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File 2009 Taxes Online

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File 2009 Taxes Online

File 2009 taxes online Publication 939 - Introductory Material Table of Contents What's New Future developments. File 2009 taxes online IntroductionSimplified Method. File 2009 taxes online Ordering forms and publications. File 2009 taxes online Tax questions. File 2009 taxes online Useful Items - You may want to see: What's New Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). File 2009 taxes online For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. File 2009 taxes online Future developments. File 2009 taxes online For the latest information about developments related to Publication 939, such as legislation enacted after it was published, go to www. File 2009 taxes online IRS. File 2009 taxes online gov/pub939. File 2009 taxes online Introduction This publication gives you the information you need to determine the tax treatment of your pension and annuity income under the General Rule. File 2009 taxes online Generally, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your net cost, and the taxable balance. File 2009 taxes online What is the General Rule. File 2009 taxes online   The General Rule is one of the two methods used to figure the tax-free part of each annuity payment based on the ratio of your investment in the contract to the total expected return. File 2009 taxes online The other method is the Simplified Method, which is discussed in Publication 575, Pension and Annuity Income. File 2009 taxes online Who must use the General Rule. File 2009 taxes online   Use this publication if you receive pension or annuity payments from: A nonqualified plan (for example, a private annuity, a purchased commercial annuity, or a nonqualified employee plan), A qualified plan if: Your annuity starting date is before November 19, 1996 (and after July 1, 1986), and you do not qualify to use, or did not choose to use, the Simplified Method, or Your annuity starting date is after November 18, 1996, and as of that date you are age 75 or over and the annuity payments are guaranteed for at least 5 years. File 2009 taxes online If your annuity starting date was between July 1, 1986 and November 19, 1996, you were able to elect to use the Simplified Method or the General Rule. File 2009 taxes online This choice is irrevocable and applied to all later annuity payments. File 2009 taxes online The following are qualified plans. File 2009 taxes online A qualified employee plan. File 2009 taxes online A qualified employee annuity. File 2009 taxes online A tax-sheltered annuity (TSA) plan or contract. File 2009 taxes online Simplified Method. File 2009 taxes online   If you receive pension or annuity payments from a qualified plan and you are not required to use the General Rule, you must use the Simplified Method to determine the tax-free part of each annuity payment. File 2009 taxes online This method is described in Publication 575, Pension and Annuity Income. File 2009 taxes online   Also, if, at the time the annuity payments began, you were at least age 75 and were entitled to annuity payments from a qualified plan with fewer than 5 years of guaranteed payments, you must use the Simplified Method. File 2009 taxes online Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). File 2009 taxes online For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. File 2009 taxes online Topics not covered in this publication. File 2009 taxes online   Certain topics related to pensions and annuities are not covered in this publication. File 2009 taxes online They include: Simplified Method. File 2009 taxes online This method is covered in Publication 575. File 2009 taxes online That publication also covers nonperiodic payments (amounts not received as an annuity) from a qualified pension or annuity plan, rollovers, special averaging and capital gain treatment of lump-sum distributions, and special additional taxes on early distributions, excess distributions, and excess accumulations (not making required minimum distributions). File 2009 taxes online Individual retirement arrangements (IRAs). File 2009 taxes online Information on the tax treatment of amounts you receive from an IRA is included in Publication 590, Individual Retirement Arrangements (IRAs). File 2009 taxes online Life insurance payments. File 2009 taxes online If you receive life insurance payments because of the death of the insured person, get Publication 525, Taxable and Nontaxable Income, for information on the tax treatment of the proceeds. File 2009 taxes online Help from IRS. File 2009 taxes online   If, after reading this publication, you need help to figure the taxable part of your pension or annuity, the IRS can do it for you for a fee. File 2009 taxes online For information on this service, see Requesting a Ruling on Taxation of Annuity , later. File 2009 taxes online Comments and suggestions. File 2009 taxes online   We welcome your comments about this publication and your suggestions for future editions. File 2009 taxes online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. File 2009 taxes online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File 2009 taxes online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File 2009 taxes online   You can send your comments from www. File 2009 taxes online irs. File 2009 taxes online gov/formspubs/. File 2009 taxes online Click on “More Information” and then on “Comment on Tax Forms and Publications”. File 2009 taxes online   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File 2009 taxes online Ordering forms and publications. File 2009 taxes online   Visit www. File 2009 taxes online irs. File 2009 taxes online gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. File 2009 taxes online Internal Revenue Service 1201 N. File 2009 taxes online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File 2009 taxes online   If you have a tax question, check the information available on IRS. File 2009 taxes online gov or call 1-800-829-1040. File 2009 taxes online We cannot answer tax questions sent to either of the above addresses. File 2009 taxes online Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 525 Taxable and Nontaxable Income 571 Tax-Sheltered Annuity Plans (403(b) Plans) 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 721 Tax Guide to U. File 2009 taxes online S. File 2009 taxes online Civil Service Retirement Benefits 910 Guide To Free Tax Services Form (and Instructions) 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File 2009 taxes online See How To Get Tax Help near the end of this publication for information about getting these publications and forms. File 2009 taxes online Prev  Up  Next   Home   More Online Publications
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IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams

IR-2011-73, July 11, 2011

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WASHINGTON — The Internal Revenue Service today encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates.

The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.

Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities.   Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS sponsored Volunteer Income Tax Assistance partners. In other situations, identity theft is involved.

Taxpayers should be wary of any of the following:

  • Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
  • Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
  • Unfamiliar for-profit tax services teaming up with local churches.
  • Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit. 
  • Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.

In some cases non-existent Social Security refunds or rebates have been the bait used by the con artists.  In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return which results in a fraudulent return.

Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file with little or no documentation, have been appearing in community churches around the country. Promoters are targeting church congregations, exploiting their good intentions and credibility. These schemes also often spread by word of mouth among unsuspecting and well-intentioned people telling their friends and relatives. 
Promoters of these scams often prey upon low income individuals and the elderly. 

They build false hopes and charge people good money for bad advice.  In the end, the victims discover their claims are rejected or the refund barely exceeds what they paid the promoter.  Meanwhile, their money and the promoters are long gone.

Unsuspecting individuals are most likely to get caught up in scams and the IRS is warning all taxpayers, and those that help others prepare returns, to remain vigilant. If it sounds too good to be true, it probably is.

Anyone with questions about a tax credit or program should visit www.IRS.gov, call the IRS toll-free number at 800-829-1040 or visit a local IRS Taxpayer Assistance Center.

For questions about rebates, credit and benefits from other federal agencies contact the relevant agency directly for accurate information. 

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Page Last Reviewed or Updated: 19-Mar-2014

The File 2009 Taxes Online

File 2009 taxes online 17. File 2009 taxes online   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. File 2009 taxes online  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. File 2009 taxes online If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. File 2009 taxes online For more information, see How Much Can Be Contributed? later. File 2009 taxes online Roth IRA contribution limit. File 2009 taxes online  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. File 2009 taxes online If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. File 2009 taxes online However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. File 2009 taxes online For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. File 2009 taxes online Modified AGI limit for traditional IRA contributions increased. File 2009 taxes online  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. File 2009 taxes online If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. File 2009 taxes online If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. File 2009 taxes online See How Much Can You Deduct , later. File 2009 taxes online Modified AGI limit for Roth IRA contributions increased. File 2009 taxes online  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. File 2009 taxes online Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. File 2009 taxes online You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. File 2009 taxes online Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. File 2009 taxes online You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. File 2009 taxes online Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. File 2009 taxes online You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. File 2009 taxes online See Can You Contribute to a Roth IRA , later. File 2009 taxes online Net Investment Income Tax. File 2009 taxes online   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). File 2009 taxes online However, these distributions are taken into account when determining the modified adjusted gross income threshold. File 2009 taxes online Distributions from a nonqualified retirement plan are included in net investment income. File 2009 taxes online See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. File 2009 taxes online Name change. File 2009 taxes online  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. File 2009 taxes online There are no changes to the rules regarding these IRAs. File 2009 taxes online See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. File 2009 taxes online Reminders 2014 limits. File 2009 taxes online   You can find information about the 2014 contribution and AGI limits in Publication 590. File 2009 taxes online Contributions to both traditional and Roth IRAs. File 2009 taxes online   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. File 2009 taxes online Statement of required minimum distribution. File 2009 taxes online  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. File 2009 taxes online The report or offer must include the date by which the amount must be distributed. File 2009 taxes online The report is due January 31 of the year in which the minimum distribution is required. File 2009 taxes online It can be provided with the year-end fair market value statement that you normally get each year. File 2009 taxes online No report is required for IRAs of owners who have died. File 2009 taxes online IRA interest. File 2009 taxes online  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. File 2009 taxes online Tax on your traditional IRA is generally deferred until you take a distribution. File 2009 taxes online Do not report this interest on your tax return as tax-exempt interest. File 2009 taxes online Form 8606. File 2009 taxes online   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. File 2009 taxes online The term “50 or older” is used several times in this chapter. File 2009 taxes online It refers to an IRA owner who is age 50 or older by the end of the tax year. File 2009 taxes online Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. File 2009 taxes online This chapter discusses the following topics. File 2009 taxes online The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). File 2009 taxes online The Roth IRA, which features nondeductible contributions and tax-free distributions. File 2009 taxes online Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. File 2009 taxes online For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. File 2009 taxes online For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. File 2009 taxes online Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. File 2009 taxes online ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. File 2009 taxes online Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. File 2009 taxes online Who Can Open a Traditional IRA? 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, and You were not age 70½ by the end of the year. File 2009 taxes online What is compensation?   Generally, compensation is what you earn from working. File 2009 taxes online Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. File 2009 taxes online 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). File 2009 taxes online   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. File 2009 taxes online   Compensation also includes commissions and taxable alimony and separate maintenance payments. File 2009 taxes online Self-employment income. File 2009 taxes online   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. File 2009 taxes online   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. File 2009 taxes online Nontaxable combat pay. File 2009 taxes online   For IRA purposes, if you were a member of the U. File 2009 taxes online S. File 2009 taxes online Armed Forces, your compensation includes any nontaxable combat pay you receive. File 2009 taxes online What is not compensation?   Compensation does not include any of the following items. File 2009 taxes online Earnings and profits from property, such as rental income, interest income, and dividend income. File 2009 taxes online Pension or annuity income. File 2009 taxes online Deferred compensation received (compensation payments postponed from a past year). File 2009 taxes online Income from a partnership for which you do not provide services that are a material income-producing factor. File 2009 taxes online Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. File 2009 taxes online Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. File 2009 taxes online When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. File 2009 taxes online However, the time for making contributions for any year is limited. File 2009 taxes online See When Can Contributions Be Made , later. File 2009 taxes online You can open different kinds of IRAs with a variety of organizations. File 2009 taxes online You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. File 2009 taxes online You can also open an IRA through your stockbroker. File 2009 taxes online Any IRA must meet Internal Revenue Code requirements. File 2009 taxes online Kinds of traditional IRAs. File 2009 taxes online   Your traditional IRA can be an individual retirement account or annuity. File 2009 taxes online It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. File 2009 taxes online How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. File 2009 taxes online These limits and other rules are explained below. File 2009 taxes online Community property laws. File 2009 taxes online   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. File 2009 taxes online This is the rule even in states with community property laws. File 2009 taxes online Brokers' commissions. File 2009 taxes online   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. File 2009 taxes online Trustees' fees. File 2009 taxes online   Trustees' administrative fees are not subject to the contribution limit. File 2009 taxes online Qualified reservist repayments. File 2009 taxes online   If you are (or 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 you received. File 2009 taxes online 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. File 2009 taxes online 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 similar arrangement. File 2009 taxes online   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. File 2009 taxes online Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. File 2009 taxes online (See Roth IRAs, later. File 2009 taxes online ) General limit. File 2009 taxes online   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. File 2009 taxes online $5,500 ($6,500 if you are 50 or older). File 2009 taxes online Your taxable compensation (defined earlier) for the year. File 2009 taxes online 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. File 2009 taxes online (See Nondeductible Contributions , later. File 2009 taxes online ) Qualified reservist repayments do not affect this limit. File 2009 taxes online Example 1. File 2009 taxes online Betty, who is 34 years old and single, earned $24,000 in 2013. File 2009 taxes online Her IRA contributions for 2013 are limited to $5,500. File 2009 taxes online Example 2. File 2009 taxes online John, an unmarried college student working part time, earned $3,500 in 2013. File 2009 taxes online His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. File 2009 taxes online Kay Bailey Hutchison Spousal IRA limit. File 2009 taxes online   For 2013, 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 amounts. File 2009 taxes online $5,500 ($6,500 if you are 50 or older). File 2009 taxes online The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. File 2009 taxes online Your spouse's IRA contribution for the year to a traditional IRA. File 2009 taxes online Any contribution for the year to a Roth IRA on behalf of your spouse. File 2009 taxes online 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 $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). File 2009 taxes online 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). File 2009 taxes online Contributions must be in the form of money (cash, check, or money order). File 2009 taxes online Property cannot be contributed. File 2009 taxes online Contributions must be made by due date. File 2009 taxes online   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. File 2009 taxes online Age 70½ rule. File 2009 taxes online   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. File 2009 taxes online   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. File 2009 taxes online If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. File 2009 taxes online Designating year for which contribution is made. File 2009 taxes online   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. File 2009 taxes online If you do not 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). File 2009 taxes online Filing before a contribution is made. File 2009 taxes online   You can file your return claiming a traditional IRA contribution before the contribution is actually made. File 2009 taxes online Generally, the contribution must be made by the due date of your return, not including extensions. File 2009 taxes online Contributions not required. File 2009 taxes online   You do not have to contribute to your traditional IRA for every tax year, even if you can. File 2009 taxes online 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 it applies). File 2009 taxes online However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. File 2009 taxes online See Limit If Covered by Employer Plan , later. File 2009 taxes online You may be able to claim a credit for contributions to your traditional IRA. File 2009 taxes online For more information, see chapter 37. File 2009 taxes online Trustees' fees. File 2009 taxes online   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. File 2009 taxes online However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). File 2009 taxes online See chapter 28. File 2009 taxes online Brokers' commissions. File 2009 taxes online   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. File 2009 taxes online Full deduction. File 2009 taxes online   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 traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). File 2009 taxes online 100% of your compensation. File 2009 taxes online This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. File 2009 taxes online Kay Bailey Hutchison Spousal IRA. File 2009 taxes online   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 the following amounts. File 2009 taxes online $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). File 2009 taxes online The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. File 2009 taxes online The IRA deduction for the year of the spouse with the greater compensation. File 2009 taxes online Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. File 2009 taxes online Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. File 2009 taxes online This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. File 2009 taxes online Note. File 2009 taxes online If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. File 2009 taxes online After a divorce or legal separation, you can deduct only contributions to your own IRA. File 2009 taxes online Your deductions are subject to the rules for single individuals. File 2009 taxes online Covered by an employer retirement plan. File 2009 taxes online   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. File 2009 taxes online This is discussed later under Limit If Covered by Employer Plan . File 2009 taxes online Limits on the amount you can deduct do not affect the amount that can be contributed. File 2009 taxes online See Nondeductible Contributions , later. File 2009 taxes online 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. File 2009 taxes online The “Retirement plan” box should be checked if you were covered. File 2009 taxes online Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. File 2009 taxes online If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. File 2009 taxes online Federal judges. File 2009 taxes online   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. File 2009 taxes online For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. File 2009 taxes online These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. File 2009 taxes online Tax year. File 2009 taxes online   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. File 2009 taxes online For almost all people, the tax year is the calendar year. File 2009 taxes online Defined contribution plan. File 2009 taxes online   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. File 2009 taxes online   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. File 2009 taxes online Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. File 2009 taxes online Defined benefit plan. File 2009 taxes online   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. File 2009 taxes online This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. File 2009 taxes online   A defined benefit plan is any plan that is not a defined contribution plan. File 2009 taxes online Defined benefit plans include pension plans and annuity plans. File 2009 taxes online No vested interest. File 2009 taxes online   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. File 2009 taxes online Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. File 2009 taxes online Social security or railroad retirement. File 2009 taxes online   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. File 2009 taxes online Benefits from a previous employer's plan. File 2009 taxes online   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. File 2009 taxes online Reservists. File 2009 taxes online   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. File 2009 taxes online You are not covered by the plan if both of the following conditions are met. File 2009 taxes online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. File 2009 taxes online You did not serve more than 90 days on active duty during the year (not counting duty for training). File 2009 taxes online Volunteer firefighters. File 2009 taxes online   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. File 2009 taxes online You are not covered by the plan if both of the following conditions are met. File 2009 taxes online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. File 2009 taxes online Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. File 2009 taxes online Limit If Covered by Employer Plan 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. File 2009 taxes online Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. File 2009 taxes online These amounts vary depending on your filing status. File 2009 taxes online To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. File 2009 taxes online See Filing status and Modified adjusted gross income (AGI) , later. File 2009 taxes online Then use Table 17-1 or 17-2 to determine if the phaseout applies. File 2009 taxes online Social security recipients. File 2009 taxes online   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. File 2009 taxes online You received social security benefits. File 2009 taxes online You received taxable compensation. File 2009 taxes online Contributions were made to your traditional IRA. File 2009 taxes online You or your spouse was covered by an employer retirement plan. File 2009 taxes online Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. File 2009 taxes online Deduction phaseout. File 2009 taxes online   If you were covered by an employer retirement plan and you did not 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 17-1. File 2009 taxes online Table 17-1. File 2009 taxes online Effect of Modified AGI1 on Deduction if You Are Covered by 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. File 2009 taxes online IF your filing status is. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online   AND your modified AGI is. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online   THEN you can take. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online single   or  head of household   $59,000 or less   a full deduction. File 2009 taxes online   more than $59,000 but less than $69,000   a partial deduction. File 2009 taxes online   $69,000 or more   no deduction. File 2009 taxes online married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. File 2009 taxes online   more than $95,000 but less than $115,000   a partial deduction. File 2009 taxes online   $115,000 or more   no deduction. File 2009 taxes online married filing separately2   less than $10,000   a partial deduction. File 2009 taxes online   $10,000 or more   no deduction. File 2009 taxes online 1Modified AGI (adjusted gross income). File 2009 taxes online See Modified adjusted gross income (AGI) . File 2009 taxes online 2If you did not 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” column). File 2009 taxes online If your spouse is covered. File 2009 taxes online   If you are not covered by an employer retirement plan, but your spouse is, and you did not 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 17-2. File 2009 taxes online Filing status. File 2009 taxes online   Your filing status depends primarily on your marital status. File 2009 taxes online For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. File 2009 taxes online If you need more information on filing status, see chapter 2. File 2009 taxes online Lived apart from spouse. File 2009 taxes online   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. File 2009 taxes online Table 17-2. File 2009 taxes online Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. File 2009 taxes online IF your filing status is. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online   AND your modified AGI is. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online   THEN you can take. File 2009 taxes online . File 2009 taxes online . File 2009 taxes online single, head of household, or qualifying widow(er)   any amount   a full deduction. File 2009 taxes online married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. File 2009 taxes online married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. File 2009 taxes online   more than $178,000 but less than $188,000   a partial deduction. File 2009 taxes online   $188,000 or more   no deduction. File 2009 taxes online married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. File 2009 taxes online   $10,000 or more   no deduction. File 2009 taxes online 1Modified AGI (adjusted gross income). File 2009 taxes online See Modified adjusted gross income (AGI) . File 2009 taxes online 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. File 2009 taxes online Modified adjusted gross income (AGI). File 2009 taxes online   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. File 2009 taxes online If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. File 2009 taxes online You may be able to use Worksheet 17-1 to figure your modified AGI. File 2009 taxes online    Do not assume that your modified AGI is the same as your compensation. File 2009 taxes online Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. File 2009 taxes online Form 1040. File 2009 taxes online   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. File 2009 taxes online IRA deduction. File 2009 taxes online Student loan interest deduction. File 2009 taxes online Tuition and fees deduction. File 2009 taxes online Domestic production activities deduction. File 2009 taxes online Foreign earned income exclusion. File 2009 taxes online Foreign housing exclusion or deduction. File 2009 taxes online Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. File 2009 taxes online S. File 2009 taxes online Savings Bonds Issued After 1989. File 2009 taxes online Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. File 2009 taxes online This is your modified AGI. File 2009 taxes online Form 1040A. File 2009 taxes online   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File 2009 taxes online IRA deduction. File 2009 taxes online Student loan interest deduction. File 2009 taxes online Tuition and fees deduction. File 2009 taxes online Exclusion of qualified savings bond interest shown on Form 8815. File 2009 taxes online This is your modified AGI. File 2009 taxes online Both contributions for 2013 and distributions in 2013. File 2009 taxes online   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. File 2009 taxes online You received distributions in 2013 from one or more traditional IRAs. File 2009 taxes online You made contributions to a traditional IRA for 2013. File 2009 taxes online Some of those contributions may be nondeductible contributions. File 2009 taxes online If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. File 2009 taxes online To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. File 2009 taxes online   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. File 2009 taxes online    How to figure your reduced IRA deduction. File 2009 taxes online   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. File 2009 taxes online Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. File 2009 taxes online Worksheet 17-1. File 2009 taxes online Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. File 2009 taxes online 1. File 2009 taxes online Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. File 2009 taxes online   2. File 2009 taxes online Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. File 2009 taxes online   3. File 2009 taxes online Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. File 2009 taxes online   4. File 2009 taxes online Enter any domestic production activities deduction from Form 1040, line 35 4. File 2009 taxes online   5. File 2009 taxes online Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. File 2009 taxes online   6. File 2009 taxes online Enter any foreign housing deduction from Form 2555, line 50 6. File 2009 taxes online   7. File 2009 taxes online Enter any excludable savings bond interest from Form 8815, line 14 7. File 2009 taxes online   8. File 2009 taxes online Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. File 2009 taxes online   9. File 2009 taxes online Add lines 1 through 8. File 2009 taxes online This is your Modified AGI for traditional IRA purposes 9. File 2009 taxes online   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. File 2009 taxes online If you file Form 1040A, enter your IRA deduction on line 17. File 2009 taxes online You cannot deduct IRA contributions on Form 1040EZ. File 2009 taxes online Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. File 2009 taxes online The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. File 2009 taxes online Example. File 2009 taxes online Mike is 28 years old and single. File 2009 taxes online In 2013, he was covered by a retirement plan at work. File 2009 taxes online His salary was $57,312. File 2009 taxes online His modified AGI was $70,000. File 2009 taxes online Mike made a $5,500 IRA contribution for 2013. File 2009 taxes online Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. File 2009 taxes online He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. File 2009 taxes online Form 8606. File 2009 taxes online   To designate contributions as nondeductible, you must file Form 8606. File 2009 taxes online   You do not have to designate a contribution as nondeductible until you file your tax return. File 2009 taxes online When you file, you can even designate otherwise deductible contributions as nondeductible. File 2009 taxes online   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. File 2009 taxes online A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. File 2009 taxes online In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. File 2009 taxes online See Form 8606 under Distributions Fully or Partly Taxable, later. File 2009 taxes online Failure to report nondeductible contributions. File 2009 taxes online   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. File 2009 taxes online All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. File 2009 taxes online Penalty for overstatement. File 2009 taxes online   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. File 2009 taxes online Penalty for failure to file Form 8606. File 2009 taxes online   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. File 2009 taxes online    Tax on earnings on nondeductible contributions. File 2009 taxes online   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. File 2009 taxes online See When Can You Withdraw or Use IRA Assets , later. File 2009 taxes online Cost basis. File 2009 taxes online   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. File 2009 taxes online Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. File 2009 taxes online Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. File 2009 taxes online A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. File 2009 taxes online Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. File 2009 taxes online Inherited from spouse. File 2009 taxes online   If you inherit a traditional IRA from your spouse, you generally have the following three choices. File 2009 taxes online You can: Treat it as your own IRA by designating yourself as the account owner. File 2009 taxes online Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). File 2009 taxes online Treat yourself as the beneficiary rather than treating the IRA as your own. File 2009 taxes online Treating it as your own. File 2009 taxes online   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 do not take the required minimum distribution for a year as a beneficiary of the IRA. File 2009 taxes online 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. File 2009 taxes online   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 is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. File 2009 taxes online Inherited from someone other than spouse. File 2009 taxes online   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. File 2009 taxes online This means that you cannot make any contributions to the IRA. File 2009 taxes online It also means you cannot roll over any amounts into or out of the inherited IRA. File 2009 taxes online 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. File 2009 taxes online For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. File 2009 taxes online Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. File 2009 taxes online You can make the following kinds of transfers. File 2009 taxes online Transfers from one trustee to another. File 2009 taxes online Rollovers. File 2009 taxes online Transfers incident to a divorce. File 2009 taxes online Transfers to Roth IRAs. File 2009 taxes online   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. File 2009 taxes online You can also move assets from a qualified retirement plan to a Roth IRA. File 2009 taxes online See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. File 2009 taxes online 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, is not a rollover. File 2009 taxes online Because there is no distribution to you, the transfer is tax free. File 2009 taxes online Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . File 2009 taxes online For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. File 2009 taxes online Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. File 2009 taxes online The contribution to the second retirement plan is called a “rollover contribution. File 2009 taxes online ” Note. File 2009 taxes online 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. File 2009 taxes online Kinds of rollovers to a traditional IRA. File 2009 taxes online   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), or A tax-sheltered annuity plan (section 403(b) plan). File 2009 taxes online Treatment of rollovers. File 2009 taxes online   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . File 2009 taxes online Kinds of rollovers from a traditional IRA. File 2009 taxes online   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. File 2009 taxes online These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). File 2009 taxes online The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). File 2009 taxes online Qualified plans may, but are not required to, accept such rollovers. File 2009 taxes online Time limit for making a rollover contribution. File 2009 taxes online   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. File 2009 taxes online 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, disaster, or other event beyond your reasonable control. File 2009 taxes online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online Extension of rollover period. File 2009 taxes online   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, special rules extend the rollover period. File 2009 taxes online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online More information. File 2009 taxes online   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online 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. File 2009 taxes online Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. File 2009 taxes online Waiting period between rollovers. File 2009 taxes online   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. File 2009 taxes online You also cannot 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. File 2009 taxes online   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. File 2009 taxes online Example. File 2009 taxes online You have two traditional IRAs, IRA-1 and IRA-2. File 2009 taxes online You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). File 2009 taxes online You cannot, 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. File 2009 taxes online However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. File 2009 taxes online This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. File 2009 taxes online Exception. File 2009 taxes online   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online Partial rollovers. File 2009 taxes online   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. File 2009 taxes online The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). File 2009 taxes online 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? . File 2009 taxes online Required distributions. File 2009 taxes online   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. File 2009 taxes online Inherited IRAs. File 2009 taxes online   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. File 2009 taxes online See Treating it as your own , earlier. File 2009 taxes online Not inherited from spouse. File 2009 taxes online   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. File 2009 taxes online You must withdraw the IRA assets within a certain period. File 2009 taxes online For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. File 2009 taxes online Reporting rollovers from IRAs. File 2009 taxes online   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. File 2009 taxes online   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. File 2009 taxes online If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. File 2009 taxes online If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. File 2009 taxes online Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. File 2009 taxes online See your tax return instructions. File 2009 taxes online   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. File 2009 taxes online 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). File 2009 taxes online A qualified plan is one that meets the requirements of the Internal Revenue Code. File 2009 taxes online Eligible rollover distribution. File 2009 taxes online   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. File 2009 taxes online A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). File 2009 taxes online A hardship distribution. File 2009 taxes online Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. File 2009 taxes online Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. File 2009 taxes online A loan treated as a distribution because it does not 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. File 2009 taxes online Dividends on employer securities. File 2009 taxes online The cost of life insurance coverage. File 2009 taxes online Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. File 2009 taxes online To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. File 2009 taxes online See Form 8606 under Distributions Fully or Partly Taxable, later. File 2009 taxes online Rollover by nonspouse beneficiary. File 2009 taxes online   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. File 2009 taxes online The IRA is treated as an inherited IRA. File 2009 taxes online For more information about inherited IRAs, see Inherited IRAs , earlier. File 2009 taxes online Reporting rollovers from employer plans. File 2009 taxes online    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. File 2009 taxes online This amount should be shown in box 1 of Form 1099-R. File 2009 taxes online From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. File 2009 taxes online From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. File 2009 taxes online Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. File 2009 taxes online Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. File 2009 taxes online Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. File 2009 taxes online The transfer is tax free. File 2009 taxes online For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online Converting From Any Traditional IRA to a Roth IRA Allowable conversions. File 2009 taxes online   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. File 2009 taxes online The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. File 2009 taxes online If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. File 2009 taxes online However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. File 2009 taxes online Required distributions. File 2009 taxes online   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). File 2009 taxes online Income. File 2009 taxes online   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. File 2009 taxes online These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. File 2009 taxes online   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. File 2009 taxes online   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. File 2009 taxes online   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. File 2009 taxes online See chapter 4. File 2009 taxes online Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. File 2009 taxes online This is called recharacterizing the contribution. File 2009 taxes online See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. File 2009 taxes online How to recharacterize a contribution. File 2009 taxes online   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. File 2009 taxes online If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. File 2009 taxes online If you recharacterize your contribution, you must do all three of the following. File 2009 taxes online Include in the transfer any net income allocable to the contribution. File 2009 taxes online If there was a loss, the net income you must transfer may be a negative amount. File 2009 taxes online Report the recharacterization on your tax return for the year during which the contribution was made. File 2009 taxes online Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. File 2009 taxes online No deduction allowed. File 2009 taxes online   You cannot deduct the contribution to the first IRA. File 2009 taxes online Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. File 2009 taxes online Required notifications. File 2009 taxes online   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. File 2009 taxes online You must make the notifications by the date of the transfer. File 2009 taxes online Only one notification is required if both IRAs are maintained by the same trustee. File 2009 taxes online The notification(s) must include all of the following information. File 2009 taxes online The type and amount of the contribution to the first IRA that is to be recharacterized. File 2009 taxes online The date on which the contribution was made to the first IRA and the year for which it was made. File 2009 taxes online A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. File 2009 taxes online The name of the trustee of the first IRA and the name of the trustee of the second IRA. File 2009 taxes online Any additional information needed to make the transfer. File 2009 taxes online Reporting a recharacterization. File 2009 taxes online   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. File 2009 taxes online You must treat the contribution as having been made to the second IRA. File 2009 taxes online When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. File 2009 taxes online Violation of the rules generally results in additional taxes in the year of violation. File 2009 taxes online See What Acts Result in Penalties or Additional Taxes , later. File 2009 taxes online Contributions returned before the due date of return. File 2009 taxes online   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. File 2009 taxes online If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. File 2009 taxes online You can do this if, for each contribution you withdraw, both of the following conditions apply. File 2009 taxes online You did not take a deduction for the contribution. File 2009 taxes online You withdraw any interest or other income earned on the contribution. File 2009 taxes online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. File 2009 taxes online If there was a loss, the net income earned on the contribution may be a negative amount. File 2009 taxes online Note. File 2009 taxes online To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. File 2009 taxes online Earnings includible in income. File 2009 taxes online   You must include in income any earnings on the contributions you withdraw. File 2009 taxes online Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. File 2009 taxes online Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. File 2009 taxes online Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. File 2009 taxes online    Early distributions tax. File 2009 taxes online   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. File 2009 taxes online However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. File 2009 taxes online When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. File 2009 taxes online Eventually they must be distributed. File 2009 taxes online If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. File 2009 taxes online See Excess Accumulations (Insufficient Distributions) , later. File 2009 taxes online The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. File 2009 taxes online Required minimum distribution. File 2009 taxes online   The amount that must be distributed each year is referred to as the required minimum distribution. File 2009 taxes online Required distributions not eligible for rollover. File 2009 taxes online   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. File 2009 taxes online IRA owners. File 2009 taxes online   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. File 2009 taxes online April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. File 2009 taxes online Distributions by the required beginning date. File 2009 taxes online   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). File 2009 taxes online If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. File 2009 taxes online   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. File 2009 taxes online Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. File 2009 taxes online Distributions after the required beginning date. File 2009 taxes online   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. File 2009 taxes online    Beneficiaries. File 2009 taxes online   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. File 2009 taxes online More information. File 2009 taxes online   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. File 2009 taxes online Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. File 2009 taxes online Exceptions. File 2009 taxes online   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . File 2009 taxes online    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. File 2009 taxes online Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File 2009 taxes online Qualified charitable distributions (QCD). File 2009 taxes online   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. File 2009 taxes online Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. File 2009 taxes online See Qualified Charitable Distributions in Publication 590 for more information. File 2009 taxes online Ordinary income. File 2009 taxes online   Distributions from traditional IRAs that you include in income are taxed as ordinary income. File 2009 taxes online No special treatment. File 2009 taxes online   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. File 2009 taxes online Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. File 2009 taxes online Fully taxable. File 2009 taxes online   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. File 2009 taxes online Because you have no basis in your IRA, any distributions are fully taxable when received. File 2009 taxes online See Reporting taxable distributions on your return , later. File 2009 taxes online Partly taxable. File 2009 taxes online    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. File 2009 taxes online These nondeductible contributions are not taxed when they are distributed to you. File 2009 taxes online They are a return of your investment in your IRA. File 2009 taxes online   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. File 2009 taxes online If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). File 2009 taxes online Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. File 2009 taxes online Form 8606. File 2009 taxes online   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. File 2009 taxes online Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. File 2009 taxes online Note. File 2009 taxes online If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. File 2009 taxes online Send it to the IRS at the time and place you would otherwise file an income tax return. File 2009 taxes online Distributions reported on Form 1099-R. File 2009 taxes online   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File 2009 taxes online , or a similar statement. File 2009 taxes online IRA distributions are shown in boxes 1 and 2a of Form 1099-R. File 2009 taxes online A number or letter code in box 7 tells you what type of distribution you received from your IRA. File 2009 taxes online Withholding. File 2009 taxes online   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. File 2009 taxes online See chapter 4. File 2009 taxes online IRA distributions delivered outside the United States. File 2009 taxes online   In general, if you are a U. File 2009 taxes online S. File 2009 taxes online citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. File 2009 taxes online Reporting taxable distributions on your return. File 2009 taxes online    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). File 2009 taxes online If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. File 2009 taxes online You cannot report distributions on Form 1040EZ. File 2009 taxes online What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. File 2009 taxes online There are additions to the regular tax for using your IRA funds in prohibited transactions. File 2009 taxes online There are also additional taxes for the following activities. File 2009 taxes online Investing in collectibles. File 2009 taxes online Making excess contributions. File 2009 taxes online Taking early distributions. File 2009 taxes online Allowing excess amounts to accumulate (failing to take required distributions). File 2009 taxes online There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. File 2009 taxes online Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. File 2009 taxes online Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). File 2009 taxes online The following are examples of prohibited transactions with a traditional IRA. File 2009 taxes online Borrowing money from it. File 2009 taxes online Selling property to it. File 2009 taxes online Receiving unreasonable compensation for managing it. File 2009 taxes online Using it as security for a loan. File 2009 taxes online Buying property for personal use (present or future) with IRA funds. File 2009 taxes online Effect on an IRA account. File 2009 taxes online   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. File 2009 taxes online Effect on you or your beneficiary. File 2009 taxes online   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. File 2009 taxes online If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. File 2009 taxes online For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. File 2009 taxes online The distribution may be subject to additional taxes or penalties. File 2009 taxes online Taxes on prohibited transactions. File 2009 taxes online   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. File 2009 taxes online In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. File 2009 taxes online More information. File 2009 taxes online   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. File 2009 taxes online Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. File 2009 taxes online You may have to pay the 10% additional tax on early distributions, discussed later. File 2009 taxes online Collectibles. File 2009 taxes online   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. File 2009 taxes online Exception. File 2009 taxes online    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. File 2009 taxes online S. File 2009 taxes online gold coins, or one-ounce silver coins minted by the Treasury Department. File 2009 taxes online It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. File 2009 taxes online Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. File 2009 taxes online For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. File 2009 taxes online Tax on excess contributions. File 2009 taxes online   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. File 2009 taxes online You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. File 2009 taxes online The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. File 2009 taxes online Excess contributions withdrawn by due date of return. File 2009 taxes online   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. File 2009 taxes online You must complete your withdrawal by the date your tax return for that year is due, including extensions. File 2009 taxes online How to treat withdrawn contributions. File 2009 taxes online   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. File 2009 taxes online No deduction was allowed for the excess contribution. File 2009 taxes online You withdraw the interest or other income earned on the excess contribution. File 2009 taxes online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. File 2009 taxes online If there was a loss, the net income you must withdraw may be a negative amount. File 2009 taxes online How to treat withdrawn interest or other income. File 2009 taxes online   You must include in your gross income the interest or other income that was earned on the excess contribution. File 2009 taxes online Report it on your return for the year in which the excess contribution was made. File 2009 taxes online Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus