- § 5.01 Overview of Taxation of Participants in IRAs
- —–[1] Taxable Portions of IRA Distributions
- —–[2] Penalty on Premature Distributions
- —–[3] Transfers from an IRA to Another IRA or Plan
- —–[4] Transfer from an IRA to a Health Savings Account
- —–[5] Taxation of Collectibles
- —–[6] Consequences of Prohibited Transactions
- —–[7] Assignment of Rights in an IRA
- —–[8] Effect of Loans or Pledges
- —-[9] Surviving Spouse Election to Become Owner
- —-[10] Transfers Incident to Divorce or Legal Separation
- —-[11] Exempt Charitable Organization as an IRA Beneficiary
- —-[12] Income Tax Withholding
- § 5.02 Definition and Categories of IRAs
- § 5.03 Administration of IRAs
- —–[1] General Administrative Considerations
- —–[2] Investment in Collectibles by Individual Retirement Accounts
- —–[3] Prohibited Transactions of Individual Retirement Accounts
- ———-[a] Prohibited Transactions Generally
- —————[i] Terminations of Some Individual Retirement Accounts
- —————[ii] Penalty Taxes Imposed for Other IRAs
- ———-[b] Prohibited Transactions
- —————[i] Prohibited Transactions Defined
- —————[ii] Loan or Extension of Credit
- —————[iii] Property Transactions and the Furnishing of Services
- —————[iv] Use of IRA by or for a Disqualified Person
- —————[v] Dealing with an IRA for a Fiduciary’s Own Interests
- —————[vi] Payments to Fiduciary by a Third Party Dealing with IRA
- —————[vii] Ownership Threshold in Entities Involved in Transaction
- —————[viii] Form 5329 and the Statute of Limitations
- ———-[c] Transactions Excluded from Prohibited Transactions
- ———-[d] Definition of Disqualified Person
- ———-[e] Definition of Fiduciary
- ———-[f] Status of the Retiree/Owner
- —–[4] Borrowing, Pledging, or Assignment of IRA Funds
- ———-[a] Treatment of Assigned IRA Funds
- ———-[b] Individual Retirement Annuity Loans and Pledges
- ———-[c] Individual Retirement Account Loans and Pledges
- ———-[d] Bankruptcy Proceedings
- ———-[e] Borrowing Non-IRA Funds to Contribute to an IRA
- —–[5] Unrelated Business Taxable Income
- —–[6] Retiree’s Payment of IRA Expenses
- —–[7] Applicability of the “Wash Sale” Rule to IRAs
- —–[8] IRA Provisions that Place Restrictions on Distributions
- —–[9] Self-Directed IRAs
- § 5.04 Penalty on Premature IRA Distributions
- —–[1] Penalty Generally Applies in the Absence of an Exception
- ———-[a] Penalty in General
- ———-[b] The Age and Death Exceptions
- ———-[c] The Disability Exception
- ———-[d] The Substantially Equal Payment Exception
- —————[i] Substantially Equal IRA Payments Generally
- —————[ii] Substantially Equal Annuity Payments
- —————[iii] Substantially Equal Non-Annuity Payments and Safe Harbors
- —————[iv] Tailoring the Source and Amount of Payments
- —————[v] Potential IRS Relief for Erroneous Payments
- —————[vi] Modifications of Payments Triggering Penalties and Interest
- ———-[e] Exception for First-Time Homebuyers
- ———-[f] Exception for Higher Education Expenses
- ———-[g] Exception for Medical Insurance Premiums of an Unemployed Taxpayer
- ———-[h] Distributions Not Exceeding Itemized Medical Deductions
- ———-[i] Distributions to Military Reservists
- ———-[j] Qualified Birth or Adoption Distributions
- ———-[k] Emergency Personal Expense Distributions
- ———-[l] Domestic Abuse Distributions
- ———-[m] Income Attributable to Corrective Distributions of Excess Contributions to IRAs
- ———-[n] Distributions to Terminally Ill Individuals
- ———-[o] Distributions for Qualified Federally Declared Disasters
- ———-[p] Other Specific Exceptions
- ———-[q] Other Attributes of the Homebuyer, Education, and Medical Expense Exceptions
- —–[2] Other Considerations in Applying the Penalty and Exceptions
- ———-[a] Distribution of Funds Previously Rolled Over to an IRA
- ———-[b] Beneficiary Rollovers of Decedent’s IRA or Plan Funds
- ———-[c] Investments in Collectibles by IRAs
- ———-[d] Prohibited Transactions with IRAs
- ———-[e] IRA Loans and Pledges
- ———-[f] Involuntary Distributions
- ———-[g] Personal or Financial Hardship
- ———-[h] Deemed Distributions
- ———-[i] Harsher Penalty for Simple IRAs
- ———-[j] IRA Funds Transferred to an Employer Plan to Avoid the Penalty
- ———-[k] Form 5329 and the Statute of Limitations
- § 5.05 Taxation of IRA Distributions
- —–[1] General Rules for Taxation of IRA Distributions
- —–[2] Investment in IRAs
- —–[3] Nontaxable Portion of IRA Distributions
- —–[4] Timing of an IRA Distribution Relative to a Rollover from a Qualified Plan
- —–[5] Withdrawal of Excess Contributions
- —–[6] IRA Distributions Not Taxed on Separate Return of Spouse
- —–[7] Deduction of Loss on Final Distribution
- —–[8] IRA Distributions Paid Directly to Charities
- —–[9] IRA Funds Transferred to a Health Savings Account
- § 5.06 Nontaxable Rollovers to a Different IRA or Employer Plan
- —–[1] Tax-Free Rollovers of Funds in General
- —–[2] Choice of Indirect Rollover or Trustee-to-Trustee Transfer
- —–[3] Requirements for an Indirect Rollover
- ———-[a] 60-Day Requirement
- ———-[b] Potential Waiver of the 60-Day Requirement
- ———-[c] Self-Certification of Permissible Reasons for Violating the 60-Day Requirement
- ———-[d] Only One Indirect Rollover Per Year
- —–[4] Rollovers to Another IRA that Include Retiree Investment
- ———-[a] Components of a Distribution before Rollover
- ———-[b] Indirect Rollover to Another IRA
- ———-[c] Trustee-to-Trustee Rollover to Another IRA
- —–[5] Rollover within Two Years of Funds in a Simple IRA
- —–[6] Rollovers and Direct Transfers Available to Beneficiaries
- —–[7] IRA Rollovers to Qualified Retirement Plans
- ———-[a] Benefits and Requirements for IRA Rollovers to Qualified Retirement Plans
- ———-[b] Arguments for IRA Retention of Investment Unlikely to Prevail
- ———-[c] Examples Illustrating the Foregoing Discussion
- ———-[d] The Separate Treatment of IRA Distributions Rolled over to a Qualified Plan
- § 5.07 Transfers of IRAs Incident to Divorce or Legal Separation
- § 5.08 Surviving Spouse’s Election to Become Owner of IRAs
- § 5.09 Inherited IRAs
- § 5.10 Exempt Charitable Organization as an IRA Beneficiary
- § 5.11 IRA Contributions by Retirees Working Part-Time
- § 5.12 Mitigation of the Excise Tax on Excess Contributions to IRAs
- —–[1] Origins of a Retiree’s Excess Contributionsto IRAs
- —–[2] Eliminating Excess Contributions by Making Corrective Distributions
- —–[3] Eliminating Excess Contributions by Making Dollar-Limited Distributions
- —–[4] Eliminating Excess Contributions by Making Ordinary Distributions
- —–[5] Eliminating Excess Contributions by Absorption
- —–[6] Eliminating Excess Contributions by Recharacterization
- —–[7] Summary: Excess Contributions Due to Regular Contributions to Traditional IRAs
- —–[8] Summary: Excess Contributions Attributable to Failed Rollovers to Traditional IRAs
- § 5.13 Tax-Free Restorative Payments
- § 5.14 Enhancement of an Annuity Contract on Demutualization of the Issuer
- § 5.15 Applicability of Community Property Laws to IRAs
- § 5.16 Tax Withholding from IRA Distributions
- § 5.17 Tax on Net Investment Income Not Applicable
- § 5.18 Estate or Gift Tax Imposed on IRA Benefits
- § 5.18 Estate or Gift Tax Imposed on IRA Benefits
» Chapter 6 – ROTH IRAs
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Recent Tax DevelopmentsAffecting RetireesClick Here
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