The new version of IRS Publication 590, Individual Retirement Arrangements (IRAs) for use in preparing 2013 tax returns, has been released by the IRS. It’s used by taxpayers and tax preparers when filing 2013 federal income tax returns.
Publication 590 discusses Traditional, Roth and SIMPLE IRAs and is a helpful source of information about IRAs. It explains the rules for, among other topics, contributing to an IRA, dealing with an inherited IRA, rolling over and transferring money in and out of an IRA, and taking distributions. It also explains the taxes and penalties that apply when the rules are not followed.
In the section titled “What’s New for 2013” some of the important IRA changes are:
- The IRA contribution limit for 2013 increased from $5,000 to $5,500. If you are age 50 or older during 2013, then you can contribute an additional $1,000 for a total of $6,500. These increased limits also apply to Roth IRA contributions.
- Your ability to make Roth IRA contributions for 2013 is reduced (phased-out) if your modified adjusted gross income (MAGI) is between $178,000 - $188,000 if you’re married filing jointly ($112,000 - $127,000 if you’re single or head of household).
- If you were covered by a retirement plan at work for 2013, your Traditional IRA tax deduction is reduced (phased-out) if your MAGI is between $95,000 - $115,000 if you’re married filing jointly ($59,000 - $69,000 if you’re single or head of household).
Note that while Publication 590 has a section that discusses qualified charitable distributions (QCDs) for 2013 (i.e., tax-free direct transfers from an IRA to a charity), QCDs expired at the end of 2013.
- Joe Cicchinelli and Jared Trexler
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