General Disclaimer and Copyright A

What’s New 1

Recent Regulatory Developments Affecting IRA Distributions, Reporting, and Related Accounts 1

1. Summary of Operational Procedures for Setting Up Your IRA 5

How to set up your IRA 5

Your Right to Revoke Your IRA 7

Funding Your IRA 7

Investing in Your IRA 7

2. Checklist: Designating your beneficiary for your IRA 8

3. 2026 Limits for IRAs & Employer Plans 10

IRA and Salary Deferral Contribution limits if you are under age 50 as at year-end 2026 11

IRA and Salary Deferral Catch-up contribution if you are at least age 50 as at year-end 2026 11

Special Employer, Salary Deferral & Employer Contributions for 2026 11

2026 MAGI limits for deducting regular contributions to Traditional IRAs 12

2026 MAGI limits for making a regular contribution to a Roth IRA 13

2026 AGI limits for eligibility for Saver’s Credit: salary deferral and IRA/Roth IRA contributions 13

4. Traditional IRA Features and Benefits: Quick Reference Guide 14

5. Traditional IRA Funding Options: Quick Reference Guide 17

Regular Traditional IRA Contribution 17

Spousal Traditional IRA Contributions (Kate Bailey Hutchinson Spousal IRA) 18

Recharacterization of IRA/Roth Contribution 19

Deemed Traditional IRA Contribution 20

Payroll Deduction IRA 20

Employer-Sponsored IRA 21

Rollover from qualified plans [401(a) and 403(a)], 403(b) and governmental 457(b) plans [Not a Designated Roth Account (DRA)] 21

6. Traditional IRA Deductibility: Quick Reference Guide 24

Eligibility to deduct regular Traditional IRA Contribution 24

Determination of “Who Is an Active Participant” in an Employer Sponsored Plan 26

7. Roth IRA Features and Benefits: Quick Reference Guide 28

8. Roth IRA Funding Options: Quick Reference Guide 30

Regular Roth IRA Contribution 30

Spousal Roth IRA Contributions 31

Recharacterization of Contribution Made to Traditional IRA 31

Deemed Roth IRA Contribution 32

Payroll Deduction Roth IRA 33

Employer-Sponsored Roth IRA 33

Conversion from Traditional IRA, SEP IRA and SIMPLE IRA 33

Retirement plan rollovers from qualified plans [401(a) and 403(a)], 403(b) and governmental 457(b) plans [non-Roth] 35

Designated Roth Accounts (DRA) [Roth 401(k), Roth 403(b) and Roth Governmental 457(b)] Rollovers 37

Military Death Gratuities and Service Members’ Group Life Insurance (SGLI) Payments 37

9. Roth IRA vs. Traditional IRA: Side-by-Side Quick Reference Guide 39

IRA Contribution Limits 39

Contribution Eligibility 39

Deadline IRA/Roth Contribution 40

Eligibility to deduct contributions 40

Age Limitation 41

Saver’s Credit 42

Treatment of earnings 42

Distributions | Optional Vs. Required 42

10. Saver’s Credit: Quick Reference Guide 44

Eligibility Requirements 44

Eligible Contributions 44

Credit Amount 45

Reduction of Eligible Contributions 46

11. Checklist for Your Regular Traditional and Roth IRA Contribution 47

12. The Transfer/Rollover Lingo: Recommend when communicating with financial institutions and plan trustees 50

13. Rollover and Transfer Permissibility: Quick Reference Guide 53

Summary of rollover/transfer permitted between different types of accounts 54

Rollover and Transfer Limitations for IRAs and Employer Sponsored Plans: Quick Reference 56

14. Rollover and Transfer Rules for Nonspouse Beneficiaries: Quick Reference 63

15. Early Distribution Penalty Exceptions: Quick Reference Guide 66

Exceptions to the 10% Early Distribution Penalty ‘by Type of Account 66

16. Quick Reference Guide: Substantially Equal Periodic Payments/SEPP/72(t) 69

General Rules 69

SEPP Guidance 73

Planning Tips 74

17. Roth IRA Distribution: Tax and Penalty Treatment: Quick Reference 75

Identifying a qualified distribution 75

The Ordering Rules: How to Determine how much of a nonqualified distribution is subject to income tax and/or the 10% additional tax on pre-age 59 ½ distributions. 75

First source/Tranche 1: Your distributions come from this source first. You never get to the second source until all of these amounts have been distributed. 76

Second Source/Tranche 2: Your distributions come from this source on a first in first out (FIFO) basis. 76

Last source/Tranche 3: Your distributions come from this source only after other sources are already fully distributed. 77

Summary: Tax & Penalty Treatment of Roth IRA Distributions 78

18. Required Minimum Distributions 79

Accounts Subject to RMDs 79

RMD Related Definitions and Rules 80

RMD Start Years for Various Birthdates and Ages 82

RMD Deadlines for Account Owners 83

RMDs and Portability: Summary 85

RMD Aggregation Rules 86

Summary of RMD Aggregation Rules 86

The RMD for the Year of Death can be taken by any beneficiary 87

The RMD for the Year of Death for multiple IRAs is pro-rated among beneficiaries 87

Aggregation Rules for Annuity Portion of IRA balance 87

IRA RMD Calculation Formula 88

Uniform Lifetime Table: Effective 2022 and After 89

19. IRA Beneficiary Distribution Options: When the IRA Owner Died on or before December 31, 2019 90

Traditional IRA Beneficiary Distribution Options 90

Traditional IRA: IRA Owner Dies before the Required Beginning Date (RBD) 91

Traditional IRA: IRA Owner Died on or after the Required Beginning Date (RBD) 93

Roth IRAs: Beneficiary Distribution Options 95

20. IRA Beneficiary Distribution Options: When the IRA Owner Dies After December 31, 2019 97

New 10-Year Rule for Designated Beneficiaries 97

10-Year Rule for Eligible Designated Beneficiaries 98

When the IRA owner Dies before 2020, and the beneficiary dies after 2019 98

Notes for quick reference guides 99

Trust as Beneficiary: IRA Owner dies after 2019 99

IRA Beneficiary Options: under the SECURE Act 100

A. Beneficiary is an Eligible Designated Beneficiary: Spouse. The options are: - 100

Please note: Taking a distribution of the entire IRA balance at any time is always an option. 100

B. Beneficiary is an Eligible Designated Beneficiary: Nonspouse. The options are: 101

If the IRA owner died before the RBD, the options are 101

If the IRA owner died on/after the RBD, the options are (N/A For Roth IRA) 101

B. Beneficiary IRA: Simple 10-year rule 101

Please note: Taking a distribution of the entire IRA balance at any time is always an option. 101

C. Beneficiary is a Designated Beneficiary who is not an Eligible Designated Beneficiary. The options are: - 102

If the IRA owner died before the RBD, the options are 102

If the IRA owner died on/after the RBD, the options are (N/A For Roth IRA) 102

• Beneficiary IRA: Simple 10-year rule 102

D. Beneficiary is a Nondesignated Beneficiary. The options are: - 102

• Beneficiary IRA: Simple 5-year rule . 102

Successor Beneficiary Options 103

Special Rules for Spouse Beneficiaries 105

Life expectancy matters and definitions 105

RMD for Year of Death Must be Satisfied by Beneficiary 106

Beneficiary deadlines 106

21. Qualified Charitable Distributions 108

General Rules and Requirements for Qualified Charitable Distributions 108

QCD and RMDs 110

QCDs and Basis Amounts 112

QCDs and Deductible Traditional IRA Contributions: No Double Dipping for Tax-Free 114

22. Trump Accounts 116

23. Tax Reporting Forms and Requirements for IRAs 120

IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., 120

IRS Form 5498, IRA Contribution Information 121

IRS Form 990-T, Exempt Organization Business Income Tax Return 121

IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding 121

Form W-8CE, Notice of Expatriation and Waiver of Treaty Benefits 122

IRS Form 8606, Nondeductible IRAs 122

IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 123

IRS Form 8880, Credit for Qualified Retirement Savings Contributions 123

Appendix A. Life Expectancy Tables: Effective 2022 and After i

Single Life Expectancy-For Use by Beneficiaries: Effective for 2022 and after i

Uniform Lifetime Table: For use by Unmarried Owners, Married Owners Whose Spouses Are Not More Than 10 Years Younger, and Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs): Effective for 2022 and after iv

Appendix B: List of IRS Publications on Retirement Accounts vi

Appendix C: IRS Forms for IRAs viii

Recommended IRA Resources ix

SIMPLE, SEP, and SARSEP Answer Book x

Roth IRA Answer Book x