{ "id": "RL34397", "type": "CRS Report", "typeId": "RL", "number": "RL34397", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source_dir": "crsreports.congress.gov", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "retrieved": "2022-03-16T04:03:46.908061", "id": "RL34397_34_2022-02-15", "formats": [ { "filename": "files/2022-02-15_RL34397_226b78aee01b9d719659b581c7e487d1a7d1e4ae.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/RL/RL34397/34", "sha1": "226b78aee01b9d719659b581c7e487d1a7d1e4ae" }, { "format": "HTML", "filename": "files/2022-02-15_RL34397_226b78aee01b9d719659b581c7e487d1a7d1e4ae.html" } ], "date": "2022-02-15", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "RL", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=RL34397", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "retrieved": "2022-03-16T04:03:46.906739", "id": "RL34397_32_2021-02-03", "formats": [ { "filename": "files/2021-02-03_RL34397_eee3fa9871509fa7e903da733e9641d125617b53.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/RL/RL34397/32", "sha1": "eee3fa9871509fa7e903da733e9641d125617b53" }, { "format": "HTML", "filename": "files/2021-02-03_RL34397_eee3fa9871509fa7e903da733e9641d125617b53.html" } ], "date": "2021-02-03", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "RL", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=RL34397", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "retrieved": "2022-03-16T04:03:46.906084", "id": "RL34397_31_2020-08-20", "formats": [ { "filename": "files/2020-08-20_RL34397_8c8ca7f32b47170e25317df25a38ed036ee65937.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/RL/RL34397/31", "sha1": "8c8ca7f32b47170e25317df25a38ed036ee65937" }, { "format": "HTML", "filename": "files/2020-08-20_RL34397_8c8ca7f32b47170e25317df25a38ed036ee65937.html" } ], "date": "2020-08-20", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "RL", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=RL34397", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 618649, "date": "2020-03-02", "retrieved": "2020-03-06T17:05:54.985847", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": "In response to concerns over the adequacy of retirement savings, Congress has created incentives to encourage individuals to save for retirement through a variety of retirement plans. Some retirement plans are employer-sponsored, such as 401(k) plans, and others are established by individual employees, such as Individual Retirement Accounts (IRAs).\nThis report describes the primary features of two common retirement savings accounts that are available to certain individuals\u2014traditional and Roth IRAs. Although the accounts have many features in common, they differ in some important aspects. Both traditional and Roth IRAs offer tax incentives to encourage individuals to save for retirement. Contributions to traditional IRAs may be tax deductible for taxpayers who (1) are not covered by a retirement plan at their place of employment or (2) have income below specified limits. Contributions to Roth IRAs are not tax deductible and eligibility is limited to those with incomes under specified limits.\nThe tax treatment of distributions from traditional and Roth IRAs differs. Distributions from traditional IRAs are generally included in taxable income, whereas certain distributions from Roth IRAs are not included in taxable income. Some distributions may be subject to an additional 10% tax penalty, unless the distribution is for a reason specified in the Internal Revenue Code (e.g., distributions from IRAs after the individual is aged 59\u00bd or older are not subject to the early withdrawal penalty).\nIndividuals may roll over eligible distributions from other retirement accounts (such as an account balance from a 401(k) plan upon leaving an employer) into IRAs. Rollovers preserve retirement savings by allowing investment earnings on the funds in the retirement accounts to accrue on a tax-deferred basis, in the case of traditional IRAs, or a tax-free basis, in the case of Roth IRAs.\nThe Retirement Savings Contribution Credit (also known as the Saver\u2019s Credit) is a nonrefundable tax credit of up to $1,000. It was authorized in 2001 to encourage retirement savings among individuals with income under specified limits.\nThis report explains IRAs\u2019 eligibility requirements, contribution limits, tax deductibility of contributions, and withdrawal rules, and it provides data on the accounts\u2019 holdings. It also describes the Saver\u2019s Credit and provisions enacted after the Gulf of Mexico hurricanes in 2005, the Midwestern storms in 2008, the hurricanes in 2012 and 2017, the California wildfires in 2017, and certain other federally declared disasters occurring on or after January 1, 2018, to exempt distributions to those affected from the 10% early withdrawal penalty.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/RL34397", "sha1": "c36291228d30cb5854321720b142a25d40cb3575", "filename": "files/20200302_RL34397_c36291228d30cb5854321720b142a25d40cb3575.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/RL34397", "sha1": "7c19958bbdd1a4ecb1b12dfd13633b6e4c57dad2", "filename": "files/20200302_RL34397_7c19958bbdd1a4ecb1b12dfd13633b6e4c57dad2.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4869, "name": "Pensions & IRAs" } ] }, { "source": "EveryCRSReport.com", "id": 584392, "date": "2018-05-11", "retrieved": "2018-08-31T13:56:15.605798", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": "In response to concerns over the adequacy of retirement savings, Congress has created incentives to encourage individuals to save more for retirement through a variety of retirement plans. Some retirement plans are employer-sponsored, such as 401(k) plans, and others are established by individual employees, such as Individual Retirement Accounts (IRAs).\nThis report describes the primary features of two common retirement savings accounts that are available to individuals. Although the accounts have many features in common, they differ in some important aspects. Both traditional and Roth IRAs offer tax incentives to encourage individuals to save for retirement. Contributions to traditional IRAs may be tax-deductible for taxpayers who (1) are not covered by a retirement plan at their place of employment or (2) have income below specified limits. Contributions to Roth IRAs are not tax-deductible and eligibility is limited to those with incomes under specified limits.\nThe tax treatment of distributions from traditional and Roth IRAs differs. Distributions from traditional IRAs are generally included in taxable income whereas distributions from Roth IRAs are not included in taxable income. Some distributions may be subject to an additional 10% tax penalty, unless the distribution is for a reason specified in the Internal Revenue Code (for example, distributions from IRAs after the individual is aged 59\u00bd or older are not subject to the early withdrawal penalty).\nIndividuals may roll over eligible distributions from other retirement accounts (such as an account balance from a 401(k) plan upon leaving an employer) into IRAs. Rollovers preserve retirement savings by allowing investment earnings on the funds in the retirement accounts to accrue on a tax-deferred basis, in the case of traditional IRAs, or a tax-free basis, in the case of Roth IRAs. A provision in P.L. 115-97 (originally called the Tax Cuts and Jobs Act) repealed a special rule that allowed IRA contributions to one type of IRA to be recharacterized as contributions to the other type of IRA.\nThe Retirement Savings Contribution Credit (also known as the Saver\u2019s Credit) is a nonrefundable tax credit of up to $1,000. It was authorized in 2001 to encourage retirement savings among individuals with income under specified limits.\nThis report explains the eligibility requirements, contribution limits, tax deductibility of contributions, and rules for withdrawing funds from the accounts, and provides data on the account holdings. It also describes the Saver\u2019s Credit and provisions enacted after the Gulf of Mexico hurricanes in 2005, the Midwestern storms in 2008, and the hurricanes in 2012 and 2017 to exempt distributions to those affected by the disasters from the 10% early withdrawal penalty.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL34397", "sha1": "849c9bab0a866e82f2c76f0e10a5d34cd7aeb2bb", "filename": "files/20180511_RL34397_849c9bab0a866e82f2c76f0e10a5d34cd7aeb2bb.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL34397", "sha1": "3a10f146f258cb5b0e8dca415b7949b8fa55efe6", "filename": "files/20180511_RL34397_3a10f146f258cb5b0e8dca415b7949b8fa55efe6.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4869, "name": "Pensions & IRAs" } ] }, { "source": "EveryCRSReport.com", "id": 452097, "date": "2016-04-27", "retrieved": "2016-11-28T22:18:07.146565", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": "In response to concerns over the adequacy of retirement savings, Congress has created incentives to encourage individuals to save more for retirement through a variety of retirement plans. Some retirement plans are employer-sponsored, such as 401(k) plans, and others are established by individual employees, such as Individual Retirement Accounts (IRAs).\nThis report describes the primary features of two common retirement savings accounts that are available to individuals. Although the accounts have many features in common, they differ in some important aspects. Both traditional and Roth IRAs offer tax incentives to encourage individuals to save for retirement. Contributions to traditional IRAs may be tax-deductible for taxpayers who (1) are not covered by a retirement plan at their place of employment or (2) have income below specified limits. Contributions to Roth IRAs are not tax-deductible and eligibility is limited to those with incomes under specified limits.\nThe tax treatment of distributions from traditional and Roth IRAs differs. Distributions from traditional IRAs are generally included in taxable income whereas distributions from Roth IRAs are not included in taxable income. Some distributions may be subject to an additional 10% tax penalty, unless the distribution is for a reason specified in the Internal Revenue Code (for example, distributions from IRAs after the individual is aged 59 \u00bd or older are not subject to the early withdrawal penalty).\nIndividuals may rollover eligible distributions from other retirement accounts (such as an account balance from a 401(k) plan upon leaving an employer) into IRAs. Rollovers preserve retirement savings by allowing investment earnings on the funds in the retirement accounts to accrue on a tax-deferred, in the case of traditional IRAs, or a tax-free basis, in the case of Roth IRAs.\nThe Retirement Savings Contribution Credit (also known as the Saver\u2019s Credit) is a non-refundable tax credit of up to $1,000. It was authorized in 2001 to encourage retirement savings among individuals with income under specified limits.\nThis report explains the eligibility requirements, contribution limits, tax deductibility of contributions, rules for withdrawing funds from the accounts, and provides data on the account holdings. It also describes the Saver\u2019s Credit and provisions enacted after the Gulf of Mexico hurricanes in 2005 and the Midwestern storms in 2008 to exempt distributions to those affected by the disasters from the 10% early withdrawal penalty.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL34397", "sha1": "df30940401f87691def47d1f93fe57d4a8f13899", "filename": "files/20160427_RL34397_df30940401f87691def47d1f93fe57d4a8f13899.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL34397", "sha1": "0e91ebbf60a60d8e4ed90268c1bbf28979ca7243", "filename": "files/20160427_RL34397_0e91ebbf60a60d8e4ed90268c1bbf28979ca7243.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4869, "name": "Pensions & IRAs" } ] }, { "source": "EveryCRSReport.com", "id": 438208, "date": "2015-02-12", "retrieved": "2016-04-06T19:29:27.773549", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": "In response to concerns over the adequacy of retirement savings, Congress has created incentives to encourage individuals to save more for retirement through a variety of retirement plans. Some retirement plans are employer-sponsored, such as 401(k) plans, and others are established by individual employees, such as Individual Retirement Accounts (IRAs).\nThis report describes the primary features of two common retirement savings accounts that are available to individuals. Although the accounts have many features in common, they differ in some very important aspects. Both traditional and Roth IRAs offer tax incentives to encourage individuals to save for retirement. Contributions to traditional IRAs may be tax-deductible for taxpayers who (1) are not covered by a retirement plan at their place of employment or (2) have income below specified limits. Contributions to Roth IRAs are not tax-deductible and eligibility is limited to those with incomes under specified limits.\nThe tax treatment of distributions from traditional and Roth IRAs differs. Distributions from traditional IRAs are generally included in taxable income whereas distributions from Roth IRAs are not included in taxable income. Some distributions may be subject to an additional 10% tax penalty, unless the distribution is for a reason specified in the Internal Revenue Code (for example, distributions from IRAs after the individual is aged 59 \u00bd or older are not subject to the early withdrawal penalty).\nIndividuals may rollover eligible distributions from other retirement accounts (such as an account balance from a 401(k) plan upon leaving an employer) into IRAs. Rollovers preserve retirement savings by allowing investment earnings on the funds in the retirement accounts to accrue on a tax-deferred, in the case of traditional IRAs, or a tax-free basis, in the case of Roth IRAs.\nThe Retirement Savings Contribution Credit (also known as the Saver\u2019s Credit) is a non-refundable tax credit of up to $1,000. It was authorized in 2001 to encourage retirement savings among individuals with income under specified limits.\nThis report explains the eligibility requirements, contribution limits, tax deductibility of contributions, and rules for withdrawing funds from the accounts. It also describes the Saver\u2019s Credit and provisions enacted after the Gulf of Mexico hurricanes in 2005 and the Midwestern storms in 2008 to exempt distributions to those affected by the disasters from the 10% early withdrawal penalty.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL34397", "sha1": "d9f9e99e7449b43fb953b06b79beda17dd135e2d", "filename": "files/20150212_RL34397_d9f9e99e7449b43fb953b06b79beda17dd135e2d.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL34397", "sha1": "eed14b29ea39c20316dc38bf8fa1a9612b22b82c", "filename": "files/20150212_RL34397_eed14b29ea39c20316dc38bf8fa1a9612b22b82c.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 446, "name": "Pensions and Retirement Savings" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc818963/", "id": "RL34397_2013Jan30", "date": "2013-01-30", "retrieved": "2016-03-19T13:57:26", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130130_RL34397_b4b7385a61632235df543b48ff9b59e74e2ba3f0.pdf" }, { "format": "HTML", "filename": "files/20130130_RL34397_b4b7385a61632235df543b48ff9b59e74e2ba3f0.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc808257/", "id": "RL34397_2010Jan28", "date": "2010-01-28", "retrieved": "2016-03-19T13:57:26", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100128_RL34397_8a499ac87cf4eef5870abac08657b3f1eb5f6db4.pdf" }, { "format": "HTML", "filename": "files/20100128_RL34397_8a499ac87cf4eef5870abac08657b3f1eb5f6db4.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc811531/", "id": "RL34397_2008Oct08", "date": "2008-10-08", "retrieved": "2016-03-19T13:57:26", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20081008_RL34397_71aae5674315aec23db8e9a05f5dc6a2e9e5c94d.pdf" }, { "format": "HTML", "filename": "files/20081008_RL34397_71aae5674315aec23db8e9a05f5dc6a2e9e5c94d.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc813553/", "id": "RL34397_2008Mar03", "date": "2008-03-03", "retrieved": "2016-03-19T13:57:26", "title": "Traditional and Roth Individual Retirement Accounts (IRAs): A Primer", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20080303_RL34397_7ccc7a88165e9c34bab1ba01e6cf1b0a74a57002.pdf" }, { "format": "HTML", "filename": "files/20080303_RL34397_7ccc7a88165e9c34bab1ba01e6cf1b0a74a57002.html" } ], "topics": [] } ], "topics": [ "Domestic Social Policy" ] }