26 U.S.C. § 408A: Roth IRAs

Except as provided in this section, a Roth IRA shall be treated for purposes of this title in the same manner as an individual retirement plan. For purposes of this title, the term “Roth IRA” means an individual retirement plan (as defined in section 7701(a)(37)) which is designated (in such manner as the Secretary may prescribe) at the time of establishment of the plan as a Roth IRA. Such designation shall be made in such manner as the Secretary may prescribe. No deduction shall be allowed under section 219 for a contribution to a Roth IRA. the maximum amount allowable as a deduction under section 219 with respect to such individual for such taxable year (computed without regard to subsection (g) of such section), over the aggregate amount of contributions for such taxable year to all other individual retirement plans (other than Roth IRAs) maintained for the benefit of the individual. the taxpayer’s adjusted gross income for such taxable year, over the applicable dollar amount, bears to $15,000 ($10,000 in the case of a joint return or a married individual filing a separate return). adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account, and in the case of a taxpayer filing a joint return, $150,000, in the case of any other taxpayer (other than a married individual filing a separate return), $95,000, and in the case of a married individual filing a separate return, zero. Section 219(g)(4) shall apply for purposes of this paragraph. such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2005” for “calendar year 2016” in subparagraph (A)(ii) thereof. the amount of contributions described in section 529(c)(3)(E) for the taxable year, or the amount of the reduction determined under such subparagraph (determined without regard to this subparagraph). Section 401(a)(9)(A). The incidental death benefit requirements of section 401(a). No rollover contribution may be made to a Roth IRA unless it is a qualified rollover contribution. A qualified rollover contribution shall not be taken into account for purposes of paragraph (2). Clause (i) shall not apply to any qualified rollover contribution described in subsection (e)(1)(C). For purposes of this section, the rule of section 219(f)(3) shall apply. Any qualified distribution from a Roth IRA shall not be includible in gross income. made on or after the date on which the individual attains age 59½, made to a beneficiary (or to the estate of the individual) on or after the death of the individual, attributable to the individual’s being disabled (within the meaning of section 72(m)(7)), or which is a qualified special purpose distribution. A payment or distribution from a Roth IRA shall not be treated as a qualified distribution under subparagraph (A) if such payment or distribution is made within the 5-taxable year period beginning with the first taxable year for which the individual made a contribution to a Roth IRA (or such individual’s spouse, or employer in the case of a simple retirement account (as defined in section 408(p)) or simplified employee pension (as defined in section 408(k)), made a contribution to a Roth IRA) established for such individual. The term “qualified distribution” shall not include any distribution of any contribution described in section 408(d)(4) and any net income allocable to the contribution. there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution, section 72(t) shall not apply, and unless the taxpayer elects not to have this clause apply, any amount required to be included in gross income for any taxable year beginning in 2010 by reason of this paragraph shall be so included ratably over the 2-taxable-year period beginning with the first taxable year beginning in 2011. This paragraph shall apply to a distribution from an eligible retirement plan (as defined by section 402(c)(8)(B)) maintained for the benefit of an individual which is contributed to a Roth IRA maintained for the benefit of such individual in a qualified rollover contribution. This paragraph shall not apply to a distribution which is a qualified rollover contribution from a Roth IRA or a qualified rollover contribution from a designated Roth account which is a rollover contribution described in section 402A(c)(3)(A). The conversion of an individual retirement plan (other than a Roth IRA) to a Roth IRA shall be treated for purposes of this paragraph as a distribution to which this paragraph applies. Trustees of Roth IRAs, trustees of individual retirement plans, persons subject to section 6047(d)(1), or all of the foregoing persons, whichever is appropriate, shall include such additional information in reports required under section 408(i) or 6047 as the Secretary may require to ensure that amounts required to be included in gross income under subparagraph (A) are so included. The amount otherwise required to be included in gross income for any taxable year beginning in 2010 or the first taxable year in the 2-year period under subparagraph (A)(iii) shall be increased by the aggregate distributions from Roth IRAs for such taxable year which are allocable under paragraph (4) to the portion of such qualified rollover contribution required to be included in gross income under subparagraph (A)(i). The amount required to be included in gross income for any taxable year under subparagraph (A)(iii) shall not exceed the aggregate amount required to be included in gross income under subparagraph (A)(iii) for all taxable years in the 2-year period (without regard to subclause (I)) reduced by amounts included for all preceding taxable years. If the individual required to include amounts in gross income under such subparagraph dies before all of such amounts are included, all remaining amounts shall be included in gross income for the taxable year which includes the date of death. If the spouse of the individual described in subclause (I) acquires the individual’s entire interest in any Roth IRA to which such qualified rollover contribution is properly allocable, the spouse may elect to treat the remaining amounts described in subclause (I) as includible in the spouse’s gross income in the taxable years of the spouse ending with or within the taxable years of such individual in which such amounts would otherwise have been includible. Any such election may not be made or changed after the due date for the spouse’s taxable year which includes the date of death. any portion of a distribution from a Roth IRA is properly allocable to a qualified rollover contribution described in this paragraph; and such distribution is made within the 5-taxable year period beginning with the taxable year in which such contribution was made, Clause (i) shall apply only to the extent of the amount of the qualified rollover contribution includible in gross income under subparagraph (A)(i). Section 408(d)(2) shall be applied separately with respect to Roth IRAs and other individual retirement plans. from contributions to the extent that the amount of such distribution, when added to all previous distributions from the Roth IRA, does not exceed the aggregate contributions to the Roth IRA; and Contributions other than qualified rollover contributions to which paragraph (3) applies. Qualified rollover contributions to which paragraph (3) applies on a first-in, first-out basis. For purposes of this section, the term “qualified special purpose distribution” means any distribution to which subparagraph (F) of section 72(t)(2) applies. Except as provided by the Secretary, if, on or before the due date for any taxable year, a taxpayer transfers in a trustee-to-trustee transfer any contribution to an individual retirement plan made during such taxable year from such plan to any other individual retirement plan, then, for purposes of this chapter, such contribution shall be treated as having been made to the transferee plan (and not the transferor plan). Subparagraph (A) shall not apply to the transfer of any contribution unless such transfer is accompanied by any net income allocable to such contribution. Subparagraph (A) shall apply to the transfer of any contribution only to the extent no deduction was allowed with respect to the contribution to the transferor plan. Subparagraph (A) shall not apply in the case of a qualified rollover contribution to which subsection (d)(3) applies (including by reason of subparagraph (C) thereof). For purposes of this subsection, the due date for any taxable year is the date prescribed by law (including extensions of time) for filing the taxpayer’s return for such taxable year. to a Roth IRA from another such account, in the case of an individual retirement plan, such rollover contribution meets the requirements of section 408(d)(3), and in the case of any eligible retirement plan (as defined in section 402(c)(8)(B) other than clauses (i) and (ii) thereof), such rollover contribution meets the requirements of section 402(c), 403(b)(8), or 457(e)(16), as applicable, and from a qualified tuition program to the extent provided in section 529(c)(3)(E). For purposes of section 408(d)(3)(B), there shall be disregarded any qualified rollover contribution from an individual retirement plan (other than a Roth IRA) to a Roth IRA. The earnings and contributions of any qualified tuition program from which a qualified rollover contribution is made under subparagraph (C) shall be treated in the same manner as the earnings and contributions of a Roth IRA from which a qualified rollover contribution is made under subparagraph (A). the sum of the amounts received during such period by such individual under such sections with respect to such person, reduced by the amounts so received which were contributed to a Coverdell education savings account under section 530(d)(9). Section 408(d)(3)(B) shall not apply with respect to amounts treated as a rollover by subparagraph (A). For purposes of applying section 72 in the case of a distribution which is not a qualified distribution, the amount treated as a rollover by reason of subparagraph (A) shall be treated as investment in the contract. In the case of any payment or distribution out of a simple retirement account (as defined in section 408(p)) with respect to which an election has been made under section 408(p)(12) and to which 72(t)(6) applies, the term “qualified rollover contribution” shall not include any payment or distribution paid into an account other than another simple retirement account (as so defined). Except as provided by paragraphs (2) and (3), the amendments made by this section [amending this section and section 530 of this title ] shall apply with respect to deaths from injuries occurring on or after the date of the enactment of this Act [ June 17, 2008 ]. The amendments made by this section shall apply to any contribution made pursuant to section 408A(e)(2) or 530(d)(5) of the Internal Revenue Code of 1986, as amended by this Act, with respect to amounts received under section 1477 of title 10 , United States Code, or under section 1967 of title 38 of such Code, for deaths from injuries occurring on or after October 7, 2001 , and before the date of the enactment of this Act if such contribution is made not later than 1 year after the date of the enactment of this Act. Section 408A(e)(1) of the Internal Revenue Code of 1986 (as in effect after the amendments made by subsection (b)) shall apply to taxable years beginning after December 31, 2007 .” If a qualified airline employee receives any airline payment amount and transfers any portion of such amount to a Roth IRA within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act [ Dec. 23, 2008 ]), then such amount (to the extent so transferred) shall be treated as a qualified rollover contribution described in section 408A(e) of the Internal Revenue Code of 1986, and the limitations described in section 408A(c)(3) of such Code shall not apply to any such transfer. under the approval of an order of a Federal bankruptcy court in a case filed after September 11, 2001 , and before January 1, 2007 , and in respect of the qualified airline employee’s interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. An airline payment amount shall not include any amount payable on the basis of the carrier’s future earnings or profits. is a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code, and was terminated or became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006 [ Pub. L. 109–280 , 26 U.S.C. 430 note]. to the Secretary of the Treasury, the names of the qualified airline employees to whom such amounts were paid, and to the Secretary and to such employees, the years and the amounts of the payments. This section shall apply to transfers made after the date of the enactment of this Act [ Dec. 23, 2008 ] with respect to airline payment amounts paid before, on, or after such date.”