p590b--2016.pdf

Here are the key points summarized:

Introduction

• Publication 590-B explains rules for individual retirement accounts (IRAs)
• Provides guidance on IRA distributions, including required minimum distributions (RMDs)

IRA Distributions

• RMDs must be taken by April 1 of each year after turning 72
• Life expectancy tables in Appendix B help determine RMD amounts

Traditional IRAs

• Contributions are tax-deductible up to a certain amount
• Earnings grow tax-deferred, and withdrawals are taxed as ordinary income
• Inherited IRAs: beneficiaries must take RMDs, but can stretch distributions over their own life expectancy

Roth IRAs

• Contributions are made with after-tax dollars, so earnings grow tax-free
• Withdrawals are tax-free if certain conditions are met (e.g., age 59 1/2 or qualified education expenses)
• Inherited Roth IRAs: beneficiaries can take RMDs, but must follow specific rules

Penalties and Exemptions

• Penalties apply for early withdrawals before age 59 1/2, unless exempt
• Exemptions include disability, first-time homebuyers, higher education expenses, and medical insurance

Other Topics

• IRA investments in collectibles or life insurance policies
• Pledging an IRA as security
• Reporting and filing requirements for IRAs
• Tax help resources and TTY/TDD information

Overall, this publication provides guidance on the rules and regulations surrounding individual retirement accounts (IRAs), including traditional IRAs and Roth IRAs.