IRS Updates IRS Publication 590 for 2012
By Beverly DeVeny, IRA Technical Expert
Follow Me on Twitter: @BevIRAEdSlott
The IRS updated Publication 590, Individual Retirement Arrangements (IRAs) For use in preparing 2012 Returns. This publication is a good source of basic information about Traditional and Roth IRAs, simplified employee pension (SEP) plans, and savings incentive match plans for employees of small employers (SIMPLE) IRA plans. It explains the rules for setting up and contributing to an IRA, moving money to and from an IRA, handling an inherited IRA, and receiving distributions. It is used by taxpayers and tax preparers when filing 2012 federal income tax returns, IRS Form 1040.
Pub 590 contains a section called “What’s New for 2012.” Some of the notable 2012 IRA changes are:
- If you were covered by a company retirement plan for 2012, your Traditional IRA tax deduction is reduced (phased-out) if your modified adjusted gross income (MAGI) is between $92,000 - $112,000 if you are married filing jointly ($58,000 - $68,000 if you are single or head of household).
- Your ability to make a Roth IRA contribution is reduced (phased-out) if your MAGI is between $173,000 - $183,000 if you are married filing jointly ($110,000 - $125,000 if you are single or head of household).
- Tax-free qualified charitable distributions have been reinstated for 2012 through 2013.
It also highlights IRA changes for 2013, such as the new income and contribution limits for IRA contributions, and new phase-out ranges for Traditional IRA deductibility and Roth IRA contributions. For example, the maximum IRA contribution for 2013 increased to $5,500 if you are age 49 or younger and $6,500 if you are age 50 or older.
While Pub 590 provides basic information on IRAs, it can never be used as a substitute for IRA information that’s contained in the law or regulations. Also, it should not be used in place of advice from a tax or legal advisor. If you need tax or legal advice, you should speak with a tax professional.
- The IRS updated Publication 590, Individual Retirement Arrangements (IRAs) For use in preparing 2012 Returns.
- It provides basic IRA information but cannot be used as a substitute for tax or legal advice.
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to firstname.lastname@example.org for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at email@example.com or (516) 536-8282 with any questions.