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collection through the Federal Register process; for more info, click here.Department of the Treasury Contents
Internal Revenue Service
What's New for 2021 . . . . . . . . . . . . . . . . . . . . . . . . 1
What’s New for 2022 . . . . . . . . . . . . . . . . . . . . . . . 2
Publication 590-A
Cat. No. 66302J Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
DRAFT AS OF
Contributions
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Chapter 1. Traditional IRAs . . . . . . . . . . . . . . . . . . 6
Who Can Open a Traditional IRA? . . . . . . 6
to Individual
. . . . . .
When Can a Traditional IRA Be Opened? . . . . . . . 7
How Can a Traditional IRA Be Opened? . . . . . . . . 7
Retirement
October 8, 2021
How Much Can Be Contributed? . . . . . . . . . . . . . 8
When Can Contributions Be Made? . . . . . . . . . . 10
How Much Can You Deduct? . . . . . . . . . . . . . . . 10
Arrangements What if You Inherit an IRA? . . . . . . . . . . .
Can You Move Retirement Plan Assets? .
.
.
.
.
.
.
.
.
.
.
20
20
(IRAs) When Can You Withdraw or Use Assets? .
What Acts Result in Penalties or Additional
Taxes? . . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . 31
. . 30
For use in preparing Chapter 2. Roth IRAs . . . . . . . . . . . . . . . . . . . . . 37
What Is a Roth IRA? . . . . . . . . . . . . . . . 38
2021 Returns
. . . . . .
When Can a Roth IRA Be Opened? . . . . . . . . . . 38
Can You Contribute to a Roth IRA? . . . . . . . . . . 38
Can You Move Amounts Into a Roth IRA? . . . . . . 43
Chapter 3. Retirement Savings Contributions
Credit (Saver's Credit) . . . . . . . . . . . . . . . . . . 45
How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . 46
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
What's New for 2021
Modified AGI limit for traditional IRA contributions.
For 2021, if you are covered by a retirement plan at work,
your deduction for contributions to a traditional IRA is re-
duced (phased out) if your modified AGI is:
• More than $105,000 but less than $125,000 for a mar-
ried couple filing a joint return or a qualifying
widow(er),
• More than $66,000 but less than $76,000 for a single
individual or head of household, or
• Less than $10,000 for a married individual filing a sep-
arate return.
Modified AGI limit for certain married individuals.
If you are married and your spouse is covered by a retire-
ment plan at work and you aren’t, and you live with your
spouse or file a joint return, your deduction is phased out if
your modified AGI is more than $198,000 (up from
$196,000 for 2020) but less than $208,000 (up from
$206,000 for 2020). If your modified AGI is $208,000 or
more, you can’t take a deduction for contributions to a tra-
ditional IRA.
Oct 08, 2021Modified AGI limit for Roth IRA contributions. For
2021, your Roth IRA contribution limit is reduced (phased
out) in the following situations.
Reminders
• Your filing status is married filing jointly or qualifying Future developments. For the latest information about
widow(er) and your modified AGI is at least $198,000. developments related to Pub. 590-A, such as legislation
You can’t make a Roth IRA contribution if your modi- enacted after it was published, go to IRS.gov/Pub590A.
fied AGI is $208,000 or more. Divorce or separation instruments after 2018.
DRAFT AS OF
Amounts paid as alimony or separate maintenance pay-
• Your filing status is single, head of household, or mar- ments under a divorce or separation instrument executed
ried filing separately and you didn’t live with your
after 2018 won't be deductible by the payer. Such
spouse at any time in 2021 and your modified AGI is
amounts also won't be includible in the income of the re-
at least $125,000. You can’t make a Roth IRA contri-
cipient. The same is true of alimony paid under a divorce
bution if your modified AGI is $140,000 or more.
or separation instrument executed before 2019 and modi-
October 8, 2021
• Your filing status is married filing separately, you lived fied after 2018, if the modification expressly states that the
with your spouse at any time during the year, and your alimony isn't deductible to the payer or includible in the in-
modified AGI is more than zero. You can’t make a come of the recipient. For more information, see Pub. 504.
Roth IRA contribution if your modified AGI is $10,000 Qualified disaster tax relief. Special rules provide for
or more. tax-favored withdrawals and repayments from certain re-
tirement plans for taxpayers who suffered economic loss
as a result of a qualified disaster. A qualified disaster in-
What’s New for 2022 cludes a major disaster that was declared by Presidential
Declaration that is dated between January 1, 2020, and
Modified AGI limit for traditional IRA contributions in- up to February 25, 2021. However, in order to qualify un-
creased. For 2022, if you are covered by a retirement der the latest legislation, the major disaster must have an
plan at work, your deduction for contributions to a tradi- incident period beginning between December 28, 2019,
tional IRA is reduced (phased out) if your modified AGI is: and up to December 27, 2020. Also, a qualified disaster
loss does not include any disaster which has been de-
• More than $XXX,XXX but less than $XXX,XXX for a clared only by reason of COVID-19. See Form 8915-F,
married couple filing a joint return or a qualifying
widow(er), Qualified Disaster Retirement Plan Distributions and Re-
payments, for more information.
• More than $XX,XXX but less than $XX,XXX for a sin- Difficulty of care payments. You may be able to make
gle individual or head of household, or additional nondeductible IRA contributions after Decem-
• Less than $XX,XXX for a married individual filing a ber 20, 2019, if you received difficulty of care payments,
separate return. which are a type of qualified foster care payment. For
more information, see Difficulty of care payments, later.
Modified AGI limit for certain married individuals Maximum age for making traditional IRA contribu-
increased. If you are married and your spouse is cov- tions repealed. For tax years beginning after 2019, the
ered by a retirement plan at work and you aren’t, and you rule that you are not able to make contributions to your tra-
live with your spouse or file a joint return, your deduction ditional IRA for the year in which you reach age 70½ and
is phased out if your modified AGI is more than $XXX,XXX all later years has been repealed.
(up from $198,000 for 2021) but less than $XXX,XXX (up
from $208,000 for 2021). If your modified AGI is Required minimum distributions (RMDs). For distribu-
$XXX,XXX or more, you can’t take a deduction for contri- tions required to be made after 2019, the age for the re-
butions to a traditional IRA. quired beginning date for mandatory distributions is
Modified AGI limit for Roth IRA contributions in- changed to age 72 for taxpayers reaching age 70½ after
creased. For 2022, your Roth IRA contribution limit is re- December 31, 2019.
duced (phased out) in the following situations. Certain taxable non-tuition fellowship and stipend
payments. For tax years beginning after 2019, certain
• Your filing status is married filing jointly or qualifying taxable non-tuition fellowship and stipend payments are
widow(er) and your modified AGI is at least treated as compensation for the purpose of IRA contribu-
$XXX,XXX. You can’t make a Roth IRA contribution if tions. Compensation will include any amount included in
your modified AGI is $XXX,XXX or more. your gross income and paid to aid in your pursuit of gradu-
• Your filing status is single, head of household, or mar- ate or postdoctoral study.
ried filing separately and you didn’t live with your IRAs and unrelated business income. An IRA is sub-
spouse at any time in 2022 and your modified AGI is ject to tax on unrelated business income if it carries on an
at least $XXX,XXX. You can’t make a Roth IRA contri- unrelated trade or business. An unrelated trade or busi-
bution if your modified AGI is $XXX,XXX or more. ness means any trade or business regularly carried on by
• Your filing status is married filing separately, you lived the IRA or by a partnership of which it is a member. For
with your spouse at any time during the year, and your more information, see Unrelated business income under
modified AGI is more than zero. You can’t make a What Acts Result in Penalties or Additional Taxes, later.
Roth IRA contribution if your modified AGI is $XX,XXX IRA interest. Although interest earned from your IRA is
or more. generally not taxed in the year earned, it isn’t tax-exempt
Page 2 Publication 590-A (2021)interest. Tax on your traditional IRA is generally deferred throughout the publication and in the appendices at the
until you take a distribution. Don’t report this interest on back of the publication.
your return as tax-exempt interest. For more information
on tax-exempt interest, see the instructions for your tax re- How to use this publication. The rules that you must
turn. follow depend on which type of IRA you have. Use Table
I-1 to help you determine which parts of this publication to
Extended rollover period for qualified plan loan off-
read. Also use Table I-1 if you were referred to this publi-
sets in 2018 or later. For distributions made in tax years
cation from instructions to a form.
DRAFT AS OF
beginning after December 31, 2017, you have until the
due date (including extensions) for your tax return for the Comments and suggestions. We welcome your com-
tax year in which the offset occurs to roll over a qualified ments about this publication and suggestions for future
plan loan offset amount. For more information, see Time editions.
Limit for Making a Rollover Contribution in chapter 1. You can send us comments through IRS.gov/
No recharacterizations of conversions made in 2018 FormComments. Or, you can write to the Internal Reve-
October 8, 2021
or later. A conversion of a traditional IRA to a Roth IRA, nue Service, Tax Forms and Publications, 1111 Constitu-
and a rollover from any other eligible retirement plan to a tion Ave. NW, IR-6526, Washington, DC 20224.
Roth IRA, made after December 31, 2017, cannot be re- Although we can’t respond individually to each com-
characterized as having been made to a traditional IRA. ment received, we do appreciate your feedback and will
For more information, see Recharacterizations in chap- consider your comments and suggestions as we revise
ter 1. our tax forms, instructions, and publications. Do not send
Photographs of missing children. The IRS is a proud tax questions, tax returns, or payments to the above ad-
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lected by the Center may appear in this publication on pa- a tax question not answered by this publication or the How
ges that would otherwise be blank. You can help bring To Get Tax Help section at the end of this publication, go
these children home by looking at the photographs and to the IRS Interactive Tax Assistant page at IRS.gov/
calling 1-800-THE-LOST (1-800-843-5678) if you recog- Help/ITA where you can find topics by using the search
nize a child. feature or viewing the categories listed.
Getting tax forms, instructions, and publications.
Visit IRS.gov/Forms to download current and prior-year
Introduction forms, instructions, and publications.
This publication discusses contributions to individual re- Ordering tax forms, instructions, and publications.
tirement arrangements (IRAs). An IRA is a personal sav- Go to IRS.gov/OrderForms to order current forms, instruc-
ings plan that gives you tax advantages for setting aside tions, and publications; call 800-829-3676 to order
money for retirement. For information about distributions prior-year forms and instructions. The IRS will process
(including rollovers) from an IRA, see Pub. 590-B. your order for forms and publications as soon as possible.
Do not resubmit requests you’ve already sent us. You can
What are some tax advantages of an IRA? Two tax get forms and publications faster online.
advantages of an IRA are that:
• Contributions you make to an IRA may be fully or par- Useful Items
tially deductible, depending on which type of IRA you You may want to see:
have and on your circumstances; and
Publications
• Generally, amounts in your IRA (including earnings
and gains) aren’t taxed until distributed. In some ca- 590-B Distributions from Individual Retirement
ses, amounts aren’t taxed at all if distributed accord- Arrangements (IRAs)
590-B
ing to the rules.
560 Retirement Plans for Small Business (SEP,
What's in this publication? This publication discusses SIMPLE, and Qualified Plans)
560
contributions to traditional and Roth IRAs. It explains the
rules for: 571 Tax-Sheltered Annuity Plans (403(b) Plans)
571
• Setting up an IRA, 575 Pension and Annuity Income
575
• Contributing to an IRA, 939 General Rule for Pensions and Annuities
939
• Transferring money or property to and from an IRA, Forms (and Instructions)
and
• Taking a credit for contributions to an IRA. W-4P Withholding Certificate for Pension or Annuity
Payments
W-4P
It also explains the penalties and additional taxes that
apply when the rules aren’t followed. To assist you in 1099-R Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs,
1099-R
complying with the tax rules for IRAs, this publication con-
tains worksheets and sample forms which can be found Insurance Contracts, etc.
Publication 590-A (2021) Page 35304-SIMPLE Savings Incentive Match Plan for 8839 Qualified Adoption Expenses
Employees of Small Employers (SIMPLE)—Not
5304-SIMPLE 8839
for Use With a Designated Financial Institution 8880 Credit for Qualified Retirement Savings
Contributions
8880
5305-S SIMPLE Individual Retirement Trust Account
5305-S
5305-SA SIMPLE Individual Retirement Custodial 8915-B Qualified 2017 Disaster Retirement Plan
Distributions and Repayments
8915-B
Account
5305-SA
5305-SIMPLE Savings Incentive Match Plan for
DRAFT AS OF
8915-C Qualified 2018 Disaster Retirement Plan
Employees of Small Employers (SIMPLE)—for
5305-SIMPLE
Distributions and Repayments
8915-C
Use With a Designated Financial Institution
8915-D Qualified 2019 Disaster Retirement Plan
5329 Additional Taxes on Qualified Plans (Including
Distributions and Repayments
8915-D
IRAs) and Other Tax-Favored Accounts
5329
5498 IRA Contribution Information 8915-F Qualified Disaster Retirement Plan
October 8, 2021
Distributions and Repayments
8915-F
5498
8606 Nondeductible IRAs
8606
8815 Exclusion of Interest From Series EE and I See How To Get Tax Help for information about getting
U.S. Savings Bonds Issued After 1989 these publications and forms.
8815
Table I-1. Using This Publication
IF you need information on... THEN see...
traditional IRAs chapter 1.
Roth IRAs chapter 2, and parts of
chapter 1.
the credit for qualified retirement savings contributions chapter 3.
(the saver's credit)
how to keep a record of your contributions to, and Appendix A.
distributions from, your traditional IRA(s)
SEP IRAs, SIMPLE IRAs, and 401(k) plans Pub. 560.
Coverdell education savings accounts (ESAs) (formerly Pub. 970.
called education IRAs)
IF for 2021, you: THEN see...
• received social security benefits,
• had taxable compensation,
• contributed to a traditional IRA, and
• you or your spouse was covered by an employer
retirement plan,
and you want to...
first figure your modified adjusted gross income (AGI) Appendix B, Worksheet 1.
then figure how much of your traditional IRA contribution Appendix B, Worksheet 2.
you can deduct
and finally figure how much of your social security is Appendix B, Worksheet 3.
taxable
Page 4 Publication 590-A (2021)Table I-2. How Are a Traditional IRA and a Roth IRA Different?
This table shows the differences between traditional and Roth IRAs. Answers in the middle column apply to traditional
IRAs. Answers in the right column apply to Roth IRAs.
Question Answer
Traditional IRA? Roth IRA?
DRAFT AS OF
No. For tax years after 2019, you are
able to contribute to your IRA even if
Is there an age limit on when I can open No. You can be any age. See Can You
you have reached age 701/2 or older.
and contribute to a . . . . . . . . . . . . . . . . Contribute to a Roth IRA? in chapter 2.
See Who Can Open a Traditional IRA?
in chapter 1.
October 8, 2021
Yes. For 2021, you may be able to
Yes. For 2021, you can contribute to a contribute to a Roth IRA up to:
traditional IRA up to: • $6,000, or
If I earned more than $6,000 in 2021
• $6,000, or • $7,000 if you were age 50 or older
($7,000 if I was age 50 or older by the
• $7,000 if you were age 50 or older by the end of 2021,
by the end of 2021. but the amount you can contribute may
end of 2021), is there a limit on how
There is no upper limit on how much be less than that depending on your
much I can contribute to a . . . . . . . . . . .
you can earn and still contribute. See income, filing status, and if you
How Much Can Be Contributed? in contribute to another IRA. See How
chapter 1. Much Can Be Contributed? and Table
2-1 in chapter 2.
Yes. You may be able to deduct your
contributions to a traditional IRA
depending on your income, filing
No. You can never deduct contributions
status, whether you are covered by a
Can I deduct contributions to a . . . . . . . to a Roth IRA. See What Is a Roth IRA?
retirement plan at work, and whether
in chapter 2.
you receive social security benefits.
See How Much Can You Deduct? in
chapter 1.
Not unless you make nondeductible
contributions to your traditional IRA. In No. You don’t have to file a form if you
Do I have to file a form just because I
that case, you must file Form 8606. See contribute to a Roth IRA. See
contribute to a . . . . . . . . . . . . . . . . . . . .
Nondeductible Contributions in Contributions not reported in chapter 2.
chapter 1.
Publication 590-A (2021) Page 5sation for IRA purposes only if shown in box 1 of Form
W-2.
1. Commissions. An amount you receive that is a percent-
age of profits or sales price is compensation.
Traditional IRAs Self-employment income. If you are self-employed (a
sole proprietor or a partner), compensation is the net
DRAFT AS OF
earnings from your trade or business (provided your per-
Introduction sonal services are a material income-producing factor) re-
duced by the total of:
This chapter discusses the original IRA. In this publica-
tion, the original IRA (sometimes called an ordinary or reg- • The deduction for contributions made on your behalf
ular IRA) is referred to as a “traditional IRA.” A traditional to retirement plans, and
October 8, 2021
IRA is any IRA that isn’t a Roth IRA or a SIMPLE IRA. The • The deduction allowed for the deductible part of your
following are two advantages of a traditional IRA. self-employment taxes.
• You may be able to deduct some or all of your contri- Compensation includes earnings from self-employment
butions to it, depending on your circumstances. even if they aren’t subject to self-employment tax because
of your religious beliefs.
• Generally, amounts in your IRA, including earnings
and gains, aren’t taxed until they are distributed. Self-employment loss. If you have a net loss from
self-employment, don’t subtract the loss from your salar-
ies or wages when figuring your total compensation.
Who Can Open Alimony and separate maintenance. For IRA purpo-
a Traditional IRA? ses, compensation includes any taxable alimony and sep-
arate maintenance payments you receive under a decree
You can open and make contributions to a traditional IRA of divorce or separate maintenance but only with respect
if you (or, if you file a joint return, your spouse) received to divorce or separation instruments executed on or be-
taxable compensation during the year. fore December 31, 2018, that have not been modified to
exclude such amounts.
You can have a traditional IRA whether or not you are
covered by any other retirement plan. However, you may Nontaxable combat pay. If you were a member of the
not be able to deduct all of your contributions if you or U.S. Armed Forces, compensation includes any nontaxa-
your spouse is covered by an employer retirement plan. ble combat pay you received. This amount should be re-
See How Much Can You Deduct, later. ported in box 12 of your 2021 Form W-2 with code Q.
For tax years beginning after December 31, 2019, Graduate or postdoctoral study. Compensation in-
TIP the rule that you are not able to make contribu- cludes any income paid to you to aid you in the pursuit of
tions to your traditional IRA for the year in which graduate or postdoctoral study.
you reach age 70½ and all later years has been repealed.
Both spouses have compensation. If both you and Table 1-1. Compensation for Purposes
your spouse have compensation, each of you can open of an IRA
an IRA. You can’t both participate in the same IRA. If you
Includes... Doesn’t include...
file a joint return, only one of you needs to have compen-
sation. earnings and profits from
property.
wages, salaries, etc.
What Is Compensation? interest and
dividend income.
Generally, compensation is what you earn from working. commissions.
For a summary of what compensation does and doesn’t pension or annuity
include, see Table 1-1. Compensation includes all of the income.
items discussed next (even if you have more than one self-employment income.
deferred compensation.
type).
taxable alimony and separate
maintenance.
Wages, salaries, etc. Wages, salaries, tips, professional
income from certain
fees, bonuses, and other amounts you receive for provid- partnerships.
ing personal services are compensation. The IRS treats nontaxable combat pay.
as compensation any amount properly shown in box 1 any amounts you exclude
(Wages, tips, other compensation) of Form W-2, Wage from income.
and Tax Statement, provided that amount is reduced by
taxable non-tuition fellowship and
any amount properly shown in box 11 (Nonqualified stipend payments.
plans). Scholarship and fellowship payments are compen-
Page 6 Chapter 1 Traditional IRAsWhat Isn’t Compensation? • Contributions, except for rollover contributions, must
be in cash. See Rollovers, later.
Compensation doesn’t include any of the following items.
• You must have a nonforfeitable right to the amount at
• Earnings and profits from property, such as rental in- all times.
come, interest income, and dividend income.
• Money in your account can’t be used to buy a life in-
• Pension or annuity income. surance policy.
• Deferred compensation received (compensation pay-
DRAFT AS OF
• Assets in your account can’t be combined with other
ments postponed from a past year). property, except in a common trust fund or common
• Income from a partnership for which you don’t provide investment fund.
services that are a material income-producing factor. • You must start receiving distributions by April 1 of the
• Conservation Reserve Program (CRP) payments re- year following the year in which you reach age 72.
See Pub. 590-B for more information about required
October 8, 2021
ported on Schedule SE (Form 1040), line 1b.
minimum distributions (RMDs) and other distribution
• Any amounts (other than combat pay) you exclude rules.
from income, such as foreign earned income and
housing costs.
Individual Retirement Annuity
You can open an individual retirement annuity by purchas-
When Can a Traditional IRA Be ing an annuity contract or an endowment contract from a
Opened? life insurance company.
An individual retirement annuity must be issued in your
You can open a traditional IRA at any time. However, the name as the owner, and either you or your beneficiaries
time for making contributions for any year is limited. See who survive you are the only ones who can receive the
When Can Contributions Be Made, later. benefits or payments.
An individual retirement annuity must meet all the fol-
How Can a Traditional IRA Be lowing requirements.
• Your entire interest in the contract must be nonforfeit-
Opened? able.
You can open different kinds of IRAs with a variety of or- • The contract must provide that you can’t transfer any
ganizations. You can open an IRA at a bank or other fi- portion of it to any person other than the issuer.
nancial institution or with a mutual fund or life insurance • There must be flexible premiums so that if your com-
company. You can also open an IRA through your stock- pensation changes, your payment can also change.
broker. Any IRA must meet Internal Revenue Code re- This provision applies to contracts issued after No-
quirements. The requirements for the various arrange- vember 6, 1978.
ments are discussed below.
• The contract must provide that contributions can’t be
Kinds of traditional IRAs. Your traditional IRA can be more than the deductible amount for an IRA for the
an individual retirement account or annuity. It can be part year, and that you must use any refunded premiums
of either a SEP or an employer or employee association to pay for future premiums or to buy more benefits be-
trust account. fore the end of the calendar year after the year in
which you receive the refund.
Individual Retirement Account • Distributions must begin by April 1 of the year follow-
ing the year in which you reach age 72. See Pub.
An individual retirement account is a trust or custodial ac- 590-B for more information about required minimum
count set up in the United States for the exclusive benefit distributions (RMDs) and other distribution rules.
of you or your beneficiaries. The account is created by a
written document. The document must show that the ac- Individual Retirement Bonds
count meets all of the following requirements.
• The trustee or custodian must be a bank, a federally The sale of individual retirement bonds issued by the fed-
insured credit union, a savings and loan association, eral government was suspended after April 30, 1982. The
or an entity approved by the IRS to act as trustee or bonds have the following features.
custodian. • They stop earning interest when you reach age 701/2.
• The trustee or custodian generally can’t accept contri- If you die, interest will stop 5 years after your death, or
butions of more than the deductible amount for the on the date you would have reached age 701/2, which-
year. However, rollover contributions and employer ever is earlier.
contributions to a SEP can be more than this amount. • You can’t transfer the bonds.
Chapter 1 Traditional IRAs Page 7If you cash (redeem) the bonds before the year in which
you reach age 591/2, you may be subject to a 10% addi-
tional tax. See Pub. 590-B for more information about the How Much Can Be
age 591/2 rule for early distributions and other distribution
rules. You can roll over redemption proceeds into IRAs.
Contributed?
There are limits and other rules that affect the amount that
SIMPLE IRAs can be contributed to a traditional IRA. These limits and
DRAFT AS OF
rules are explained below.
A SIMPLE IRA plan is a tax-favored retirement plan that
certain small employers (including self-employed employ- Community property laws. Except as discussed later
ees) can set up for the benefit of their employees. Your under Kay Bailey Hutchison Spousal IRA Limit, each
participation in your employer's SIMPLE IRA plan doesn’t spouse figures his or her limit separately, using his or her
prevent you from making contributions to a traditional or own compensation. This is the rule even in states with
October 8, 2021
Roth IRA. See Pub. 560 for more information about SIM- community property laws.
PLE IRAs.
Brokers' commissions. Brokers' commissions paid in
Simplified Employee Pension (SEP) connection with your traditional IRA are subject to the con-
tribution limit. For information about whether you can de-
A SEP is a written arrangement that allows your employer duct brokers' commissions, see Brokers' commissions,
to make deductible contributions to a traditional IRA (a later, under How Much Can You Deduct.
SEP IRA) set up for you to receive such contributions.
Trustees' fees. Trustees' administrative fees aren’t sub-
Generally, distributions from SEP IRAs are subject to the
ject to the contribution limit. For information about whether
withdrawal and tax rules that apply to traditional IRAs. See
you can deduct trustees' fees, see Trustees' fees, later,
Pub. 560 for more information about SEPs.
under How Much Can You Deduct.
Employer and Employee Qualified reservist repayments. If you were a member
Association Trust Accounts of a reserve component and you were ordered or called to
active duty after September 11, 2001, you may be able to
Your employer or your labor union or other employee as- contribute (repay) to an IRA amounts equal to any quali-
sociation can set up a trust to provide individual retirement fied reservist distributions (defined under Early Distribu-
accounts for employees or members. The requirements tions in Pub. 590-B) you received. You can make these re-
for individual retirement accounts apply to these tradi- payment contributions even if they would cause your total
tional IRAs. contributions to the IRA to be more than the general limit
on contributions. To be eligible to make these repayment
contributions, you must have received a qualified reservist
Required Disclosures distribution from an IRA or from a section 401(k) or 403(b)
The trustee or issuer (sometimes called the sponsor) of plan or a similar arrangement. See Early Distributions in
your traditional IRA must generally give you a disclosure Pub. 590-B for more information on qualified reservist dis-
statement at least 7 days before you open your IRA. How- tributions.
ever, the sponsor doesn’t have to give you the statement Limit. Your qualified reservist repayments can’t be
until the date you open (or purchase, if earlier) your IRA, more than your qualified reservist distributions.
provided you are given at least 7 days from that date to re-
voke the IRA. When repayment contributions can be made. You
can’t make these repayment contributions later than the
The disclosure statement must explain certain items in date that is 2 years after your active duty period ends.
plain language. For example, the statement should ex-
plain when and how you can revoke the IRA, and include No deduction. You can’t deduct qualified reservist re-
the name, address, and telephone number of the person payments.
to receive the notice of cancellation. This explanation Reserve component. The term “reserve component”
must appear at the beginning of the disclosure statement. means the:
If you revoke your IRA within the revocation period, the • Army National Guard of the United States,
sponsor must return to you the entire amount you paid.
The sponsor must report on the appropriate IRS forms • Army Reserve,
both your contribution to the IRA (unless it was made by a • Naval Reserve,
trustee-to-trustee transfer) and the amount returned to
you. These requirements apply to all sponsors. • Marine Corps Reserve,
• Air National Guard of the United States,
• Air Force Reserve,
• Coast Guard Reserve, or
• Reserve Corps of the Public Health Service.
Page 8 Chapter 1 Traditional IRAsFiguring your IRA deduction. The repayment of 50 or older) can be contributed toward its cost for the tax
qualified reservist distributions doesn’t affect the amount year, including the cost of life insurance coverage. If more
you can deduct as an IRA contribution. than this amount is contributed, the annuity or endowment
contract is disqualified.
Reporting the repayment. If you repay a qualified re-
servist distribution, include the amount of the repayment
with nondeductible contributions on line 1 of Form 8606. Kay Bailey Hutchison Spousal IRA
Example. In 2021, your IRA contribution limit is
Limit
DRAFT AS OF
$6,000. However, because of your filing status and AGI,
For 2021, if you file a joint return and your taxable com-
the limit on the amount you can deduct is $3,500. You can
pensation is less than that of your spouse, the most that
make a nondeductible contribution of $2,500 ($6,000 –
can be contributed for the year to your IRA is the smaller
$3,500). In an earlier year, you received a $3,000 qualified
of the following two amounts.
reservist distribution, which you would like to repay this
October 8, 2021
year. 1. $6,000 ($7,000 if you are age 50 or older).
For 2021, you can contribute a total of $9,000 to your
2. The total compensation includible in the gross income
IRA. This is made up of the maximum deductible contribu-
of both you and your spouse for the year, reduced by
tion of $3,500; a nondeductible contribution of $2,500;
the following two amounts.
and a $3,000 qualified reservist repayment. You contrib-
ute the maximum allowable for the year. Since you are a. Your spouse's IRA contribution for the year to a
making a nondeductible contribution ($2,500) and a quali- traditional IRA.
fied reservist repayment ($3,000), you must file Form
8606 with your return and include $5,500 ($2,500 + b. Any contributions for the year to a Roth IRA on be-
$3,000) on line 1 of Form 8606. The qualified reservist re- half of your spouse.
payment isn’t deductible. This means that the total combined contributions that
Contributions on your behalf to a traditional IRA can be made for the year to your IRA and your spouse's
reduce your limit for contributions to a Roth IRA. IRA can be as much as $12,000 ($13,000 if only one of
!
CAUTION See chapter 2 for information about Roth IRAs. you is age 50 or older, or $14,000 if both of you are age 50
or older).
General Limit Note. This traditional IRA limit is reduced by any con-
tributions to a section 501(c)(18) plan (generally, a pen-
For 2021, the most that can be contributed to your tradi- sion plan created before June 25, 1959, that is funded en-
tional IRA is generally the smaller of the following tirely by employee contributions).
amounts.
Example. Kristin, a full-time student with no taxable
• $6,000 ($7,000 if you are age 50 or older). compensation, marries Carl during the year. Neither of
• Your taxable compensation (defined earlier) for the them was age 50 by the end of 2021. For the year, Carl
year. has taxable compensation of $30,000. He plans to con-
tribute (and deduct) $6,000 to a traditional IRA. If he and
Note. This limit is reduced by any contributions to a Kristin file a joint return, each can contribute $6,000 to a
section 501(c)(18) plan (generally, a pension plan created traditional IRA. This is because Kristin, who has no com-
before June 25, 1959, that is funded entirely by employee pensation, can add Carl's compensation, reduced by the
contributions). amount of his IRA contribution ($30,000 − $6,000 =
$24,000), to her own compensation (-0-) to figure her
This is the most that can be contributed regardless of maximum contribution to a traditional IRA. In her case,
whether the contributions are to one or more traditional $6,000 is her contribution limit, because $6,000 is less
IRAs or whether all or part of the contributions are nonde- than $24,000 (her compensation for purposes of figuring
ductible. (See Nondeductible Contributions, later.) Quali- her contribution limit).
fied reservist repayments don’t affect this limit.
Examples. George, who is 34 years old and single, Filing Status
earns $24,000 in 2021. His IRA contributions for 2021 are
limited to $6,000. Generally, except as discussed earlier under Kay Bailey
Danny, an unmarried college student working part time, Hutchison Spousal IRA Limit, your filing status has no ef-
earns $3,500 in 2021. His IRA contributions for 2021 are fect on the amount of allowable contributions to your tradi-
limited to $3,500, the amount of his compensation. tional IRA. However, if during the year either you or your
spouse was covered by a retirement plan at work, your
More than one IRA. If you have more than one IRA, the deduction may be reduced or eliminated, depending on
limit applies to the total contributions made on your behalf your filing status and income. See How Much Can You
to all your traditional IRAs for the year. Deduct, later.
Annuity or endowment contracts. If you invest in an Example. Tom and Darcy are married and both are
annuity or endowment contract under an individual retire- 53. They both work and each has a traditional IRA. Tom
ment annuity, no more than $6,000 ($7,000 if you are age earned $3,800 and Darcy earned $48,000 in 2021.
Chapter 1 Traditional IRAs Page 9Because of the Kay Bailey Hutchison Spousal IRA limit spouse who has compensation. See Who Can Open a
rule, even though Tom earned less than $7,000, they can Traditional IRA, earlier. Even if contributions can’t be
contribute up to $7,000 to his IRA for 2021 if they file a made for the current year, the amounts contributed for
joint return. They can contribute up to $7,000 to Darcy's years in which you did qualify can remain in your IRA.
IRA. If they file separate returns, the amount that can be Contributions can resume for any years that you qualify.
contributed to Tom's IRA is limited by his earned income,
$3,800. Contributions must be made by due date. Contribu-
tions can be made to your traditional IRA for a year at any
DRAFT AS OF
time during the year or by the due date for filing your re-
Less Than Maximum Contributions turn for that year, not including extensions. For most peo-
ple, this means that contributions for 2021 must be made
If contributions to your traditional IRA for a year were less
by April 18, 2022.
than the limit, you can’t contribute more after the due date
of your return for that year to make up the difference. For tax years beginning after 2019, the rule that
October 8, 2021
TIP you are not able to make contributions to your tra-
Example. Rafael, who is 40, earns $30,000 in 2021. ditional IRA for the year in which you reach age
Although he can contribute up to $6,000 for 2021, he con- 70½ and all later years has been repealed.
tributes only $3,000. After April 18, 2022, Rafael can’t
make up the difference between his actual contributions Designating year for which contribution is made. If
for 2021 ($3,000) and his 2021 limit ($6,000). He can’t an amount is contributed to your traditional IRA between
contribute $3,000 more than the limit for any later year. January 1 and April 15, you should tell the sponsor which
year (the current year or the previous year) the contribu-
More Than Maximum Contributions tion is for. If you don’t tell the sponsor which year it is for,
the sponsor can assume, and report to the IRS, that the
If contributions to your IRA for a year were more than the contribution is for the current year (the year the sponsor
limit, you can apply the excess contribution in one year to received it).
a later year if the contributions for that later year are less
than the maximum allowed for that year. However, a pen- Filing before a contribution is made. You can file your
alty or additional tax may apply. See Excess Contribu- return claiming a traditional IRA contribution before the
tions, later, under What Acts Result in Penalties or Addi- contribution is actually made. Generally, the contribution
tional Taxes. must be made by the due date of your return, not including
extensions.
When Can Contributions Be Contributions not required. You don’t have to contrib-
ute to your traditional IRA for every tax year, even if you
Made? can.
As soon as you open your traditional IRA, contributions
can be made to it through your chosen sponsor (trustee or How Much Can You Deduct?
other administrator). Contributions must be in the form of
money (cash, check, or money order). Property can’t be Generally, you can deduct the lesser of:
contributed. • The contributions to your traditional IRA for the year,
Although property can’t be contributed, your IRA may or
invest in certain property. For example, your IRA may pur- • The general limit (or the Kay Bailey Hutchison
chase shares of stock. For other restrictions on the use of Spousal IRA limit, if applicable) explained earlier un-
funds in your IRA, see Prohibited Transactions, later in der How Much Can Be Contributed.
this chapter. You may be able to transfer or roll over cer-
However, if you or your spouse was covered by an em-
tain property from one retirement plan to another. See the
ployer retirement plan, you may not be able to deduct this
discussion of rollovers and other transfers later in this
amount. See Limit if Covered by Employer Plan, later.
chapter under Can You Move Retirement Plan Assets.
You may be able to claim a credit for contributions
You can make a contribution to your IRA by hav-
TIP to your traditional IRA. For more information, see
TIP ing your income tax refund (or a portion of your re- chapter 3.
fund), if any, paid directly to your traditional IRA,
Roth IRA, or SEP IRA. For details, see the instructions for
your income tax return or Form 8888, Allocation of Re- Trustees' fees. Trustees' administrative fees that are bil-
fund. led separately and paid in connection with your traditional
IRA aren’t deductible as IRA contributions. You are also
Contributions can be made to your traditional IRA for not able to deduct these fees as an itemized deduction.
each year that you receive compensation. For any year in Brokers' commissions. These commissions are part of
which you don’t work, contributions can’t be made to your your IRA contribution and, as such, are deductible subject
IRA unless you receive taxable alimony, nontaxable com- to the limits.
bat pay, military differential pay, or file a joint return with a
Page 10 Chapter 1 Traditional IRAsFull deduction. If neither you nor your spouse was cov- Federal judges. For purposes of the IRA deduction, fed-
ered for any part of the year by an employer retirement eral judges are covered by an employer plan.
plan, you can take a deduction for total contributions to
one or more of your traditional IRAs of up to the lesser of: For Which Year(s) Are You Covered?
• $6,000 ($7,000 if you are age 50 or older), or Special rules apply to determine the tax years for which
• 100% of your compensation. you are covered by an employer plan. These rules differ
depending on whether the plan is a defined contribution
DRAFT AS OF
This limit is reduced by any contributions made to a
501(c)(18) plan on your behalf. plan or a defined benefit plan.
Kay Bailey Hutchison Spousal IRA. In the case of a Tax year. Your tax year is the annual accounting period
married couple with unequal compensation who file a joint you use to keep records and report income and expenses
return, the deduction for contributions to the traditional on your income tax return. For almost all people, the tax
IRA of the spouse with less compensation is limited to the year is the calendar year.
October 8, 2021
lesser of:
Defined contribution plan. Generally, you are covered
1. $6,000 ($7,000 if the spouse with the lower compen- by a defined contribution plan for a tax year if amounts are
sation is age 50 or older), or contributed or allocated to your account for the plan year
2. The total compensation includible in the gross income that ends with or within that tax year. However, also see
of both spouses for the year reduced by the following Situations in Which You Aren’t Covered, later.
three amounts. A defined contribution plan is a plan that provides for a
separate account for each person covered by the plan. In
a. The IRA deduction for the year of the spouse with a defined contribution plan, the amount to be contributed
the greater compensation. to each participant's account is spelled out in the plan.
b. Any designated nondeductible contribution for the The level of benefits actually provided to a participant de-
year made on behalf of the spouse with the pends on the total amount contributed to that participant's
greater compensation. account and any earnings and losses on those contribu-
tions. Types of defined contribution plans include
c. Any contributions for the year to a Roth IRA on be- profit-sharing plans, stock bonus plans, and money pur-
half of the spouse with the greater compensation. chase pension plans.
This limit is reduced by any contributions to a section Example. Company A has a money purchase pension
501(c)(18) plan on behalf of the spouse with the lesser plan. Its plan year is from July 1 to June 30. The plan pro-
compensation. vides that contributions must be allocated as of June 30.
Note. If you were divorced or legally separated (and Bob, an employee, leaves Company A on December 31,
didn’t remarry) before the end of the year, you can’t de- 2020. The contribution for the plan year ending on June
duct any contributions to your spouse's IRA. After a di- 30, 2021, is made February 15, 2022. Because an amount
vorce or legal separation, you can deduct only the contri- is contributed to Bob's account for the plan year, Bob is
butions to your own IRA. Your deductions are subject to covered by the plan for his 2021 tax year.
the rules for single individuals. A special rule applies to certain plans in which it isn’t
possible to determine if an amount will be contributed to
Covered by an employer retirement plan. If you or your account for a given plan year. If, for a plan year, no
your spouse was covered by an employer retirement plan amounts have been allocated to your account that are at-
at any time during the year for which contributions were tributable to employer contributions, employee contribu-
made, your deduction may be further limited. This is dis- tions, or forfeitures, by the last day of the plan year, and
cussed later under Limit if Covered by Employer Plan. contributions are discretionary for the plan year, you aren’t
Limits on the amount you can deduct don’t affect the covered for the tax year in which the plan year ends. If, af-
amount that can be contributed. ter the plan year ends, the employer makes a contribution
for that plan year, you are covered for the tax year in
which the contribution is made.
Are You Covered by an Employer
Plan? Example. Mickey was covered by a profit-sharing plan
and left the company on December 31, 2020. The plan
The Form W-2 you receive from your employer has a box year runs from July 1 to June 30. Under the terms of the
used to indicate whether you were covered for the year. plan, employer contributions don’t have to be made, but if
The “Retirement plan” box should be checked if you were they are made, they are contributed to the plan before the
covered. due date for filing the company's tax return. Such contri-
butions are allocated as of the last day of the plan year,
Reservists and volunteer firefighters should also see and allocations are made to the accounts of individuals
Situations in Which You Aren’t Covered, later. who have any service during the plan year. As of June 30,
2021, no contributions were made that were allocated to
If you aren’t certain whether you were covered by your the June 30, 2021, plan year, and no forfeitures had been
employer's retirement plan, you should ask your em- allocated within the plan year. In addition, as of that date,
ployer.
Chapter 1 Traditional IRAs Page 11the company wasn’t obligated to make a contribution for a. The United States,
such plan year and it was impossible to determine
b. A state or political subdivision of a state, or
whether or not a contribution would be made for the plan
year. On December 31, 2021, the company decided to c. An instrumentality of either (a) or (b) above.
contribute to the plan for the plan year ending June 30,
2. You didn’t serve more than 90 days on active duty
2021. That contribution was made on February 15, 2022.
during the year (not counting duty for training).
Mickey is an active participant in the plan for his 2022 tax
year but not for his 2021 tax year.
DRAFT AS OF
Volunteer firefighters. If the only reason you participate
No vested interest. If an amount is allocated to your in a plan is because you are a volunteer firefighter, you
account for a plan year, you are covered by that plan even may not be covered by the plan. You aren’t covered by the
if you have no vested interest in (legal right to) the ac- plan if both of the following conditions are met.
count. 1. The plan you participate in is established for its em-
ployees by:
October 8, 2021
Defined benefit plan. If you are eligible to participate in
your employer's defined benefit plan for the plan year that a. The United States,
ends within your tax year, you are covered by the plan.
b. A state or political subdivision of a state, or
This rule applies even if you:
c. An instrumentality of either (a) or (b) above.
• Declined to participate in the plan,
• Didn’t make a required contribution, or 2. Your accrued retirement benefits at the beginning of
the year won’t provide more than $1,800 per year at
• Didn’t perform the minimum service required to accrue retirement.
a benefit for the year.
A defined benefit plan is any plan that isn’t a defined Limit if Covered by Employer Plan
contribution plan. In a defined benefit plan, the level of
benefits to be provided to each participant is spelled out in As discussed earlier, the deduction you can take for con-
the plan. The plan administrator figures the amount nee- tributions made to your traditional IRA depends on
ded to provide those benefits and those amounts are con- whether you or your spouse was covered for any part of
tributed to the plan. Defined benefit plans include pension the year by an employer retirement plan. Your deduction
plans and annuity plans. is also affected by how much income you had and by your
filing status. Your deduction may also be affected by so-
Example. Nick, an employee of Company B, is eligible cial security benefits you received.
to participate in Company B's defined benefit plan, which
has a July 1 to June 30 plan year. Nick leaves Company B Reduced or no deduction. If either you or your spouse
on December 31, 2020. Because Nick is eligible to partici- was covered by an employer retirement plan, you may be
pate in the plan for its year ending June 30, 2021, he is entitled to only a partial (reduced) deduction or no deduc-
covered by the plan for his 2021 tax year. tion at all, depending on your income and your filing sta-
tus.
No vested interest. If you accrue a benefit for a plan
Your deduction begins to decrease (phase out) when
year, you are covered by that plan even if you have no
your income rises above a certain amount and is elimina-
vested interest in (legal right to) the accrual.
ted altogether when it reaches a higher amount. These
amounts vary depending on your filing status.
Situations in Which You Aren’t Covered To determine if your deduction is subject to the phase-
out, you must determine your modified AGI and your filing
Unless you are covered by another employer plan, you
status, as explained later under Deduction Phaseout.
aren’t covered by an employer plan if you are in one of the
Once you have determined your modified AGI and your fil-
situations described below.
ing status, you can use Table 1-2 or Table 1-3 to deter-
Social security or railroad retirement. Coverage under mine if the phaseout applies.
social security or railroad retirement isn’t coverage under
an employer retirement plan. Social Security Recipients
Benefits from previous employer's plan. If you receive Instead of using Table 1-2 or Table 1-3 and Worksheet
retirement benefits from a previous employer's plan, you 1-2, complete the worksheets in Appendix B of this publi-
aren’t covered by that plan. cation if, for the year, all of the following apply.
Reservists. If the only reason you participate in a plan is
• You received social security benefits.
because you are a member of a reserve unit of the Armed • You received taxable compensation.
Forces, you may not be covered by the plan. You aren’t • Contributions were made to your traditional IRA.
covered by the plan if both of the following conditions are
met. • You or your spouse were covered by an employer re-
tirement plan.
1. The plan you participate in is established for its em-
Use the worksheets in Appendix B to figure your IRA de-
ployees by:
duction, your nondeductible contribution, and the taxable
Page 12 Chapter 1 Traditional IRAsTable 1-2. Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at
Work
If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of
your deduction.
IF your filing status is... AND your modified AGI is... THEN you can take...
DRAFT AS OF
$66,000 or less a full deduction.
single or more than $66,000
a partial deduction.
head of household but less than $76,000
$76,000 or more no deduction.
$105,000 or less a full deduction.
October 8, 2021
married filing jointly or more than $105,000
a partial deduction.
qualifying widow(er) but less than $125,000
$125,000 or more no deduction.
less than $10,000 a partial deduction.
married filing separately2
$10,000 or more no deduction.
1
Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), earlier.
2
If you didn’t live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction
is determined under the “Single” filing status).
Table 1-3. Effect of Modified AGI1 on Deduction if You Aren’t Covered by a Retirement Plan
at Work
If you aren’t covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of
your deduction.
IF your filing status is... AND your modified AGI is... THEN you can take...
single,
head of household, or any amount a full deduction.
qualifying widow(er)
married filing jointly or separately with a
spouse who isn’t covered by a plan any amount a full deduction.
at work
$198,000 or less a full deduction.
married filing jointly with a spouse who is more than $198,000
a partial deduction.
covered by a plan at work but less than $208,000
$208,000 or more no deduction.
married filing separately with a spouse who is less than $10,000 a partial deduction.
covered by a plan at work2 $10,000 or more no deduction.
1
Modified AGI (adjusted gross income). See Modified adjusted gross income (AGI), later.
2
You are entitled to the full deduction if you didn’t live with your spouse at any time during the year.
portion, if any, of your social security benefits. Appendix B reduced or eliminated depending on your filing status and
includes an example with filled-in worksheets to assist modified AGI, as shown in Table 1-2.
you.
If your spouse is covered. If you aren’t covered by an
Deduction Phaseout employer retirement plan, but your spouse is, and you
didn’t receive any social security benefits, your IRA de-
The amount of any reduction in the limit on your IRA de- duction may be reduced or eliminated entirely depending
duction (phaseout) depends on whether you or your on your filing status and modified AGI as shown in Ta-
spouse was covered by an employer retirement plan. ble 1-3.
Covered by a retirement plan. If you are covered by an Filing status. Your filing status depends primarily on
employer retirement plan and you didn’t receive any social your marital status. For this purpose, you need to know if
security retirement benefits, your IRA deduction may be your filing status is single or head of household, married
Chapter 1 Traditional IRAs Page 13filing jointly or qualifying widow(er), or married filing sepa- • Student loan interest deduction.
rately. If you need more information on filing status, see
Pub. 501, Exemptions, Standard Deduction, and Filing In-
• Exclusion of qualified savings bond interest shown on
Form 8815.
formation.
• Exclusion of employer-provided adoption benefits
Lived apart from spouse. If you didn’t live with your shown on Form 8839.
spouse at any time during the year and you file a separate
return, your filing status, for this purpose, is single. This is your modified AGI.
DRAFT AS OF
Income from IRA distributions. If you received distri-
Modified adjusted gross income (AGI). You can use butions in 2021 from one or more traditional IRAs and
Worksheet 1-1 to figure your modified AGI. If you made your traditional IRAs include only deductible contributions,
contributions to your IRA for 2021 and received a distribu- your distributions are fully taxable and are included in your
tion from your IRA in 2021, see Both contributions for modified AGI. See Pub. 590-B for more information on
2021 and distributions in 2021, later. distributions.
October 8, 2021
Don’t assume that your modified AGI is the same
Both contributions for 2021 and distributions in
! as your compensation. Your modified AGI may in-
CAUTION clude income in addition to your compensation
2021. If all three of the following apply, any IRA distribu-
tions you received in 2021 may be partly tax free and
(discussed earlier) such as interest, dividends, and in-
partly taxable.
come from IRA distributions.
• You received distributions in 2021 from one or more
Form 1040 or 1040-SR. If you file Form 1040 or traditional IRAs.
1040-SR, refigure the amount on line 11, the “adjusted
gross income” line, without taking into account any of the
• You made contributions to a traditional IRA for 2021.
following amounts. • Some of those contributions may be nondeductible
contributions. (See Nondeductible Contributions and
• IRA deduction.
Worksheet 1-2, later.)
• Student loan interest deduction. If this is your situation, you must figure the taxable part of
• Foreign earned income exclusion. the traditional IRA distribution before you can figure your
• Foreign housing exclusion or deduction. modified AGI. To do this, you can use Worksheet 1-1 in
Pub. 590-B.
• Exclusion of qualified savings bond interest shown on If at least one of the above doesn’t apply, figure your
Form 8815. modified AGI using Worksheet 1-1.
• Exclusion of employer-provided adoption benefits
shown on Form 8839.
This is your modified AGI.
Form 1040-NR. If you file Form 1040-NR, refigure the
amount on line 11, the “adjusted gross income” line, with-
out taking into account any of the following amounts.
• IRA deduction.
Page 14 Chapter 1 Traditional IRAsYou can also read
