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I Didn T File My 2012 Taxes

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I Didn T File My 2012 Taxes

I didn t file my 2012 taxes Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. I didn t file my 2012 taxes irs. I didn t file my 2012 taxes gov/pub596. I didn t file my 2012 taxes What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. I didn t file my 2012 taxes A tax credit usually means more money in your pocket. I didn t file my 2012 taxes It reduces the amount of tax you owe. I didn t file my 2012 taxes The EIC may also give you a refund. I didn t file my 2012 taxes Can I Claim the EIC? To claim the EIC, you must meet certain rules. I didn t file my 2012 taxes These rules are summarized in Table 1. I didn t file my 2012 taxes Table 1. I didn t file my 2012 taxes Earned Income Credit in a Nutshell First, you must meet all the rules in this column. I didn t file my 2012 taxes Second, you must meet all the rules in one of these columns, whichever applies. I didn t file my 2012 taxes Third, you must meet the rule in this column. I didn t file my 2012 taxes Chapter 1. I didn t file my 2012 taxes  Rules for Everyone Chapter 2. I didn t file my 2012 taxes  Rules If You Have a Qualifying Child Chapter 3. I didn t file my 2012 taxes  Rules If You Do Not Have a Qualifying Child Chapter 4. I didn t file my 2012 taxes  Figuring and Claiming the EIC 1. I didn t file my 2012 taxes Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. I didn t file my 2012 taxes 2. I didn t file my 2012 taxes You must have a valid social security number. I didn t file my 2012 taxes   3. I didn t file my 2012 taxes Your filing status cannot be Married filing separately. I didn t file my 2012 taxes   4. I didn t file my 2012 taxes You must be a U. I didn t file my 2012 taxes S. I didn t file my 2012 taxes citizen or resident alien all year. I didn t file my 2012 taxes   5. I didn t file my 2012 taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). I didn t file my 2012 taxes   6. I didn t file my 2012 taxes Your investment income must be $3,300 or less. I didn t file my 2012 taxes    7. I didn t file my 2012 taxes You must have earned income. I didn t file my 2012 taxes 8. I didn t file my 2012 taxes Your child must meet the relationship, age, residency, and joint return tests. I didn t file my 2012 taxes   9. I didn t file my 2012 taxes Your qualifying child cannot be used by more than one person to claim the EIC. I didn t file my 2012 taxes   10. I didn t file my 2012 taxes You cannot be a qualifying child of another person. I didn t file my 2012 taxes 11. I didn t file my 2012 taxes You must be at least age 25 but under age 65. I didn t file my 2012 taxes    12. I didn t file my 2012 taxes You cannot be the dependent of another person. I didn t file my 2012 taxes   13. I didn t file my 2012 taxes You cannot be a qualifying child of another person. I didn t file my 2012 taxes   14. I didn t file my 2012 taxes You must have lived in the United States more than half of the year. I didn t file my 2012 taxes 15. I didn t file my 2012 taxes Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. I didn t file my 2012 taxes Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. I didn t file my 2012 taxes You are one of those people if any of the following statements are true for 2013. I didn t file my 2012 taxes You are filing Schedule E (Form 1040). I didn t file my 2012 taxes You are reporting income from the rental of personal property not used in a trade or business. I didn t file my 2012 taxes You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). I didn t file my 2012 taxes You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. I didn t file my 2012 taxes If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. I didn t file my 2012 taxes You do not need this publication. I didn t file my 2012 taxes But you can read it to find out whether you can take the EIC and to learn more about the EIC. I didn t file my 2012 taxes Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). I didn t file my 2012 taxes See chapter 3. I didn t file my 2012 taxes How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. I didn t file my 2012 taxes To figure it yourself, you can complete a worksheet in the instructions for the form you file. I didn t file my 2012 taxes To find out how to have the IRS figure it for you, see chapter 4. I didn t file my 2012 taxes How Can I Quickly Locate Specific information? You can use the index to look up specific information. I didn t file my 2012 taxes In most cases, index entries will point you to headings, tables, or a worksheet. I didn t file my 2012 taxes Is There Help Online? Yes. I didn t file my 2012 taxes You can use the EITC Assistant at www. I didn t file my 2012 taxes irs. I didn t file my 2012 taxes gov/eitc to find out if you may be eligible for the credit. I didn t file my 2012 taxes The EITC Assistant is available in English and Spanish. I didn t file my 2012 taxes What's New for 2013 Earned income amount is more. I didn t file my 2012 taxes The maximum amount of income you can earn and still get the credit has increased. I didn t file my 2012 taxes You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). I didn t file my 2012 taxes Your adjusted gross income also must be less than the amount in the above list that applies to you. I didn t file my 2012 taxes For details, see Rules 1 and 15. I didn t file my 2012 taxes Investment income amount is more. I didn t file my 2012 taxes The maximum amount of investment income you can have and still get the credit has increased to $3,300. I didn t file my 2012 taxes See Rule 6—Your Investment Income Must Be $3,300 or Less . I didn t file my 2012 taxes Reminders Increased EIC on certain joint returns. I didn t file my 2012 taxes . I didn t file my 2012 taxes  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. I didn t file my 2012 taxes As a result, the EIC table has different columns for married persons filing jointly than for everyone else. I didn t file my 2012 taxes When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. I didn t file my 2012 taxes Earned income credit has no effect on certain welfare benefits. I didn t file my 2012 taxes  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. I didn t file my 2012 taxes These programs include the following. I didn t file my 2012 taxes Temporary Assistance for Needy Families (TANF). I didn t file my 2012 taxes Medicaid. I didn t file my 2012 taxes Supplemental security income (SSI). I didn t file my 2012 taxes Supplemental Nutrition Assistance Program (food stamps). I didn t file my 2012 taxes Low-income housing. I didn t file my 2012 taxes In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. I didn t file my 2012 taxes Check with your local benefit coordinator to find out if your refund will affect your benefits. I didn t file my 2012 taxes Do not overlook your state credit. I didn t file my 2012 taxes  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. I didn t file my 2012 taxes For a list of states that offer a state EIC, go to www. I didn t file my 2012 taxes irs. I didn t file my 2012 taxes gov/eitc. I didn t file my 2012 taxes EIC questioned by IRS. I didn t file my 2012 taxes  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. I didn t file my 2012 taxes We will tell you what documents to send us. I didn t file my 2012 taxes These may include: birth certificates, school records, etc. I didn t file my 2012 taxes The process of establishing your eligibility will delay your refund. I didn t file my 2012 taxes Spanish version of Publication 596. I didn t file my 2012 taxes  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. I didn t file my 2012 taxes It is a Spanish translation of Publication 596. I didn t file my 2012 taxes See How To Get Tax Help to find out how to order this and other IRS forms and publications. I didn t file my 2012 taxes Photographs of missing children. I didn t file my 2012 taxes  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. I didn t file my 2012 taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. I didn t file my 2012 taxes 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. I didn t file my 2012 taxes Comments and suggestions. I didn t file my 2012 taxes  We welcome your comments about this publication and your suggestions for future editions. I didn t file my 2012 taxes You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. I didn t file my 2012 taxes NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. I didn t file my 2012 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. I didn t file my 2012 taxes You can send your comments from www. I didn t file my 2012 taxes irs. I didn t file my 2012 taxes gov/formspubs/. I didn t file my 2012 taxes Click on “More Information” and then on “Comment on Tax Forms and Publications. I didn t file my 2012 taxes ” 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. I didn t file my 2012 taxes Ordering forms and publications. I didn t file my 2012 taxes  Visit www. I didn t file my 2012 taxes irs. I didn t file my 2012 taxes 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. I didn t file my 2012 taxes  Internal Revenue Service 1201 N. I didn t file my 2012 taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. I didn t file my 2012 taxes  If you have a tax question, check the information available on IRS. I didn t file my 2012 taxes gov or call 1-800-829-1040. I didn t file my 2012 taxes We cannot answer tax questions sent to either of the above addresses. I didn t file my 2012 taxes Prev  Up  Next   Home   More Online Publications
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I didn t file my 2012 taxes 3. I didn t file my 2012 taxes   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. I didn t file my 2012 taxes Traditional IRA mistakenly moved to SIMPLE IRA. I didn t file my 2012 taxes When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). I didn t file my 2012 taxes It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. I didn t file my 2012 taxes Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). I didn t file my 2012 taxes This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. I didn t file my 2012 taxes See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. I didn t file my 2012 taxes If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. I didn t file my 2012 taxes See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. I didn t file my 2012 taxes What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. I didn t file my 2012 taxes See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. I didn t file my 2012 taxes A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. I didn t file my 2012 taxes These contributions are called salary reduction contributions. I didn t file my 2012 taxes All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. I didn t file my 2012 taxes The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. I didn t file my 2012 taxes Contributions are made on behalf of eligible employees. I didn t file my 2012 taxes (See Eligible Employees below. I didn t file my 2012 taxes ) Contributions are also subject to various limits. I didn t file my 2012 taxes (See How Much Can Be Contributed on Your Behalf , later. I didn t file my 2012 taxes ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. I didn t file my 2012 taxes See How Are Contributions Made , later. I didn t file my 2012 taxes You may be able to claim a credit for contributions to your SIMPLE plan. I didn t file my 2012 taxes For more information, see chapter 4. I didn t file my 2012 taxes Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. I didn t file my 2012 taxes Self-employed individual. I didn t file my 2012 taxes   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. I didn t file my 2012 taxes Excludable employees. I didn t file my 2012 taxes   Your employer can exclude the following employees from participating in the SIMPLE plan. I didn t file my 2012 taxes Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). I didn t file my 2012 taxes Employees who are nonresident aliens and received no earned income from sources within the United States. I didn t file my 2012 taxes Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. I didn t file my 2012 taxes Compensation. I didn t file my 2012 taxes   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. I didn t file my 2012 taxes Wages, tips, and other pay from your employer that is subject to income tax withholding. I didn t file my 2012 taxes Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. I didn t file my 2012 taxes Self-employed individual compensation. I didn t file my 2012 taxes   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. I didn t file my 2012 taxes   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. I didn t file my 2012 taxes How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. I didn t file my 2012 taxes They are made on your behalf by your employer. I didn t file my 2012 taxes Your employer must also make either matching contributions or nonelective contributions. I didn t file my 2012 taxes Salary reduction contributions. I didn t file my 2012 taxes   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). I didn t file my 2012 taxes You can choose to cancel the election at any time during the year. I didn t file my 2012 taxes   Salary reduction contributions are also referred to as “elective deferrals. I didn t file my 2012 taxes ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. I didn t file my 2012 taxes Matching contributions. I didn t file my 2012 taxes   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. I didn t file my 2012 taxes See How Much Can Be Contributed on Your Behalf below. I didn t file my 2012 taxes These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. I didn t file my 2012 taxes These contributions are referred to as matching contributions. I didn t file my 2012 taxes   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. I didn t file my 2012 taxes Nonelective contributions. I didn t file my 2012 taxes   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. I didn t file my 2012 taxes These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. I didn t file my 2012 taxes   One of the requirements your employer must satisfy is notifying the employees that the election was made. I didn t file my 2012 taxes For other requirements that your employer must satisfy, see chapter 3 of Publication 560. I didn t file my 2012 taxes How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. I didn t file my 2012 taxes Salary reduction contributions limit. I didn t file my 2012 taxes   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. I didn t file my 2012 taxes The limitation remains at $12,000 for 2014. I didn t file my 2012 taxes If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. I didn t file my 2012 taxes You, not your employer, are responsible for monitoring compliance with these limits. I didn t file my 2012 taxes Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. I didn t file my 2012 taxes The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. I didn t file my 2012 taxes $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. I didn t file my 2012 taxes The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. I didn t file my 2012 taxes The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. I didn t file my 2012 taxes Matching employer contributions limit. I didn t file my 2012 taxes   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. I didn t file my 2012 taxes These matching contributions cannot be more than 3% of your compensation for the calendar year. I didn t file my 2012 taxes See Matching contributions less than 3% below. I didn t file my 2012 taxes Example 1. I didn t file my 2012 taxes In 2013, Joshua was a participant in his employer's SIMPLE plan. I didn t file my 2012 taxes His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). I didn t file my 2012 taxes Instead of taking it all in cash, Joshua elected to have 12. I didn t file my 2012 taxes 5% of his weekly pay ($100) contributed to his SIMPLE IRA. I didn t file my 2012 taxes For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. I didn t file my 2012 taxes Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. I didn t file my 2012 taxes Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). I didn t file my 2012 taxes Example 2. I didn t file my 2012 taxes Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. I didn t file my 2012 taxes 94% of his weekly pay contributed to his SIMPLE IRA. I didn t file my 2012 taxes In this example, Joshua's salary reduction contributions for the year (2. I didn t file my 2012 taxes 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). I didn t file my 2012 taxes Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. I didn t file my 2012 taxes In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. I didn t file my 2012 taxes Matching contributions less than 3%. I didn t file my 2012 taxes   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. I didn t file my 2012 taxes   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. I didn t file my 2012 taxes If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. I didn t file my 2012 taxes Nonelective employer contributions limit. I didn t file my 2012 taxes   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. I didn t file my 2012 taxes For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. I didn t file my 2012 taxes   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. I didn t file my 2012 taxes Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. I didn t file my 2012 taxes This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. I didn t file my 2012 taxes Example 3. I didn t file my 2012 taxes Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. I didn t file my 2012 taxes Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. I didn t file my 2012 taxes In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). I didn t file my 2012 taxes Traditional IRA mistakenly moved to SIMPLE IRA. I didn t file my 2012 taxes   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. I didn t file my 2012 taxes For more information, see Recharacterizations in chapter 1. I didn t file my 2012 taxes Recharacterizing employer contributions. I didn t file my 2012 taxes   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. I didn t file my 2012 taxes SEPs are discussed in chapter 2 of Publication 560. I didn t file my 2012 taxes SIMPLE plans are discussed in this chapter. I didn t file my 2012 taxes Converting from a SIMPLE IRA. I didn t file my 2012 taxes   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . I didn t file my 2012 taxes    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. I didn t file my 2012 taxes When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. I didn t file my 2012 taxes These rules are discussed in chapter 1. I didn t file my 2012 taxes Your employer cannot restrict you from taking distributions from a SIMPLE IRA. I didn t file my 2012 taxes Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. I didn t file my 2012 taxes If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. I didn t file my 2012 taxes See Additional Tax on Early Distributions, later. I didn t file my 2012 taxes Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. I didn t file my 2012 taxes Two-year rule. I didn t file my 2012 taxes   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. I didn t file my 2012 taxes The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. I didn t file my 2012 taxes   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). I didn t file my 2012 taxes Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. I didn t file my 2012 taxes If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. I didn t file my 2012 taxes If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. I didn t file my 2012 taxes Prev  Up  Next   Home   More Online Publications