Publication 590 (2007), Individual Retirement Arrangements (IRAs)

IRS Resources

Publication 590 - Additional Material

Table of Contents

Appendices

Appendices

To help you complete your tax return, use the following appendices that include worksheets, sample forms, and tables.

Appendix A — Summary Record of Traditional IRA(s) for 2007 and Worksheet for Determining Required Minimum Distributions.
Appendix B — Worksheets you use if you receive social security benefits and are subject to the IRA deduction phaseout rules. A filled-in example is included.
1. Worksheet 1, Computation of Modified AGI.
2. Worksheet 2, Computation of Traditional IRA Deduction for 2007.
3. Worksheet 3, Computation of Taxable Social Security Benefits.
4. Comprehensive Example and completed worksheets.
Appendix C — Life Expectancy Tables. These tables are included to assist you in computing your required minimum distribution amount if you have not taken all your assets from all your traditional IRAs before age 70½.
1. Table I (Single Life Expectancy).
2. Table II (Joint Life and Last Survivor Expectancy).
3. Table III (Uniform Lifetime).

Appendix A. Summary Record of Traditional IRA(s) for 2007


Name ______________________________________
I was □ covered □ not covered by my employer's retirement plan during the year.
I became 59½ on ______________________________________(month) (day) (year)
I became 70½ on ______________________________________(month) (day) (year)

Contributions
Name of traditional IRA		Date	Amount contributed for 2007		Check if rollover contribution	Fair Market Value of IRA as of December 31, 2007, from Form 5498
1.
2.
3.
4.
5.
6.
7.
8.
Total

Total contributions deducted on tax return						$
Total contributions treated as nondeductible on Form 8606						$

Distributions
Name of traditional IRA	Date	Amount of Distribution	Reason (for example, retirement, rollover, conversion, withdrawal of excess contributions)	Income earned on IRA	Taxable amount reported on income tax return	Nontaxable amount from Form 8606, line 13
1.
2.
3.
4.
5.
6.
7.
8.
Total

Basis of all traditional IRAs for 2007 and earlier years (from Form 8606, line 14)						$
Note.You should keep copies of your income tax return, and Forms W-2, 8606, and 5498.

Appendix A. (Continued) Worksheet for Determining Required Minimum Distributions

1. Age	70½	71½	72½	73½	74½
2. Year age was reached
3. Value of IRA at the close of business on December 31 of the year immediately prior to the year on line 2 ¹
4. Distribution period from Table III or life expectancy from Life Expectancy Table I or Table II ²
5. Required distribution (divide line 3 by line 4) ³


1. Age	75½	76½	77½	78½	79½
2. Year age was reached
3. Value of IRA at the close of business on December 31 of the year immediately prior to the year on line 2 ¹
4. Distribution period from Table III or life expectancy from Life Expectancy Table I or Table II ²
5. Required distribution (divide line 3 by line 4) ³


1. Age	80½	81½	82½	83½	84½
2. Year age was reached
3. Value of IRA at the close of business on December 31 of the year immediately prior to the year on line 2 ¹
4. Distribution period from Table III or life expectancy from Life Expectancy Table I or Table II ²
5. Required distribution (divide line 3 by line 4) ³


1. Age	85½	86½	87½	88½	89½
2. Year age was reached
3. Value of IRA at the close of business on December 31 of the year immediately prior to the year on line 2 ¹
4. Distribution period from Table III or life expectancy from Life Expectancy Table I or Table II ²
5. Required distribution (divide line 3 by line 4) ³

¹If you have more than one IRA, you must figure the required distribution separately for each IRA.
²Use the appropriate life expectancy or distribution period for each year and for each IRA.
³If you have more than one IRA, you must withdraw an amount equal to the total of the required distributions figured for each IRA. You can, however, withdraw the total from one IRA or from more than one IRA.

Appendix B. Worksheets for Social Security Recipients Who Contribute to a Traditional IRA

If you receive social security benefits, have taxable compensation, contribute to your traditional IRA, and you or your spouse is covered by an employer retirement plan, complete the following worksheets. (See Are You Covered by an Employer Plan? in chapter 1.) Use Worksheet 1 to figure your modified adjusted gross income. This amount is needed in the computation of your IRA deduction, if any, which is figured using Worksheet 2. The IRA deduction figured using Worksheet 2 is entered on your tax return.
Worksheet 1
Computation of Modified AGI
(For use only by taxpayers who receive social security benefits)
	Filing Status — Check only one box: □ A. Married filing jointly □ B. Single, Head of Household, Qualifying Widow(er), or Married filing separately and lived apart from your spouse during the entire year □ C. Married filing separately and lived with your spouse at any time during the year
1.	Adjusted gross income (AGI) from Form 1040 or Form 1040A (not taking into account any social security benefits from Form SSA-1099 or RRB-1099, any deduction for contributions to a traditional IRA, any student loan interest deduction, any tuition and fees deduction, any domestic production activities deduction, or any exclusion of interest from savings bonds to be reported on Form 8815)	1.
2.	Enter the amount in box 5 of all Forms SSA-1099 and Forms RRB-1099	2.
3.	Enter one-half of line 2	3.
4.	Enter the amount of any foreign earned income exclusion, foreign housing exclusion, U.S. possessions income exclusion, exclusion of income from Puerto Rico you claimed as a bona fide resident of Puerto Rico, or exclusion of employer-provided adoption benefits	4.
5.	Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 1040A	5.
6.	Add lines 1, 3, 4, and 5	6.
7.	Enter the amount listed below for your filing status. $32,000 if you checked box A above. $25,000 if you checked box B above. $0 if you checked box C above.	7.
8.	Subtract line 7 from line 6. If zero or less, enter 0 on this line	8.
9.	If line 8 is zero, stop here. None of your social security benefits are taxable. If line 8 is more than 0, enter the amount listed below for your filing status. $12,000 if you checked box A above. $9,000 if you checked box B above. $0 if you checked box C above	9.
10.	Subtract line 9 from line 8. If zero or less, enter 0	10.
11.	Enter the smaller of line 8 or line 9	11.
12.	Enter one-half of line 11	12.
13.	Enter the smaller of line 3 or line 12	13.
14.	Multiply line 10 by .85. If line 10 is zero, enter 0	14.
15.	Add lines 13 and 14	15.
16.	Multiply line 2 by .85	16.
17.	Taxable benefits to be included in modified AGI for traditional IRA deduction purposes. Enter the smaller of line 15 or line 16	17.
18.	Enter the amount of any employer-provided adoption benefits exclusion and any foreign earned income exclusion and foreign housing exclusion or deduction that you claimed	18.
19.	Modified AGI for determining your reduced traditional IRA deduction — add lines 1, 17, and 18. Enter here and on line 2 of Worksheet 2, next	19.

Appendix B. (Continued)

Worksheet 2
Computation of Traditional IRA Deduction For 2007
(For use only by taxpayers who receive social security benefits)
	IF your filing status is ...	AND your modified AGI is over ...	THEN enter on line 1 below ...

	married filing jointly or qualifying widow(er)	$83,000*		$103,000

	married filing jointly (you are not covered by an employer plan but your spouse is)	$156,000*		$166,000

	single, or head of household	$52,000*		$62,000

	married filing separately**	$0*		$10,000

	If your modified AGI is not* over this amount, you can take an IRA deduction for your contributions of up to the lesser of $4,000 ($5,000 if you are age 50 or older or $7,000 for certain employer bankruptcies) or your taxable compensation. Skip this worksheet, proceed to Worksheet 3, and enter your IRA deduction on line 2 of Worksheet 3. If you did not live with your spouse at any time during the year, consider your filing status as single. Note.** If you were married and you or your spouse worked and you both contributed to IRAs, figure the deduction for each of you separately. Certain employer bankruptcies. See Catch-up contributions in certain employer bankruptcies in chapter 1 for instructions to complete lines 4 and 6 of this worksheet.

1.	Enter the applicable amount from above		1.
2.	Enter your modified AGI from Worksheet 1, line 19		2.
	Note. If line 2 is equal to or more than the amount on line 1, stop here; your traditional IRA contributions are not deductible. Proceed to Worksheet 3.
3.	Subtract line 2 from line 1		3.
4.	Multiply line 3 by the percentage below that applies to you. If the result is not a multiple of $10, round it to the next highest multiple of $10. (For example, $611.40 is rounded to $620.) However, if the result is less than $200, enter $200.
	Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 20% (.20) (by 25% (.25) if you are age 50 or older). All others, multiply line 3 by 40% (.40) (by 50% (.50) if you are age 50 or older).		4.
5.	Enter your compensation minus any deductions on Form 1040, line 27 (one-half of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). If you are the lower-income spouse, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year		5.
6.	Enter contributions you made, or plan to make, to your traditional IRA for 2007, but do not enter more than $4,000 ($5,000 if you are age 50 or older)		6.
7.	Deduction. Compare lines 4, 5, and 6. Enter the smallest amount here (or a smaller amount if you choose). Enter this amount on the Form 1040 or 1040A line for your IRA. (If the amount on line 6 is more than the amount on line 7, complete line 8.)		7.
8.	Nondeductible contributions. Subtract line 7 from line 5 or 6, whichever is smaller. Enter the result here and on line 1 of your Form 8606, Nondeductible IRAs.		8.

Appendix B. (Continued)

Worksheet 3
Computation of Taxable Social Security Benefits
(For use by taxpayers who receive social security benefits and take a traditional IRA deduction)
	Filing Status — Check only one box:

	□ A. Married filing jointly

	□ B. Single, Head of Household, Qualifying Widow(er), or Married filing separately and lived apart from your spouse during the entire year

	□ C. Married filing separately and lived with your spouse at any time during the year

1.	Adjusted gross income (AGI) from Form 1040 or Form 1040A (not taking into account any IRA deduction, any student loan interest deduction, any tuition and fees deduction, any domestic production activities deduction, any social security benefits from Form SSA-1099 or RRB-1099, or any exclusion of interest from savings bonds to be reported on Form 8815)	1.
2.	Deduction(s) from line 7 of Worksheet(s) 2	2.
3.	Subtract line 2 from line 1	3.
4.	Enter amount in box 5 of all Forms SSA-1099 and Forms RRB-1099	4.
5.	Enter one-half of line 4	5.
6.	Enter the amount of any foreign earned income exclusion, foreign housing exclusion, exclusion of income from U.S. possessions, exclusion of income from Puerto Rico you claimed as a bona fide resident of Puerto Rico, or exclusion of employer-provided adoption benefits	6.
7.	Enter the amount of any tax-exempt interest reported on line 8b of Form 1040 or 1040A	7.
8.	Add lines 3, 5, 6, and 7	8.
9.	Enter the amount listed below for your filing status. $32,000 if you checked box A above. $25,000 if you checked box B above. $0 if you checked box C above.	9.
10.	Subtract line 9 from line 8. If zero or less, enter 0 on this line.	10.
11.