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

Publication 590-B (also referred to as "590-b") is an official document by the Internal Revenue Service (IRS) that provides comprehensive information on distributions from Individual Retirement Arrangements (IRAs). It explains the tax implications, rules, and regulations surrounding withdrawals from your IRA savings.

What's in Publication 590-B?

This publication covers various aspects of IRA distributions, including:

Types of IRAs: Explains the differences between traditional IRAs, Roth IRAs, and other IRA variations, and how distribution rules differ for each type.

Tax treatment: Explains how distributions are taxed depending on the type of IRA and whether they qualify as qualified distributions (meeting specific requirements for tax-free or favorable treatment).

Required minimum distributions (RMDs): Details the IRS rules mandating minimum withdrawals from traditional IRAs starting at a certain age (generally 72). It explains how to calculate your RMD and the consequences of failing to take it.

Early distributions: Explains the penalties and taxes associated with withdrawing money from your IRA before age 59½, with exceptions for specific situations like disability, medical emergencies, and qualified higher education expenses.

Inherited IRAs: Provides guidance on how beneficiaries handle inherited IRAs, including distribution options and tax implications.

Reporting and recordkeeping: Explains how to report IRA distributions on your tax return and the importance of maintaining accurate records for your IRA accounts.