, the most that you can deposit into an eligible retirement plan due to a waiver is $6,000. Extension of rollover period. If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, two special rules extend the rollover period. • The period during which the amount is a frozen deposit isn’t counted in the 60-day period. • The 60-day period can’t end earlier than 10 days after the deposit is no longer frozen. Frozen deposit. This is any deposit that can’t be withdrawn from a financial institution because of either of the following reasons. • The financial institution is bankrupt or insolvent. • The state where the institution is located restricts with- drawals because one or more financial institutions in the state are (or are about to be) bankrupt or insolvent. Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Because this is a rollover, you can’t deduct the amount that you reinvest in an IRA. Traditional IRAs Publication 590-A (2025) You may be able to treat a contribution made to TIP one type of IRA as having been made to a differ- ent type of IRA. This is called recharacterizing the contribution. See Recharacterizations in this chapter for more information. Waiting period between rollovers. Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you can’t, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. You also can’t make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Rules apply to the number of rollovers you can have with your traditional IRAs. See Application of one-rollover-per-year limitation, later. Example. You have two traditional IRAs, IRA-1 and IRA-2. In 2025, you made a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). You can’t, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. For 2025, the rollover from IRA-1 into IRA-3 prevents you from making a tax-free rollover from IRA-2 into any other traditional IRA. This is because in 2025 you are only allowed to make one rollover within a 1-year period. So, when you make a rollover from IRA-1 to IRA-3, you can’t make a rollover from IRA-2 to any other traditional IRA. Exception. An IRA distribution made from a failed financial institution by the Federal Deposit Insurance Corporation as receiver is not treated as a rollover for purposes of the one-rollover-per-year limitation, provided: 1. Neither the failed financial institution nor the depositor initiated the distribution, and 2. No financial institution has assumed the IRAs of the failed financial institution. Application of one-rollover-per-year limitation. You can make only one rollover from an IRA to another (or the same) IRA in any 1-year period regardless of the number of IRAs you own. The limit will apply by aggregating all of an individual's IRAs (whether traditional, Roth, or SIMPLE), effectively treating them as one IRA for purposes of the limit. However, trustee-to-trustee transfers between IRAs aren’t limited and rollovers from traditional IRAs to Roth IRAs (conversions) aren’t limited. Example. You have three traditional IRAs: IRA-1, IRA-2, and IRA-3. You didn’t take any distributions from your IRAs in 2025. On January 1, 2026, you took a distribution from IRA-1 and rolled it over into IRA-2 on the same day. For 2026, you can’t roll over any other 2026 IRA distribution, including a rollover distribution involving IRA-3. This wouldn’t apply to a conversion. The same property must be rolled over. If property is distributed to you from an IRA and you complete the rollPublication 590-A (2025) Chapter 1 over by contributing property to an IRA, your rollover is tax free only if the property you contribute is the same property that was distributed to you. Partial rollovers. If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). The amount you keep may be subject to the 10% additional tax on early distributions discussed later under What Acts Result in Penalties or Additional Taxes. Required distributions. Amounts that must be distributed during a particular year under the required distribution rules (discussed in Pub. 590-B) aren’t eligible for rollover treatment. Inherited IRAs. If you inherit a traditional IRA from your spouse, you can generally roll it over, or you can choose to make the inherited IRA your own as discussed earlier under What if You Inherit an IRA. Reporting rollovers from IRAs. Report any rollover from one traditional IRA to the same or another traditional IRA on Form 1040, 1040-SR, or 1040-NR, lines 4a and 4b. Enter the total amount of the distribution on Form 1040, 1040-SR, or 1040-NR, line 4a. If the total amount on Form 1040, 1040-SR, or 1040-NR, line 4a, was rolled over, enter zero on Form 1040, 1040-SR, or 1040-NR, line 4b. If the total distribution wasn't rolled over, enter the taxable portion of the part that wasn't rolled over on Form 1040, 1040-SR, or 1040-NR, line 4b. Check the box on line 4c for rollovers. See your tax return instructions. If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2026, attach a statement explaining what you did. For information on how to figure the taxable portion, see Are Distributions Taxable? in Pub. 590-B. Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): • Employer's qualified pension, profit-sharing, or stock bonus plan; • Annuity plan; • Tax-sheltered annuity plan (section 403(b) plan); or • Governmental deferred compensation plan (section 457 plan). A qualified plan is one that meets the requirements of the Internal Revenue Code. Eligible rollover distribution. Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. Traditional IRAs 25 1. An RMD (explained under When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B). • The requirement to withhold tax from the distribution if 2. A hardship distribution. • The tax treatment of any part of the distribution that 3. Any of a series of substantially equal periodic distributions paid at least once a year over: a. Your lifetime or life expectancy, b. The lifetimes or life expectancies of you and your beneficiary, or c. A period of 10 years or more. 4. Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. 5. A loan treated as a distribution because it doesn’t satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. See the discussion earlier of plan loan offsets (including qualified plan loan offsets) under Time Limit for Making a Rollover Contribution. 6. Dividends on employer securities. you roll over to a traditional IRA or another eligible retirement plan within 60 days after you receive the distribution. • Other qualified retirement plan rules, if they apply, including those for lump-sum distributions, alternate payees, and cash or deferred arrangements. • How the plan receiving the distribution differs from the plan making the distribution in its restrictions and tax consequences. The plan administrator must provide you with this written explanation no earlier than 90 days and no later than 30 days before the distribution is made. However, you can choose to have a distribution made less than 30 days after the explanation is provided as long as both of the following requirements are met. • You are given at least 30 days after the notice is provi- ded to consider whether you want to elect a direct rollover. • You are given information that clearly states that you have this 30-day period to make the decision. 7. The cost of life insurance coverage. Your rollover into a traditional IRA may include both amounts that would be taxable and amounts that wouldn’t be taxable if they were distributed to you but not rolled over. To the extent the distribution is rolled over into a traditional IRA, it isn’t includible in your income. Any nontaxable amounts that you roll over into TIP your traditional IRA become part of your basis (cost) in your IRAs. To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. See Form 8606 under Distributions Fully or Partly Taxable in Pub. 590-B. Rollover by nonspouse beneficiary. If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans listed above into a traditional IRA. You must make the rollover by a direct trustee-to-trustee transfer into an inherited IRA. You will determine your RMDs in years after you make the rollover based on whether the employee died before their required beginning date for taking distributions from the plan. For more information, see Distributions after the employee's death under Tax on Excess Accumulation in Pub. 575. Written explanation to recipients. Before making an eligible rollover distribution, the administrator of a qualified retirement plan must provide you with a written explanation. It must tell you about all of the following. • Your right to have the distribution paid tax free directly to a traditional IRA or another eligible retirement plan. 26 it isn’t paid directly to a traditional IRA or another eligible retirement plan. Chapter 1 Contact the plan administrator if you have any questions regarding this information. Withholding requirement. Generally, if an eligible rollover distribution is paid directly to you, the payer must withhold 20% of it. This applies even if you plan to roll over the distribution to a traditional IRA. You can avoid withholding by choosing the direct rollover option, discussed later. Exceptions. The payer doesn’t have to withhold from an eligible rollover distribution paid to you if either of the following conditions applies. • The distribution and all previous eligible rollover distributions you received during your tax year from the same plan (or, at the payer's option, from all your employer's plans) total less than $200. • The distribution consists solely of employer securities, plus cash of $200 or less in lieu of fractional shares. The amount withheld is part of the distribution. If you roll over less than the full amount of the distriCAUTION bution, you may have to include in your income the amount you don’t roll over. However, you can make up the amount withheld with funds from other sources. ! Other withholding rules. The 20% withholding requirement doesn’t apply to distributions that aren’t eligible rollover distributions. However, other withholding rules apply to these distributions. The rules that apply depend on whether the distribution is a periodic distribution or a nonperiodic distribution. For either of these types of distributions, you can still choose not to have tax withheld. For more information, see Pub. 505. Traditional IRAs Publication 590-A (2025) Direct rollover option. Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a traditional IRA. The plan isn’t required to give you this option if your eligible rollover distributions are expected to total less than $200 for the year. employee's elective contributions to a 401(k) plan, which aren’t deductible by the employee. If you receive a distribution from your employer's qualified plan of any part of the balance of your DECs and the earnings from them, you can roll over any part of the distribution. Withholding. If you choose the direct rollover option, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the traditional IRA. If any part is paid to you, the payer must withhold 20% of that part's taxable amount. No waiting period between rollovers. The once-a-year limit on IRA-to-IRA rollovers doesn’t apply to eligible rollover distributions from an employer plan. You can roll over more than one distribution from the same employer plan within a year. Choosing an option. Table 1-5 may help you decide which distribution option to choose. Carefully compare the effects of each option. IRA as a holding account (conduit IRA) for rollovers to other eligible plans. If you receive an eligible rollover distribution from your employer's plan, you can roll over part or all of it into one or more conduit IRAs. You can later roll over those assets into a new employer's plan. You can use a traditional IRA as a conduit IRA. You can roll over part or all of the conduit IRA to a qualified plan, even if you make regular contributions to it or add funds from sources other than your employer's plan. However, if you make regular contributions to the conduit IRA or add funds from other sources, the qualified plan into which you move funds won’t be eligible for any optional tax treatment for which it might have otherwise qualified. Table 1-5. Comparison of Payment to You Versus Direct Rollover Affected item Result of a payment to you Result of a direct rollover Withholding The payer must withhold 20% of the taxable part. There is no withholding. Additional tax If you are under age 591/2, a 10% additional tax may apply to the taxable part (including an amount equal to the tax withheld) that isn’t rolled over. There is no 10% additional tax. See Early Distributions in Pub. 590-B. When to report as income Any taxable part (including the taxable part of any amount withheld) not rolled over is income to you in the year paid. Any taxable part isn’t income to you until later distributed to you from the IRA. If you decide to roll over any part of a distribution, TIP the direct rollover option will generally be to your advantage. This is because you won’t have 20% withholding or be subject to the 10% additional tax under that option. If you have a lump-sum distribution and don’t plan to roll over any part of it, the distribution may be eligible for special tax treatment that could lower your tax for the distribution year. In that case, you may want to see Pub. 575 and Form 4972, Tax on Lump-Sum Distributions, and its instructions to determine whether your distribution qualifies for special tax treatment and, if so, to figure your tax under the special methods. You can then compare any advantages from using Form 4972 to figure your tax on the lump-sum distribution with any advantages from rolling over all or part of the distribution. However, if you roll over any part of the lump-sum distribution, you can’t use the Form 4972 special tax treatment for any part of the distribution. Contributions you made to your employer's plan. You can roll over a distribution of voluntary deductible employee contributions (DECs) you made to your employer's plan. Prior to January 1, 1987, employees could make and deduct these contributions to certain qualified employers' plans and government plans. These aren’t the same as an Publication 590-A (2025) Chapter 1 Property and cash received in a distribution. If you receive both property and cash in an eligible rollover distribution, you can roll over part or all of the property, part or all of the cash, or any combination of the two that you choose. The same property (or sales proceeds) must be rolled over. If you receive property in an eligible rollover distribution from a qualified retirement plan, you can’t keep the property and contribute cash to a traditional IRA in place of the property. You must either roll over the property or sell it and roll over the proceeds, as explained next. Sale of property received in a distribution from a qualified plan. Instead of rolling over a distribution of property other than cash, you can sell all or part of the property and roll over the amount you receive from the sale (the proceeds) into a traditional IRA. You can’t keep the property and substitute your own funds for property you received. Example. You receive a total distribution from your employer's plan consisting of $10,000 cash and $15,000 worth of property. You decide to keep the property. You can roll over to a traditional IRA the $10,000 cash received, but you can’t roll over an additional $15,000 representing the value of the property you choose not to sell. Treatment of gain or loss. If you sell the distributed property and roll over all the proceeds into a traditional IRA, no gain or loss is recognized. The sale proceeds (including any increase in value) are treated as part of the distribution and aren’t included in your gross income. Example. On September 6, you received a lump-sum distribution from your employer's retirement plan of Traditional IRAs 27 $50,000 in cash and $50,000 in stock. The stock wasn’t stock of your employer. On September 24, you sold the stock for $60,000. On October 6, you rolled over $110,000 in cash ($50,000 from the original distribution and $60,000 from the sale of stock). You don’t include the $10,000 gain from the sale of stock as part of your income because you rolled over the entire amount into a traditional IRA. Note: Special rules may apply to distributions of employer securities. For more information, see Figuring the Taxable Amount under Taxation of Nonperiodic Payments in Pub. 575. Partial rollover. If you received both cash and property, or just property, but didn’t roll over the entire distribution, see Rollovers in Pub. 575. Life insurance contract. You can’t roll over a life insurance contract from a qualified plan into a traditional IRA. Distributions received by a surviving spouse. If you receive an eligible rollover distribution (defined earlier) from your deceased spouse's eligible retirement plan (defined earlier), you can roll over part or all of it into a traditional IRA. You can also roll over all or any part of a distribution of DECs. Distributions under divorce or similar proceedings (alternate payees). If you are the spouse or former spouse of an employee and you receive a distribution from a qualified retirement plan as a result of divorce or similar proceedings, you may be able to roll over all or part of it into a traditional IRA. To qualify, the distribution must be: • One that would have been an eligible rollover distribution (defined earlier) if it had been made to the employee, and • Made under a qualified domestic relations order. Qualified domestic relations order. A domestic relations order is a judgment, decree, or order (including approval of a property settlement agreement) that is issued under the domestic relations law of a state. A “qualified domestic relations order” gives to an alternate payee (a spouse, former spouse, child, or dependent of a participant in a retirement plan) the right to receive all or part of the benefits that would be payable to a participant under the plan. The order requires certain specific information, and it can’t alter the amount or form of the benefits of the plan. Tax treatment if all of an eligible distribution isn’t rolled over. Any part of an eligible rollover distribution that you keep is taxable in the year you receive it. If you don’t roll over any of it, special rules for lump-sum distributions may apply. See Lump-Sum Distributions under Taxation of Nonperiodic Payments in Pub. 575. The 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes, doesn’t apply. Keogh plans and rollovers. If you are self-employed, you are generally treated as an employee for rollover purposes. Consequently, if you receive an eligible rollover dis28 Chapter 1 tribution from a Keogh plan (a qualified plan with at least one self-employed participant), you can roll over all or part of the distribution (including a lump-sum distribution) into a traditional IRA. For informa [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A8b844aeed862b166. Public record. Not legal advice.