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IRS Publication 590

Candlefocus Editor
IRS Publication 590 is an essential source of information for anyone considering opening an individual retirement account. This document, which is produced and maintained by the Internal Revenue Service (IRS), explains the tax rules and guidelines that everyone can use when making IRA contributions, receiving distributions, and planning for retirement savings.

Part A of IRS Publication 590 covers IRAs in general, and includes an introduction to what IRAs are, which types of IRAs can be set up, what the annual individual contribution limit is, and additional information on eligibility. This document is typically used when setting up an IRA, to ensure complies with the latest IRS rules.

Part B of IRS Publication 590 covers distributions, including the rules and tax liabilities associated with withdrawing money from an IRA, how to determine qualified distributions, and more. Knowing the rules for distributions is important for calculating how much of your account balance can actually be withdrawn from an account without any tax burden.

Each year, IRS Publication 590 is regularly updated with any changes that the IRS has made to the applicable tax rules and regulations. As such, it is essential to review the latest version of the document, whenever making new IRA contributions, planning for future distributions, or evaluating your current retirement savings plan.

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