What is Publication 590 from the IRS about Individual Retirement Arrangements (IRAs)?
IRS Publication 590, called “Individual Retirement Arrangements (IRAs),” is a guidebook for IRAs. The IRS put out this paper that tells you how to set up an IRA, how to contribute, how much you can contribute, how to handle distributions, and how to get tax breaks for contributions you make to IRAs.
IRS Publication 590 also discusses the fines that filers may pay if they don’t follow IRA rules correctly.
Understanding Publication 590 of the IRS: Individual Retirement Accounts (IRAs)
IRS Publication 590 talks about “individual retirement arrangements.”
PDF 590 from the IRS is split into two parts. Contributions to individual retirement plans are covered in Part A, and payments from these plans are covered in Part B. Significant changes exist between the retirement plans explained in this, like Roth IRAs and traditional IRAs, especially regarding how contributions are taxed. This is what the newspaper talks about:
- Anyone can open an IRA or a Roth IRA.
- When can you open a standard or Roth IRA?
- How to explain what a Roth IRA is
- How to set up a Roth or regular IRA
- How much money can be given?
- When people can give money
- How much can be taken away?
- Rules for passing on an IRA
- Moving money saved for retirement
- Rules for taking out assets
- Things that lead to fines or extra taxes
New information is in IRS Publication 590
A lot of the time, this rule lists new rules or laws, like those that help people affected by disasters. It named a qualified disaster tax relief provision for the 2017 tax year, for example, that covers “tax-favored withdrawals and repayments from certain retirement plans for taxpayers who suffered economic losses” because of Hurricane and Tropical Storm Harvey, as well as Hurricanes Irma and Maria and the Cal Fires.
Other things for 2017 were:
- New information about how to handle business income that isn’t tied to your IRA
- A change to the AGI cap for contributions to traditional IRAs
- A different AGI ceiling for some married people
- A change to the AGI cap for Roth IRA contributions
In 2018, the AGI limits were raised for everyone. There was also a longer rollover time for some plan loan offsets, and a notice said conversions made in 2018 or later could not be recharacterized.
Significant changes exist between the retirement plans explained in this, like Roth IRAs and traditional IRAs, especially regarding taxing contributions.
Conclusion
- Individual Retirement Accounts (IRAs) and tax rules can be found in IRS Publication 590.
- This IRS paper also tells you how to open an IRA, how much you can put in, and other things.
- Parts A and B of IRS Publication 590 discuss IRAs and getting money out of them.
