Internal Revenue Code · 26 U.S.C.
§ 408A. Roth IRAs
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 408A
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- August 5, 1997 by Pub. L. 105–34
- Last amended
- December 29, 2022 by Pub. L. 117–328
- Amendments
- 11 dated changes in the source credit
- Length
- 5 subsections · 2,637 words · about 11 min to read
- Defines
- 7 terms
- Cross-references
- cites 13; cited by 12 Code sections and 9 other regulations
- Regulations
- 11 issued under this section
Except as provided in this section, a Roth IRA shall be treated for purposes of this title in the same manner as an individual retirement plan.
For purposes of this title, the term “Roth IRA” means an individual retirement plan (as defined in section 7701(a)(37)) which is designated (in such manner as the Secretary may prescribe) at the time of establishment of the plan as a Roth IRA. Such designation shall be made in such manner as the Secretary may prescribe.
No deduction shall be allowed under section 219 for a contribution to a Roth IRA.
No rollover contribution may be made to a Roth IRA unless it is a qualified rollover contribution.
A qualified rollover contribution shall not be taken into account for purposes of paragraph (2).
For purposes of this section, the rule of section 219(f)(3) shall apply.
A payment or distribution from a Roth IRA shall not be treated as a qualified distribution under subparagraph (A) if such payment or distribution is made within the 5-taxable year period beginning with the first taxable year for which the individual made a contribution to a Roth IRA (or such individual’s spouse, or employer in the case of a simple retirement account (as defined in section 408(p)) or simplified employee pension (as defined in section 408(k)), made a contribution to a Roth IRA) established for such individual.
The term “qualified distribution” shall not include any distribution of any contribution described in section 408(d)(4) and any net income allocable to the contribution.
This paragraph shall apply to a distribution from an eligible retirement plan (as defined by section 402(c)(8)(B)) maintained for the benefit of an individual which is contributed to a Roth IRA maintained for the benefit of such individual in a qualified rollover contribution. This paragraph shall not apply to a distribution which is a qualified rollover contribution from a Roth IRA or a qualified rollover contribution from a designated Roth account which is a rollover contribution described in section 402A(c)(3)(A).
The conversion of an individual retirement plan (other than a Roth IRA) to a Roth IRA shall be treated for purposes of this paragraph as a distribution to which this paragraph applies.
Trustees of Roth IRAs, trustees of individual retirement plans, persons subject to section 6047(d)(1), or all of the foregoing persons, whichever is appropriate, shall include such additional information in reports required under section 408(i) or 6047 as the Secretary may require to ensure that amounts required to be included in gross income under subparagraph (A) are so included.
The amount otherwise required to be included in gross income for any taxable year beginning in 2010 or the first taxable year in the 2-year period under subparagraph (A)(iii) shall be increased by the aggregate distributions from Roth IRAs for such taxable year which are allocable under paragraph (4) to the portion of such qualified rollover contribution required to be included in gross income under subparagraph (A)(i).
The amount required to be included in gross income for any taxable year under subparagraph (A)(iii) shall not exceed the aggregate amount required to be included in gross income under subparagraph (A)(iii) for all taxable years in the 2-year period (without regard to subclause (I)) reduced by amounts included for all preceding taxable years.
If the individual required to include amounts in gross income under such subparagraph dies before all of such amounts are included, all remaining amounts shall be included in gross income for the taxable year which includes the date of death.
If the spouse of the individual described in subclause (I) acquires the individual’s entire interest in any Roth IRA to which such qualified rollover contribution is properly allocable, the spouse may elect to treat the remaining amounts described in subclause (I) as includible in the spouse’s gross income in the taxable years of the spouse ending with or within the taxable years of such individual in which such amounts would otherwise have been includible. Any such election may not be made or changed after the due date for the spouse’s taxable year which includes the date of death.
Clause (i) shall apply only to the extent of the amount of the qualified rollover contribution includible in gross income under subparagraph (A)(i).
Section 408(d)(2) shall be applied separately with respect to Roth IRAs and other individual retirement plans.
For purposes of this section, the term “qualified special purpose distribution” means any distribution to which subparagraph (F) of section 72(t)(2) applies.
Except as provided by the Secretary, if, on or before the due date for any taxable year, a taxpayer transfers in a trustee-to-trustee transfer any contribution to an individual retirement plan made during such taxable year from such plan to any other individual retirement plan, then, for purposes of this chapter, such contribution shall be treated as having been made to the transferee plan (and not the transferor plan).
Subparagraph (A) shall not apply to the transfer of any contribution unless such transfer is accompanied by any net income allocable to such contribution.
Subparagraph (A) shall apply to the transfer of any contribution only to the extent no deduction was allowed with respect to the contribution to the transferor plan.
For purposes of this subsection, the due date for any taxable year is the date prescribed by law (including extensions of time) for filing the taxpayer’s return for such taxable year.
For purposes of section 408(d)(3)(B), there shall be disregarded any qualified rollover contribution from an individual retirement plan (other than a Roth IRA) to a Roth IRA. The earnings and contributions of any qualified tuition program from which a qualified rollover contribution is made under subparagraph (C) shall be treated in the same manner as the earnings and contributions of a Roth IRA from which a qualified rollover contribution is made under subparagraph (A).
Section 408(d)(3)(B) shall not apply with respect to amounts treated as a rollover by subparagraph (A).
For purposes of applying section 72 in the case of a distribution which is not a qualified distribution, the amount treated as a rollover by reason of subparagraph (A) shall be treated as investment in the contract.
In the case of any payment or distribution out of a simple retirement account (as defined in section 408(p)) with respect to which an election has been made under section 408(p)(12) and to which 72(t)(6) applies, the term “qualified rollover contribution” shall not include any payment or distribution paid into an account other than another simple retirement account (as so defined).
(Added Pub. L. 105–34, title III, § 302(a), Aug. 5, 1997, 111 Stat. 825; amended Pub. L. 105–206, title VI, § 6005(b)(1)–(7), (9), title VII, § 7004(a), July 22, 1998, 112 Stat. 796–800, 833; Pub. L. 105–277, div. J, title IV, § 4002(j), Oct. 21, 1998, 112 Stat. 2681–908; Pub. L. 107–16, title VI, § 617(e)(1), June 7, 2001, 115 Stat. 106; Pub. L. 109–222, title V, § 512(a), (b), May 17, 2006, 120 Stat. 365; Pub. L. 109–280, title VIII, §§ 824(a), (b), 833(c), Aug. 17, 2006, 120 Stat. 998, 1004; Pub. L. 110–245, title I, § 109(a), (b), June 17, 2008, 122 Stat. 1631, 1632; Pub. L. 110–458, title I, § 108(d), (h), Dec. 23, 2008, 122 Stat. 5109; Pub. L. 115–97, title I, §§ 11002(d)(1)(W), 13611(a), Dec. 22, 2017, 131 Stat. 2060, 2165; Pub. L. 115–141, div. U, title IV, § 401(a)(77), (78), Mar. 23, 2018, 132 Stat. 1187; Pub. L. 116–94, div. O, title I, § 107(c), Dec. 20, 2019, 133 Stat. 3149; Pub. L. 117–328, div. T, title I, § 126(b), title IV, § 401(b)(5), title VI, § 601(a), (c)(2), (d), Dec. 29, 2022, 136 Stat. 5316, 5388, 5390.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 408A
- § 1.408A-0 Roth IRAs; table of contents.
- § 1.408A-1 Roth IRAs in general.
- § 1.408A-2 Establishing Roth IRAs.
- § 1.408A-3 Contributions to Roth IRAs.
- § 1.408A-4 Converting amounts to Roth IRAs.
- § 1.408A-5 Recharacterized contributions.
- § 1.408A-6 Distributions.
- § 1.408A-7 Reporting.
- § 1.408A-8 Definitions.
- § 1.408A-9 Effective date.
- § 1.408A-10 Coordination between designated Roth accounts and Roth IRAs.
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Calculators
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 13 other sections
- § 7701(a)(37) Definitions
- § 219 Retirement savings
- § 1(f)(3) Tax imposed
- § 529(c)(3)(E) Qualified tuition programs
- § 408 Individual retirement accounts
- § 401(a)(9)(A) Qualified pension, profit-sharing, and stock bonus plans
- § 72(m)(7) Annuities; certain proceeds of endowment and life insurance contracts
- § 402(c) Taxability of beneficiary of employees’ trust
- § 403(b)(8) Taxation of employee annuities
- § 457(e)(16) Deferred compensation plans of State and local governments and tax-exempt organizations
- § 402A(c)(3)(A) Optional treatment of elective deferrals as Roth contributions
- § 6047(d)(1) Information relating to certain trusts and annuity plans
- § 530(d)(9) Coverdell education savings accounts
Cited by 12 Code sections
- § 25B(d)(2)(C)(ii) Elective deferrals and IRA contributions by certain individuals
- § 72(t)(11)(D)(ii) Annuities; certain proceeds of endowment and life insurance contracts
- § 219(c)(1)(B)(ii)(III) Retirement savings
- § 402(h)(3) Taxability of beneficiary of employees’ trust
- § 402A(c)(4)(B) Optional treatment of elective deferrals as Roth contributions
- § 408(q)(1)(B) Individual retirement accounts
- § 529(c)(3)(E)(ii)(I) Qualified tuition programs
- § 530(d)(9)(A)(ii) Coverdell education savings accounts
- § 1361(c)(2)(A)(vi) S corporation defined
- § 4973(f) Tax on excess contributions to certain tax-favored accounts and annuities
- § 6433(f)(2)(B) Saver’s Match
- § 7508A(e)(4)(C) Authority to postpone certain deadlines by reason of Federally declared disaster, significant fire, or terroristic or military actions
Cited in 9 regulations not issued under it
- § 1.401(a)-21 Rules relating to the use of an electronic medium to provide applicable notices and to make participant elections.
- § 1.401(k)-1 Certain cash or deferred arrangements.
- § 1.408-11 Net income calculation for returned or recharacterized IRA contributions.
- § 1.408(q)-1 Deemed IRAs in qualified employer plans.
- § 1.1361-1 S corporation defined.
- § 1.1411-8 Exception for distributions from qualified plans.
- § 54.4974-1 Excise tax on accumulations in qualified retirement plans.
- § 301.7508A-1 Postponement of certain tax-related deadlines by reasons of a federally declared disaster or terroristic or military action.
- § 301.7701-7 Trusts—domestic and foreign.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 117–328Parts changed in 2022: (c)(2)(A) (c)(3)(E) (c)(5)(B) (d)(2)(B) (e)(1) (e)(1)(C) (e)(3) (f)
- Amended by Pub. L. 116–94Parts changed in 2019: (c)(4)
- Amended by Pub. L. 115–141Parts changed in 2018: (d)(3)(B) (e)(2)(B)
- Amended by Pub. L. 115–97Parts changed in 2017: (c)(3)(D)(ii) (d)(6)(B)(iii)
- Amended by Pub. L. 110–458Parts changed in 2008: (c)(3)(B) (c)(3)(C) (d)(3)(B) (e)
- Amended by Pub. L. 110–245
- Amended by Pub. L. 109–280Parts changed in 2006: (c)(3)(B) (c)(3)(B)(i) (c)(3)(C) (c)(3)(D) (d)(3) (d)(3)(A) (d)(3)(A)(iii) (d)(3)(B) (d)(3)(D) (d)(3)(E) (d)(3)(E)(i) (e)
- Amended by Pub. L. 109–222
- Amended by Pub. L. 107–16Parts changed in 2001: (e)
- Amended by Pub. L. 105–277Parts changed in 1998: (c)(3)(A) (c)(3)(A)(ii) (c)(3)(B) (c)(3)(B)(i) (c)(3)(C)(i) (c)(3)(C)(i)(II) (d)(1) (d)(2)(B) (d)(2)(C) (d)(3)(A) (d)(3)(D) (d)(3)(E) (d)(3)(F) (d)(3)(G) (d)(4) (d)(6) (d)(7) (f)
- Amended by Pub. L. 105–206
- Added by Pub. L. 105–34
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter D Deferred Compensation, Etc.
- Part I PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC.
- Subpart A General Rule
Nearby sections
- § 405 Repealed
- § 406 Employees of foreign affiliates covered by section 3121(l) agreements
- § 407 Certain employees of domestic subsidiaries engaged in business outside the United States
- § 408 Individual retirement accounts
- § 408A Roth IRAs
- § 409 Qualifications for tax credit employee stock ownership plans
- § 409A Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans
Official notes
The Law Revision Counsel's notes for this section (amendments, effective dates and related laws) are long, so they have their own page.