Insights

The IRS recently released the 2019 Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), to be used to prepare 2018 returns. This publication details rules for receiving distributions (withdrawals) from a traditional or Roth IRA. The instructions summarize the changes for 2018 which include:

• No recharacterizations of conversions made in 2018 or later.
• Miscellaneous itemized deductions are no longer permitted.
• The 2018 Form 1040 has been redesigned with additional schedules to be used for more complex returns.
• Form 1040A and 1040-EZ are no longer available. Instead, filers must use the revised Form 1040.

In addition, the publication reminds individuals that there is still qualified disaster tax relief for IRAs related to Hurricane Harvey, Tropical Storm Harvey, Hurricane Irma, Hurricane Maria and the California wildfires. There is also relief for economic losses suffered as a result of disasters declared by the President under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act during calendar year 2016.

Employers that offer Roth or traditional IRAs should familiarize themselves with this guidance.

Publication 590-B, Distributions from IRAs »