IRS Publication 590: Individual Retirement Arrangements (IRAs)
DEFINITION of 'IRS Publication 590: Individual Retirement Arrangements (IRAs)'
A document published by the Internal Revenue Service (IRS) that provides information on individual retirement arrangements (IRAs), including how to set up an IRA, how to contribute, how much can be contributed, how to treat distributions and how to take tax deductions for contributions made to IRAs. IRS Publication 590 also provides information on penalties that taxpayers might face if IRA regulations are not followed properly.
BREAKING DOWN 'IRS Publication 590: Individual Retirement Arrangements (IRAs)'
There are significant differences between the various retirement accounts covered in IRS Publication 590, including Roth IRAs and traditional IRAs, especially when it comes to the tax treatment of contributions. The IRS allows taxpayers who make eligible contributions to a IRA, 403(b), 401(k) or SEP to take a tax credit of up to $1,000.