Publication 590-B (2023): Distributions from Individual Retirement Arrangements (IRAs)

Publication 590-B, also referred to as 590-b, is an informational resource published by the Internal Revenue Service (IRS) that explains the rules and regulations regarding distributions (withdrawals) from Individual Retirement Arrangements (IRAs).

What is Publication 590-B?

Publication 590-B, also referred to as 590-b, is an official resource from the Internal Revenue Service (IRS) that provides comprehensive information on withdrawals, or distributions, from Individual Retirement Arrangements (IRAs). It guides individuals on understanding the rules, tax implications, and proper handling of IRA distributions.

What's the Purpose of Publication 590-B?

This publication outlines the different types of IRA distributions, how to calculate the required minimum distributions (RMDs) you must take once you reach a certain age, and the tax consequences associated with various withdrawal scenarios.

What does the Publication 590-B cover?

Types of IRAs: Explains different IRA types (traditional, Roth, SEP, SIMPLE) and their distribution rules.

Taxation of Distributions: Covers how withdrawals are taxed depending on the IRA type and distribution type (regular, qualified, early, etc.).

Required Minimum Distributions (RMDs): Details the mandatory minimum amount you must withdraw from your traditional IRA starting at age 73, including calculation methods based on life expectancy tables.

Other Distributions: Discusses non-RMD withdrawals, including penalty-free options like qualified distributions for disability or certain education expenses, and the 10% penalty for early withdrawals before age 59½ (exceptions apply).

Reporting and Withholding: Explains how to report IRA distributions on your tax return and potential tax withholding options.

Beneficiary Designations: Outlines the importance of designating beneficiaries for your IRA and how changes can impact distributions.

Rollovers and Transfers: Covers transferring funds between different IRA types within certain guidelines.

For the current year's Publication 590-B, click here.

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