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CAUTION

Keep track of your basis to figure the nontaxable part of your future distributions.

Roth IRAs

For purposes of these instructions:

IRA references in these instructions. In these instructions:

• Traditional IRAs generally include traditional SEP IRAs and traditional SIMPLE IRAs, unless otherwise stated;

• Roth IRAs generally include Roth SEP IRAs and Roth SIMPLE IRAs, unless otherwise stated; and

• A Roth IRA will include Roth SEP IRAs and Roth SIMPLE IRAs unless otherwise indicated; and

• Contributions to Roth IRAs, unless stated otherwise, will not include employer contributions (including contributions made pursuant to a salary reduction arrangement) made to a Roth SEP IRA under a SEP arrangement or to a Roth SIMPLE IRA under a SIMPLE IRA plan.

• Contributions to an IRA, unless stated otherwise, will not include employer contributions (including contributions made pursuant to a salary reduction arrangement) made to a SEP IRA under a SEP arrangement or to a SIMPLE IRA under a SIMPLE IRA plan.

A Roth IRA is similar to a traditional IRA but has the following features.

Deemed IRAs A qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. If in 2025 you had a deemed IRA, use the rules for either a traditional IRA or a Roth IRA depending on which type it was. See Pub. 590-A for more details.

Traditional IRAs An IRA owner may make deductible or nondeductible contributions to their traditional IRA. You can open and make contributions to a traditional IRA if you (or, if you file a joint return, your spouse) received taxable compensation during the year. For purposes of these instructions, a traditional IRA is any IRA that isn’t a Roth IRA.

• Contributions are never deductible.

• No minimum distributions are required during the Roth IRA owner’s lifetime.

• Qualified distributions aren’t includible in income.

Qualified distribution. Generally, a qualified distribution is any distribution from your Roth IRA that meets the following requirements.

1. It is made after the 5-year period beginning with the first year for which a contribution was made to a Roth IRA (including a conversion or a rollover from a qualified retirement plan) set up for your benefit.

2. The distribution is made: a. On or after the date you reach age 59 ¹ /2, b. After your death, c. Due to your disability, or d. For qualified first-time homebuyer expenses.