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Www irs gov com 18. Www irs gov com   Appendix This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One. Www irs gov com Model Certificate A   STATEMENT OF SUBSEQUENT SELLER     1. Www irs gov com                 Name, address, and employer identification number of seller in subsequent sale             2. Www irs gov com                 Name, address, and employer identification number of the buyer in subsequent sale             3. Www irs gov com         Date and location of subsequent sale             4. Www irs gov com         Volume and type of taxable fuel sold               The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in     connection with Seller's purchase of the taxable fuel described in this statement. Www irs gov com       Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying     schedules and statements, and, to the best of Seller's knowledge and belief, they are true, correct and complete. Www irs gov com                   Signature and date signed                   Printed or typed name of person signing this report                   Title—   Model Certificate B   FIRST TAXPAYER'S REPORT   1. Www irs gov com                     First Taxpayer's name, address and employer identification number     2. Www irs gov com                     Name, address, and employer identification number of the buyer of the taxable fuel subject to tax     3. Www irs gov com           Date and location of removal, entry, or sale       4. Www irs gov com           Volume and type of taxable fuel removed, entered or sold     5. Www irs gov com Check type of taxable event:         Removal from refinery         Entry into United States         Bulk transfer from terminal by unregistered position holder       Bulk transfer not received at an approved terminal       Sale within the bulk transfer/terminal system       Removal at the terminal rack         Removal or sale by the blender                   6. Www irs gov com           Amount of federal excise tax paid on account of the removal, entry, or sale                   The undersigned taxpayer (“Taxpayer”) has not received, and will not claim, a credit with respect to, or a refund of, the tax     on the taxable fuel to which this form relates. Www irs gov com       Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying     schedules and statements, and to the best of Taxpayer's knowledge and belief, they are true, correct and complete. Www irs gov com             Signature and date signed               Printed or typed name of person signing this report               Title     Model Certificate C   NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT                           Name, address, and employer identification number of person receiving certificate       The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered     by the Internal Revenue Service with registration number and that Registrant's registration has not     been revoked or suspended by the Internal Revenue Service. Www irs gov com                 Registrant understands that the fraudulent use of this certificate may subject Registrant and all parties making such     fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com                       Signature and date signed                         Printed or typed name of person signing                         Title of person signing                         Name of Registrant                         Employer identification number                         Address of Registrant     Model Certificate D   CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE     (To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code. Www irs gov com )                 Name, address, and employer identification number of seller       The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:       The gasoline blendstocks to which this certificate relates will not be used to produce finished gasoline. Www irs gov com       This certificate applies to the following (complete as applicable):       If this is a single purchase certificate, check here and enter:     1. Www irs gov com Invoice or delivery ticket number       2. Www irs gov com (number of gallons) of(type of gasoline blendstocks)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:     1. Www irs gov com Effective date       2. Www irs gov com Expiration date       (period not to exceed 1 year after the effective date)       3. Www irs gov com Type (or types) of gasoline blendstocks     4. Www irs gov com Buyer's account or order number         Buyer will not claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks     covered by this certificate. Www irs gov com         Buyer will provide a new certificate to the seller if any information in this certificate changes. Www irs gov com       If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a     certificate from the purchaser stating that the gasoline blendstocks will not be used to produce finished gasoline and otherwise complies with the conditions of §48. Www irs gov com 4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations. Www irs gov com       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. Www irs gov com       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Www irs gov com     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free. Www irs gov com       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com             Signature and date signed               Printed or typed name of person signing               Title of person signing               Name of Buyer               Employer identification number               Address of Buyer     Model Certificate G   CERTIFICATE OF REGISTERED FEEDSTOCK USER     (To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue Code. Www irs gov com )         (Buyer) certifies the following under penalties of perjury:       Name of buyer         Buyer is a registered feedstock user with registration number . Www irs gov com Buyer's registration has not been revoked     or suspended. Www irs gov com         The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose. Www irs gov com                 This certificate applies to percent of Buyer's purchases from (name, address, and employer     identification number of seller) as follows (complete as applicable):       1. Www irs gov com A single purchase on invoice or delivery ticket number . Www irs gov com                 2. Www irs gov com All purchases between (effective date) and (expiration date) (period not to exceed     one year after the effective date) under account or order number(s) . Www irs gov com If this certificate applies only to Buyer's     purchases for certain locations, check here and list the locations. Www irs gov com                                   If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale. Www irs gov com                 Buyer will provide a new certificate to the seller if any information in this certificate changes. Www irs gov com                 If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration. Www irs gov com                 Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of     this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com             Printed or typed name of person signing               Title of person signing               Employer identification number               Address of Buyer               Signature and date signed     Model Certificate J   CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE     (To support tax-free sales of CNG under section 4041 of the Internal Revenue Code. Www irs gov com )                                         Name, address, and employer identification number of seller                   (“Buyer”) certifies the following under penalties of perjury:     Name of buyer                     The CNG to which this certificate relates will be used in a nontaxable use. Www irs gov com       This certificate applies to the following (complete as applicable):               If this is a single purchase certificate, check here and enter:       1. Www irs gov com Invoice or delivery ticket number       2. Www irs gov com (Gasoline gallon equivalents)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:         1. Www irs gov com Effective date         2. Www irs gov com Expiration date         (period not to exceed 1 year after the effective date)         3. Www irs gov com Buyer's account or order number       Buyer will not claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates. Www irs gov com       Buyer will provide a new certificate to the seller if any information in this certificate changes. Www irs gov com       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. Www irs gov com       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Www irs gov com     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn     from a purchaser to which Buyer sells CNG tax free. Www irs gov com       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com             Printed or typed name of person signing               Title of person signing             Employer identification number               Address of Buyer               Signature and date signed     Model Certificate K   CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR     COMMERCIAL AVIATION OR NONTAXABLE USE     (To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082. Www irs gov com )           Name, address, and employer identification number of position holder       The undersigned aircraft operator (“Buyer”) hereby certifies the following under the penalties of perjury:       The kerosene for use in aviation to which this certificate relates is purchased (check one): for     use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixed-wing air ambulance uses; for use other than as a fuel in the propulsion engine of an aircraft; for the exclusive use of a qualified blood collector organization; for the exclusive use of a nonprofit educational organization; for the exclusive use of a state; for use in an aircraft owned by an aircraft museum; for use in military aircraft; or for use in commercial aviation (other than foreign trade). Www irs gov com       With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation     (other than foreign trade), Buyer's registration number is. Www irs gov com Buyer's registration has not been suspended or revoked by the Internal Revenue Service. Www irs gov com       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. Www irs gov com Invoice or delivery ticket number       2. Www irs gov com Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. Www irs gov com Effective date       2. Www irs gov com Expiration date (period not to exceed 1 year after the effective date)       3. Www irs gov com Buyer's account number       Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes. Www irs gov com       If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation     (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government. Www irs gov com       If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use     stated above, Buyer will be liable for tax. Www irs gov com       Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the     fuel purchased under this certificate was used. Www irs gov com     Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Www irs gov com     If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. Www irs gov com       The fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate     to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver L WAIVER FOR USE BY ULTIMATE PURCHASERS OF KEROSENE FOR CERTAIN USES IN AVIATION (To support vendor's claim for a credit or payment under § 6427(l)(4)(C)(i) of the Internal Revenue Code. Www irs gov com )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Www irs gov com The kerosene to which this waiver relates is purchased for — (check one):       1. Www irs gov com □ Use on a farm for farming purposes,       2. Www irs gov com □ Use in foreign trade (reciprocal benefits required for foreign registered airlines),       3. Www irs gov com □ Use in certain helicopter and fixed-wing air ambulance uses,       4. Www irs gov com □ The exclusive use of a qualified blood collector organization,       5. Www irs gov com □ The exclusive use of a nonprofit educational organization,       6. Www irs gov com □ Use in an aircraft owned by an aircraft museum,       7. Www irs gov com □ Use in military aircraft, or       8. Www irs gov com □ Use in commercial aviation (other than foreign trade). Www irs gov com     B. Www irs gov com This waiver applies to the following (complete as applicable):       This is a single purchase waiver:           1. Www irs gov com Invoice or delivery ticket number           2. Www irs gov com Number of gallons       This is a waiver covering all purchases under a specified account or order number:           1. Www irs gov com Effective date           2. Www irs gov com Expiration date (period not to exceed 1 year after the effective date)           3. Www irs gov com Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. Www irs gov com       If Buyer uses the kerosene for use in aviation to which this waiver relates for a use other than the use stated above, Buyer will be liable for tax. Www irs gov com       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the kerosene for use in aviation used in a nontaxable use. Www irs gov com       Buyer acknowledges that it has not and will not claim any credit or payment for the kerosene for use in aviation to which this waiver relates. Www irs gov com       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate M   CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL     ORGANIZATION USE     (To support vendor's claim for a credit or payment under § 6416(a)(4) of the Internal Revenue Code. Www irs gov com )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       Buyer will use the gasoline or aviation gasoline to which this certificate relates (check one):     For the exclusive use of a state or local government; or     For the exclusive use of a nonprofit educational organization. Www irs gov com       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. Www irs gov com Invoice or delivery ticket number       2. Www irs gov com Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. Www irs gov com Effective date       2. Www irs gov com Expiration date (period not to exceed 1 year after the effective date)       3. Www irs gov com Buyer's account number       Buyer will provide a new certificate to the vendor if any information in this certificate changes. Www irs gov com       Buyer understands that by signing this certificate, Buyer gives up its right to claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Www irs gov com       Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Www irs gov com       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver N   WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR     KEROSENE USED IN INTERCITY BUS TRANSPORTATION     (To support vendor's claim for a credit or payment under § 6427 of the Internal Revenue Code. Www irs gov com )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation. Www irs gov com       This waiver applies to the following (complete as applicable):     This is a single purchase waiver:       1. Www irs gov com Invoice or delivery ticket number       2. Www irs gov com Number of gallons     This is a waiver covering all purchases under a specified account or order number:       1. Www irs gov com Effective date       2. Www irs gov com Expiration date (period not to exceed 1 year after the effective date)       3. Www irs gov com Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. Www irs gov com       If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax. Www irs gov com       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the diesel fuel or kerosene used in intercity bus transportation. Www irs gov com       Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates. Www irs gov com       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate O   CERTIFICATE FOR BIODIESEL     Certificate Identification Number:     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Www irs gov com )     The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury:   1. Www irs gov com             Producer's name, address, and employer identification number (EIN)   2. Www irs gov com             Name, address, and EIN of person buying the biodiesel from Producer   3. Www irs gov com       Date and location of sale to buyer   4. Www irs gov com This certificate applies to gallons of biodiesel. Www irs gov com   5. Www irs gov com Producer certifies that the biodiesel to which this certificate relates is:       % Agri-biodiesel (derived solely from virgin oils)       % Biodiesel other than agri-biodiesel       This certificate applies to the following sale:       Invoice or delivery ticket number       Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate)       Total number of certificates issued for that invoice or delivery ticket number   6. Www irs gov com             Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)   7. Www irs gov com Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate). Www irs gov com       Producer is registered as a biodiesel producer with registration number . Www irs gov com  Producer's registration has not been suspended or revoked by the Internal Revenue Service. Www irs gov com       Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U. Www irs gov com S. Www irs gov com C. Www irs gov com 7545). Www irs gov com       Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Model Certificate P CERTIFICATE OF STATE USE (To support vendor's claim for credit or payment under section 6427 of the Internal Revenue Code. Www irs gov com )               Name, Address, and Employer Identification Number of Vendor     The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:     A. Www irs gov com Buyer will use the diesel fuel or kerosene to which this certificate relates for the exclusive use of a state or local government, or the District of Columbia. Www irs gov com     B. Www irs gov com This certificate applies to the following (complete as applicable):       1. Www irs gov com   If this is a single purchase certificate, check here □ and enter:           a. Www irs gov com Invoice or delivery ticket number           b. Www irs gov com Number of gallons       2. Www irs gov com   If this is a certificate covering all purchases under a specified account or order number, check here □  and enter:           a. Www irs gov com Effective date           b. Www irs gov com Expiration date   (period not to exceed 1 year after effective date)           c. Www irs gov com Buyer's account or order number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Www irs gov com     ▪ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a purpose other than stated in the certificate, Buyer will be liable for any tax. Www irs gov com     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this certificate relates. Www irs gov com     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate Q CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN NONEXEMPT, NONCOMMERCIAL AVIATION (To support vendor's claim for credit or payment under section 6427(l)(4)(C)(ii) of the Internal Revenue Code. Www irs gov com )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Www irs gov com The kerosene to which this certificate relates is purchased for a nonexempt use in noncommercial aviation. Www irs gov com     B. Www irs gov com This certificate applies to the following (complete as applicable):       1. Www irs gov com   If this is a single purchase certificate, check here □ and enter:           a. Www irs gov com Invoice or delivery ticket number           b. Www irs gov com Number of gallons       2. Www irs gov com   This is a certificate covering all purchases under a specified account or order number:           a. Www irs gov com Effective date           b. Www irs gov com Expiration date   (period not to exceed 1 year after effective date)           c. Www irs gov com Buyer's account number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Www irs gov com     ▪ If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer will be liable for tax. Www irs gov com     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate R CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL ORGANIZATION (To support credit card issuer's claim for credit, refund, or payment under section 6416(a)(4)(B) or section 6427(l)(5)(D) of the Internal Revenue Code. Www irs gov com )               Name, Address, and Employer Identification Number of Credit Card Issuer. Www irs gov com     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Www irs gov com Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or     B. Www irs gov com Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational organization. Www irs gov com     C. Www irs gov com This certificate applies to all purchases made with the credit card identified below during the period specified:           a. Www irs gov com Effective date of certificate           b. Www irs gov com Expiration date of certificate   (period not to exceed 2 years after effective date)           c. Www irs gov com Buyer's account number     ▪ Buyer will provide a new certificate to the credit card issuer if any information in this certificate changes. Www irs gov com     ▪ Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Www irs gov com     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Www irs gov com     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Statement S   STATEMENT OF BIODIESEL RESELLER     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Www irs gov com )     The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury:   1. Www irs gov com                   Reseller's name, address, and employer identification number (EIN)   2. Www irs gov com                   Name, address, and EIN of Reseller's buyer   3. Www irs gov com       Date and location of sale to buyer   4. Www irs gov com Volume of biodiesel sold   5. Www irs gov com Certificate Identification Number on the Certificate for Biodiesel       Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false. Www irs gov com       Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn. Www irs gov com       Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. Www irs gov com           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Prev  Up  Next   Home   More Online Publications
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Www irs gov com 2. Www irs gov com   Roth IRAs Table of Contents What's New for 2013 What's New for 2014 Reminders Introduction What Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA?How Much Can Be Contributed? When Can You Make Contributions? What if You Contribute Too Much? Can You Move Amounts Into a Roth IRA?Conversions Rollover From Employer's Plan Into a Roth IRA Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Rollover From a Roth IRA Rollover of Exxon Valdez Settlement Income Rollover of Airline Payments Are Distributions Taxable?What Are Qualified Distributions? Additional Tax on Early Distributions Ordering Rules for Distributions How Do You Figure the Taxable Part? Must You Withdraw or Use Assets?Minimum distributions. Www irs gov com Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. Www irs gov com  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. Www irs gov com 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. Www irs gov com However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Www irs gov com For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. Www irs gov com Modified AGI limit for Roth IRA contributions increased. Www irs gov com  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Www irs gov com Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Www irs gov com 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. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Www irs gov com 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-. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Www irs gov com See Can You Contribute to a Roth IRA? in this chapter. Www irs gov com Net Investment Income Tax. Www irs gov com  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Www irs gov com However, these distributions are taken into account when determining the modified adjusted gross income threshold. Www irs gov com Distributions from a nonqualified retirement plan are included in net investment income. Www irs gov com See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Www irs gov com What's New for 2014 Modified AGI limit for Roth IRA contributions increased. Www irs gov com  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. Www irs gov com Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. Www irs gov com Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2014 and your modified AGI is at least $114,000. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. Www irs gov com 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-. Www irs gov com You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Www irs gov com Reminders Deemed IRAs. Www irs gov com  For plan years beginning after 2002, a qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. Www irs gov com If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. Www irs gov com An employee's account can be treated as a traditional IRA or a Roth IRA. Www irs gov com For this purpose, a “qualified employer plan” includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), A tax-sheltered annuity plan (section 403(b) plan), and A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. Www irs gov com Designated Roth accounts. Www irs gov com  Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. Www irs gov com These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. Www irs gov com Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. Www irs gov com Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. Www irs gov com A contribution to one does not impact your eligibility to contribute to the other. Www irs gov com See Publication 575, for more information on designated Roth accounts. Www irs gov com Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. Www irs gov com Contributions not reported. Www irs gov com   You do not report Roth IRA contributions on your return. Www irs gov com What Is a Roth IRA? A Roth IRA is an individual retirement plan that, except as explained in this chapter, is subject to the rules that apply to a traditional IRA (defined next). Www irs gov com It can be either an account or an annuity. Www irs gov com Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. Www irs gov com To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. Www irs gov com A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Www irs gov com Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. Www irs gov com But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. Www irs gov com Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live. Www irs gov com Traditional IRA. Www irs gov com   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Www irs gov com Traditional IRAs are discussed in chapter 1. Www irs gov com When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. Www irs gov com However, the time for making contributions for any year is limited. Www irs gov com See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. Www irs gov com Can You Contribute to a Roth IRA? Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: $188,000 for married filing jointly or qualifying widow(er), $127,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, and $10,000 for married filing separately and you lived with your spouse at any time during the year. Www irs gov com You may be able to claim a credit for contributions to your Roth IRA. Www irs gov com For more information, see chapter 4. Www irs gov com Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. Www irs gov com Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000. Www irs gov com Compensation. Www irs gov com   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. Www irs gov com It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. Www irs gov com For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. Www irs gov com Modified AGI. Www irs gov com   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. Www irs gov com Use Worksheet 2-1 , later, to determine your modified AGI. Www irs gov com    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. Www irs gov com Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. Www irs gov com How Much Can Be Contributed? The contribution limit for Roth IRAs generally depends on whether contributions are made only to Roth IRAs or to both traditional IRAs and Roth IRAs. Www irs gov com Worksheet 2-1. Www irs gov com Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. Www irs gov com 1. Www irs gov com Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. Www irs gov com   2. Www irs gov com Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, line 11b, or Form 1040NR, line 16b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 1040A, line 12b, or Form 1040NR, line 17b) 2. Www irs gov com   3. Www irs gov com Subtract line 2 from line 1 3. Www irs gov com   4. Www irs gov com Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. Www irs gov com   5. Www irs gov com Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. Www irs gov com   6. Www irs gov com Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. Www irs gov com   7. Www irs gov com Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. Www irs gov com   8. Www irs gov com Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. Www irs gov com   9. Www irs gov com Enter any foreign housing deduction from Form 2555, line 50 9. Www irs gov com   10. Www irs gov com Enter any excludable qualified savings bond interest from Form 8815, line 14 10. Www irs gov com   11. Www irs gov com Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. Www irs gov com   12. Www irs gov com Add the amounts on lines 3 through 11 12. Www irs gov com   13. Www irs gov com Enter: $188,000 if married filing jointly or qualifying widow(er), $10,000 if married filing separately and you lived with your spouse at any time during the year, or $127,000 for all others 13. Www irs gov com   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. Www irs gov com  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. Www irs gov com       Note. Www irs gov com If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. Www irs gov com (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. Www irs gov com ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. Www irs gov com If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above. Www irs gov com Roth IRAs only. Www irs gov com   If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation. Www irs gov com   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . Www irs gov com Roth IRAs and traditional IRAs. Www irs gov com   If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. Www irs gov com Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. Www irs gov com   This means that your contribution limit is the lesser of: $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. Www irs gov com   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . Www irs gov com   Simplified employee pensions (SEPs) are discussed in Publication 560. Www irs gov com Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. Www irs gov com Repayment of reservist distributions. Www irs gov com   You can repay qualified reservist distributions even if the repayments would cause your total contributions to the Roth IRA to be more than the general limit on contributions. Www irs gov com However, the total repayments cannot be more than the amount of your distribution. Www irs gov com Note. Www irs gov com If you make repayments of qualified reservist distributions to a Roth IRA, increase your basis in the Roth IRA by the amount of the repayment. Www irs gov com For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. Www irs gov com Contribution limit reduced. Www irs gov com   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. Www irs gov com Use Table 2-1, later, to determine if this reduction applies to you. Www irs gov com Table 2-1. Www irs gov com Effect of Modified AGI on Roth IRA Contribution This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross income (modified AGI). Www irs gov com IF you have taxable compensation and your filing status is . Www irs gov com . Www irs gov com . Www irs gov com AND your modified AGI is . Www irs gov com . Www irs gov com . Www irs gov com THEN . Www irs gov com . Www irs gov com . Www irs gov com married filing jointly or  qualifying widow(er) less than $178,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Www irs gov com at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Www irs gov com $188,000 or more you cannot contribute to a Roth IRA. Www irs gov com married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Www irs gov com more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Www irs gov com $10,000 or more you cannot contribute to a Roth IRA. Www irs gov com single, head of household,  or married filing separately and you did not live with your spouse at any time during the year less than $112,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Www irs gov com at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Www irs gov com $127,000 or more you cannot contribute to a Roth IRA. Www irs gov com Figuring the reduction. Www irs gov com   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. Www irs gov com Worksheet 2-2. Www irs gov com Determining Your Reduced Roth IRA Contribution Limit Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Www irs gov com If it is, use this worksheet to determine how much it is reduced. Www irs gov com 1. Www irs gov com Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Www irs gov com   2. Www irs gov com Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Www irs gov com   3. Www irs gov com Subtract line 2 from line 1 3. Www irs gov com   4. Www irs gov com Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Www irs gov com   5. Www irs gov com Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Www irs gov com If the result is 1. Www irs gov com 000 or more, enter 1. Www irs gov com 000 5. Www irs gov com   6. Www irs gov com Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Www irs gov com   7. Www irs gov com Multiply line 5 by line 6 7. Www irs gov com   8. Www irs gov com Subtract line 7 from line 6. Www irs gov com Round the result up to the nearest $10. Www irs gov com If the result is less than $200, enter $200 8. Www irs gov com   9. Www irs gov com Enter contributions for the year to other IRAs 9. Www irs gov com   10. Www irs gov com Subtract line 9 from line 6 10. Www irs gov com   11. Www irs gov com Enter the lesser of line 8 or line 10. Www irs gov com This is your reduced Roth IRA contribution limit 11. Www irs gov com      Round your reduced contribution limit up to the nearest $10. Www irs gov com If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. Www irs gov com Example. Www irs gov com You are a 45-year-old, single individual with taxable compensation of $113,000. Www irs gov com You want to make the maximum allowable contribution to your Roth IRA for 2013. Www irs gov com Your modified AGI for 2013 is $113,000. Www irs gov com You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. Www irs gov com You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. Www irs gov com Example—Illustrated, later. Www irs gov com   Worksheet 2-2. Www irs gov com Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Www irs gov com If it is, use this worksheet to determine how much it is reduced. Www irs gov com 1. Www irs gov com Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Www irs gov com 113,000 2. Www irs gov com Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Www irs gov com 112,000 3. Www irs gov com Subtract line 2 from line 1 3. Www irs gov com 1,000 4. Www irs gov com Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Www irs gov com 15,000 5. Www irs gov com Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Www irs gov com If the result is 1. Www irs gov com 000 or more, enter 1. Www irs gov com 000 5. Www irs gov com . Www irs gov com 067 6. Www irs gov com Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Www irs gov com 5,500 7. Www irs gov com Multiply line 5 by line 6 7. Www irs gov com 369 8. Www irs gov com Subtract line 7 from line 6. Www irs gov com Round the result up to the nearest $10. Www irs gov com If the result is less than $200, enter $200 8. Www irs gov com 5,140 9. Www irs gov com Enter contributions for the year to other IRAs 9. Www irs gov com 0 10. Www irs gov com Subtract line 9 from line 6 10. Www irs gov com 5,500 11. Www irs gov com Enter the lesser of line 8 or line 10. Www irs gov com This is your reduced Roth IRA contribution limit 11. Www irs gov com 5,140 When Can You Make Contributions? You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions). Www irs gov com You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. Www irs gov com This means that most people can make contributions for 2013 by April 15, 2014. Www irs gov com What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. Www irs gov com Excess contributions. Www irs gov com   These are the contributions to your Roth IRAs for a year that equal the total of: Amounts contributed for the tax year to your Roth IRAs (other than amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement plan, as described later) that are more than your contribution limit for the year (explained earlier under How Much Can Be Contributed? ), plus Any excess contributions for the preceding year, reduced by the total of: Any distributions out of your Roth IRAs for the year, plus Your contribution limit for the year minus your contributions to all your IRAs for the year. Www irs gov com Withdrawal of excess contributions. Www irs gov com   For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. Www irs gov com This treatment only applies if any earnings on the contributions are also withdrawn. Www irs gov com The earnings are considered earned and received in the year the excess contribution was made. Www irs gov com   If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still have the contribution returned to you within 6 months of the due date of your 2013 tax return, excluding extensions. Www irs gov com If you do, file an amended return with “Filed pursuant to section 301. Www irs gov com 9100-2” written at the top. Www irs gov com Report any related earnings on the amended return and include an explanation of the withdrawal. Www irs gov com Make any other necessary changes on the amended return. Www irs gov com Applying excess contributions. Www irs gov com    If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Www irs gov com Can You Move Amounts Into a Roth IRA? You may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. Www irs gov com You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. Www irs gov com You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. Www irs gov com You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. Www irs gov com Conversions You can convert a traditional IRA to a Roth IRA. Www irs gov com The conversion is treated as a rollover, regardless of the conversion method used. Www irs gov com Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Www irs gov com However, the 1-year waiting period does not apply. Www irs gov com Conversion methods. Www irs gov com   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. Www irs gov com Rollover. Www irs gov com You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. Www irs gov com Trustee-to-trustee transfer. Www irs gov com You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. Www irs gov com Same trustee transfer. Www irs gov com If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. Www irs gov com Same trustee. Www irs gov com   Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issuing a new contract. Www irs gov com Income. Www irs gov com   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. Www irs gov com 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. Www irs gov com If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Www irs gov com See Publication 505, Tax Withholding and Estimated Tax. Www irs gov com More information. Www irs gov com   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Www irs gov com Rollover From Employer's Plan Into a Roth IRA You can roll over into a Roth 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 (including a 401(k) plan); Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). Www irs gov com Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. Www irs gov com See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Www irs gov com Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. Www irs gov com Rollover methods. Www irs gov com   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. Www irs gov com Rollover. Www irs gov com You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. Www irs gov com Since the distribution is paid directly to you, the payer generally must withhold 20% of it. Www irs gov com Direct rollover option. Www irs gov com Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a Roth IRA. Www irs gov com Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. Www irs gov com Rollover by nonspouse beneficiary. Www irs gov com   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans listed above into a Roth IRA. Www irs gov com You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. Www irs gov com   You will determine your required minimum distributions in years after you make the rollover based on whether the employee died before his or her required beginning date for taking distributions from the plan. Www irs gov com For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. Www irs gov com Income. Www irs gov com   You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. Www irs gov com You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions (after-tax contributions) to the plan that were taxable to you when paid. Www irs gov com These amounts are normally included in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA. Www irs gov com If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Www irs gov com See Publication 505, Tax Withholding and Estimated Tax. Www irs gov com For more information on eligible rollover distributions from qualified retirement plans and withholding, see Rollover From Employer's Plan Into an IRA in chapter 1. Www irs gov com Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments If you received a military death gratuity or SGLI payment with respect to a death from injury that occurred after October 6, 2001, you can contribute (roll over) all or part of the amount received to your Roth IRA. Www irs gov com The contribution is treated as a qualified rollover contribution. Www irs gov com The amount you can roll over to your Roth IRA cannot exceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. Www irs gov com Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. Www irs gov com The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. Www irs gov com The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Www irs gov com Rollover From a Roth IRA You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA. Www irs gov com Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Www irs gov com However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. Www irs gov com A rollover from a Roth IRA to an employer retirement plan is not allowed. Www irs gov com A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. Www irs gov com If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions does not change. Www irs gov com The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. Www irs gov com See What are Qualified Distributions , later. Www irs gov com Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. Www irs gov com The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. Www irs gov com Qualified settlement income that is contributed to a Roth IRA, or to a designated Roth account, will be: Included in your taxable income for the year the qualified settlement income was received, and Treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Www irs gov com For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. Www irs gov com Rollover of Airline Payments If you are a qualified airline employee (defined next), you may contribute any portion of an airline payment (defined below) you receive to a Roth IRA. Www irs gov com The contribution must be made within 180 days from the date you received the payment. Www irs gov com The contribution will be treated as a qualified rollover contribution. Www irs gov com The rollover contribution is included in income to the extent it would be included in income if it were not part of the rollover contribution. Www irs gov com Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can contribute to your Roth IRA. Www irs gov com Qualified airline employee. Www irs gov com    A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act of 2006. Www irs gov com These provisions also apply to surviving spouses of qualified airline employees. Www irs gov com Airline payment. Www irs gov com    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. Www irs gov com The payment also must be made both: Under the approval of an order of federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and In respect of the qualified airline employee’s interest in a bankruptcy claim against the airline carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. Www irs gov com Any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can roll over to your traditional IRA. Www irs gov com Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. Www irs gov com Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). Www irs gov com You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. Www irs gov com You may have to include part of other distributions in your income. Www irs gov com See Ordering Rules for Distributions , later. Www irs gov com Basis of distributed property. Www irs gov com   The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution. Www irs gov com Withdrawals of contributions by due date. Www irs gov com   If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. Www irs gov com If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. Www irs gov com The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions. Www irs gov com What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. Www irs gov com It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit). Www irs gov com Additional Tax on Early Distributions If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs. Www irs gov com Distributions of conversion and certain rollover contributions within 5-year period. Www irs gov com   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. Www irs gov com You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). Www irs gov com A separate 5-year period applies to each conversion and rollover. Www irs gov com See Ordering Rules for Distributions , later, to determine the recapture amount, if any. Www irs gov com   The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. Www irs gov com See What Are Qualified Distributions , earlier. Www irs gov com   For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a regular contribution for 2012 on the same date, the 5-year period for the conversion begins January 1, 2013, while the 5-year period for the regular contribution begins on January 1, 2012. Www irs gov com   Unless one of the exceptions listed later applies, you must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover contribution that you had to include in income because of the conversion or rollover. Www irs gov com   You must pay the 10% additional tax in the year of the distribution, even if you had included the conversion or rollover contribution in an earlier year. Www irs gov com You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. Www irs gov com Other early distributions. Www irs gov com   Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that are not qualified distributions. Www irs gov com Exceptions. Www irs gov com   You may not have to pay the 10% additional tax in the following situations. Www irs gov com You have reached age 59½. Www irs gov com You are totally and permanently disabled. Www irs gov com You are the beneficiary of a deceased IRA owner. Www irs gov com You use the distribution to buy, build, or rebuild a first home. Www irs gov com The distributions are part of a series of substantially equal payments. Www irs gov com You have unreimbursed medical expenses that are more than 10% (or 7. Www irs gov com 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. Www irs gov com You are paying medical insurance premiums during a period of unemployment. Www irs gov com The distributions are not more than your qualified higher education expenses. Www irs gov com The distribution is due to an IRS levy of the qualified plan. Www irs gov com The distribution is a qualified reservist distribution. Www irs gov com Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . Www irs gov com Please click here for the text description of the image. Www irs gov com Is Roth Distributions a Qualified Distribution? Ordering Rules for Distributions If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. Www irs gov com There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA. Www irs gov com For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). Www irs gov com Order the distributions as follows. Www irs gov com Regular contributions. Www irs gov com Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). Www irs gov com See Aggregation (grouping and adding) rules, later. Www irs gov com Take these conversion and rollover contributions into account as follows: Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the Nontaxable portion. Www irs gov com Earnings on contributions. Www irs gov com Disregard rollover contributions from other Roth IRAs for this purpose. Www irs gov com Aggregation (grouping and adding) rules. Www irs gov com   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. Www irs gov com Add all distributions from all your Roth IRAs during the year together. Www irs gov com Add all regular contributions made for the year (including contributions made after the close of the year, but before the due date of your return) together. Www irs gov com Add this total to the total undistributed regular contributions made in prior years. Www irs gov com Add all conversion and rollover contributions made during the year together. Www irs gov com For purposes of the ordering rules, in the case of any conversion or rollover in which the conversion or rollover distribution is made in 2013 and the conversion or rollover contribution is made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or rollover contributions made in 2014. Www irs gov com Add any recharacterized contributions that end up in a Roth IRA to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Www irs gov com   Disregard any recharacterized contribution that ends up in an IRA other than a Roth IRA for the purpose of grouping (aggregating) both contributions and distributions. Www irs gov com Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. Www irs gov com Example. Www irs gov com On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. Www irs gov com His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. Www irs gov com Justin included $60,000 ($80,000 − $20,000) in his gross income. Www irs gov com On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. Www irs gov com On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. Www irs gov com The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. Www irs gov com The next $2,000 of the distribution is not includible in income because it was included previously. Www irs gov com Figuring your recapture amount. Www irs gov com   If you had an early distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture Amount—Allocation Chart, later. Www irs gov com Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19   Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Www irs gov com   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Www irs gov com The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Www irs gov com Note. Www irs gov com Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Www irs gov com See the Example , earlier. Www irs gov com Tax Year Your Form 2013 Form 8606, line 20   Form 8606, line 22   1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18   Form 8606, line 17   2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Www irs gov com  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Www irs gov com Amount to include on Form 5329, line 1. Www irs gov com   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. Www irs gov com The amount you allocated to line 20 of your 2013 Form 8606. Www irs gov com The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. Www irs gov com The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. Www irs gov com The amount from your 2013 Form 8606, line 25. Www irs gov com   Also, include any amount you allocated to line 20 of your 2013 Form 8606 on your 2013 Form 5329, line 2, and enter exception number 09. Www irs gov com Example. Www irs gov com Ishmael, age 32, opened a Roth IRA in 2000. Www irs gov com He made the maximum contributions to it every year. Www irs gov com In addition, he made the following transactions into his Roth IRA. Www irs gov com In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. Www irs gov com He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. Www irs gov com He entered $0 on line 17 of Form 8606 because he took a deduction for all the contributions to the traditional IRA, therefore he has no basis. Www irs gov com He entered $10,000 on line 18 of Form 8606. Www irs gov com In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. Www irs gov com He used a 2011 Form 1040 to file his taxes. Www irs gov com He entered $20,000 on line 16a of Form 1040 because that was the amount reported in box 1 of his 2011 Form 1099-R. Www irs gov com Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. Www irs gov com He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. Www irs gov com The total balance in his Roth IRA as of January 1, 2013 was $105,000 ($50,000 in contributions from 2000 through 2012 + $10,000 from the 2005 conversion + $20,000 from the 2011 rollover + $25,000 from earnings). Www irs gov com He has not taken any early distribution from his Roth IRA before 2013. Www irs gov com In 2013, he made the maximum contribution of $5,500 to his Roth IRA. Www irs gov com In August of 2013, he took a $85,500 early distribution from his Roth IRA to use as a down payment on the purchase of his first home. Www irs gov com See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. Www irs gov com Based on his allocation, he would enter $20,000 on his 2013 Form 5329, line 1 (see Amount to include on Form 5329, line 1 , above). Www irs gov com He should also report $10,000 on his 2013 Form 5329, line 2, and enter exception 09 since that amount is not subject to the 10% additional tax on early distributions. Www irs gov com Illustrated Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19 $85,500 Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Www irs gov com   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Www irs gov com The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Www irs gov com Note. Www irs gov com Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Www irs gov com See the Example , earlier. Www irs gov com Tax Year Your Form 2013 Form 8606, line 20 $10,000 Form 8606, line 22 $55,500 1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18 $10,000 Form 8606, line 17 $-0- 2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* $10,000 Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Www irs gov com  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Www irs gov com How Do You Figure the Taxable Part? To figure the taxable part of a distribution that is not a qualified distribution, complete Form 8606, Part III. Www irs gov com Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. Www irs gov com The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. Www irs gov com However, after the death of a Roth IRA owner, certain of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs as explained later under Distributions After Owner's Death . Www irs gov com Minimum distributions. Www irs gov com   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. Www irs gov com Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. Www irs gov com See Distributions to beneficiaries , later. Www irs gov com Recognizing Losses on Investments If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less than your unrecovered basis. Www irs gov com Your basis is the total amount of contributions in your Roth IRAs. Www irs gov com You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions on Schedule A (Form 1040). Www irs gov com Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. Www irs gov com Distributions After Owner's Death If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date. Www irs gov com See When Can You Withdraw or Use Assets? in chapter 1. Www irs gov com Distributions to beneficiaries. Www irs gov com   Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary. Www irs gov com (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. Www irs gov com )   If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. Www irs gov com Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. Www irs gov com   If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70½ or treat the Roth IRA as his or her own. Www irs gov com Combining with other Roth IRAs. Www irs gov com   A beneficiary can combine an inherited Roth IRA with another Roth IRA maintained by the beneficiary only if the beneficiary either: Inherited the other Roth IRA from the same decedent, or Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her own IRA. Www irs gov com Distributions that are not qualified distributions. Www irs gov com   If a distribution to a beneficiary is not a qualified distribution, it is generally includible in the beneficiary's gross income in the same manner as it would have been included in the owner's income had it been distributed to the IRA owner when he or she was alive. Www irs gov com   If the owner of a Roth IRA dies before the end of: The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit, or The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover from a qualified retirement plan to a Roth IRA, each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. Www irs gov com See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. Www irs gov com Example. Www irs gov com When Ms. Www irs gov com Hibbard died in 2013, her Roth IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and earnings of $2,000. Www irs gov com No distributions had been made from her IRA. Www irs gov com She had no basis in the conversion contribution in 2009. Www irs gov com When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. Www irs gov com Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. Www irs gov com An immediate distribution of $4,000 to each child will be treated as $1,000 from regular contributions, $2,500 from conversion contributions, and $500 from earnings. Www irs gov com In this case, because the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 2013. Www irs gov com The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner. Www irs gov com If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise tax for that year on the amount not distributed as required. Www irs gov com For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. Www irs gov com If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. Www irs gov com Prev  Up  Next   Home   More Online Publications