IRS Pub 590-B – IRS Forms, Instructions, Pubs 2026 – Are you navigating the complex world of Individual Retirement Arrangements (IRAs)? Whether you’re planning withdrawals from a Traditional IRA, understanding Roth IRA tax rules, or figuring out required minimum distributions (RMDs), IRS Publication 590-B is an essential resource. This comprehensive guide breaks down the tax implications of IRA distributions, helping you avoid penalties and maximize your retirement savings. In this article, we’ll explore what Pub 590-B covers, key rules for different IRA types, recent updates, and how to access it—all based on the latest 2025 edition.
What Is IRS Publication 590-B?
IRS Publication 590-B, titled “Distributions from Individual Retirement Arrangements (IRAs),” is a detailed IRS document that explains the rules for taking money out of IRAs. It covers Traditional IRAs, Roth IRAs, SIMPLE IRAs, and SEP IRAs, focusing on when and how distributions are taxed, required withdrawals, and exceptions to penalties. An IRA is a personal savings plan offering tax advantages, such as deductible contributions for Traditional IRAs or tax-free qualified distributions for Roth IRAs.
This publication is the companion to Pub 590-A, which deals with IRA contributions. Together, they provide a complete overview of IRA management. Pub 590-B is updated annually to reflect tax law changes, and the 2025 version (for use in preparing 2025 returns) was released on January 21, 2026. It’s crucial for retirees, beneficiaries, and financial planners to stay compliant with IRS rules.
Key Topics Covered in Pub 590-B
Pub 590-B is divided into chapters and appendices, making it easy to find specific information. Here’s a breakdown of the main sections, including rules for distributions, taxes, and penalties.
Chapter 1: Traditional IRAs
Traditional IRAs (including SEP IRAs) form the bulk of this chapter. Key points include:
- Inheriting an IRA: If you inherit a Traditional IRA, taxable distributions must be included in your gross income. Spouses can treat it as their own or roll it over, while non-spouses have limited options like trustee-to-trustee transfers. Beneficiaries use life expectancy tables for RMDs, with rules like the 10-year rule for non-eligible designated beneficiaries.
- Withdrawal Timing: You can withdraw assets anytime, but early distributions (before age 59½) incur a 10% additional tax unless exceptions apply, such as disability or first-time homebuyer expenses (up to $10,000).
- Required Minimum Distributions (RMDs): Start by April 1 of the year after turning 73. Calculate by dividing your IRA balance (as of Dec. 31 prior year) by a life expectancy factor from Appendix B tables.
- Taxability: Distributions are generally taxable as ordinary income, except for rollovers, qualified charitable distributions (QCDs up to $108,000 for those 70½+), or nondeductible contributions. Use Form 8606 to figure nontaxable portions.
- Penalties: Early withdrawals face a 10% tax, and insufficient RMDs trigger a 25% excise tax (reducible to 10% if corrected timely). Prohibited transactions, like borrowing from your IRA, can disqualify the account.
Exceptions to the 10% early distribution penalty include:
- Unreimbursed medical expenses exceeding 7.5% of AGI
- Higher education costs
- Qualified birth or adoption distributions (up to $5,000)
- Emergency personal expenses (up to $1,000, once per year)
- Domestic abuse victim distributions (up to $10,300)
Chapter 2: Roth IRAs
Roth IRAs differ significantly, offering tax-free qualified distributions.
- What Is a Roth IRA?: Contributions are nondeductible, but qualified distributions (after age 59½ and a 5-year holding period) are tax-free.
- Taxability: Nonqualified distributions tax earnings first (after contributions and conversions). No RMDs during the owner’s lifetime, but beneficiaries must follow post-death rules, such as the 10-year rule.
- Penalties: 10% tax on early nonqualified distributions of earnings, with similar exceptions as Traditional IRAs.
Ordering rules for distributions: Regular contributions come out tax-free first, followed by conversions, then earnings.
Required Minimum Distributions (RMDs) in Detail
RMDs are a core focus across chapters. For 2025:
- Age Requirement: Begins at age 73 for those born in 1951 or later.
- Calculation: Use the Uniform Lifetime Table (Table III) for most owners. If your spouse is more than 10 years younger and the sole beneficiary, use the Joint and Last Survivor Table (Table II).
Here’s a sample from the Uniform Lifetime Table in Appendix B:
| Age | Distribution Period |
|---|---|
| 72 | 27.4 |
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 80 | 20.2 |
| 85 | 16.0 |
| 90 | 12.2 |
| 95 | 9.5 |
| 100 | 7.0 |
| 120+ | 2.0 |
For beneficiaries, the Single Life Expectancy Table (Table I) applies, with adjustments for eligible designated beneficiaries. Aggregate RMDs across multiple IRAs, but calculate each separately.
Failure to take RMDs results in a 25% excise tax on the shortfall.
Penalties and Additional Taxes
Pub 590-B outlines actions leading to penalties:
- Early Distributions: 10% tax before 59½, reported on Form 5329.
- Excess Accumulations: 25% on missed RMDs.
- Prohibited Transactions: Can cause full taxation and disqualification, including investing in collectibles (with exceptions for certain coins and bullion).
- Unrelated Business Income: If your IRA generates $1,000+ in unrelated income, file Form 990-T.
Repayments of certain distributions (e.g., qualified disasters) can avoid taxes.
Chapter 3: Disaster-Related Relief
For qualified disasters (federally declared after Dec. 27, 2020), you can take up to $22,000 in tax-free recovery distributions, spread over 3 years, with no 10% early penalty. Repay within 3 years to exclude from income. Also covers recontributions for unused home purchase distributions affected by disasters.
Recent Changes in the 2025 Edition of Pub 590-B
The 2025 update includes several key modifications:
- Excise Tax Relief for 2024 RMDs: No excise tax for missed 2024 RMDs if requirements in Notice 2024-35 are met.
- Corrective Distributions: Income on excess contributions corrected after Dec. 29, 2022, is exempt from the 10% early distribution tax.
- RMD Rules for Beneficiaries: New 10-year rule for designated beneficiaries if the owner dies after Dec. 31, 2019—all assets must be distributed by the end of the 10th year, except for eligible beneficiaries (e.g., minors, disabled).
- QCD Limit: Increased to $111,000 in an example, but standard is $108,000—adjust for post-70½ contributions using Appendix D worksheet.
- One-Time HSA Funding: Allows direct transfer from IRA to HSA (up to annual limit).
These changes reflect ongoing adjustments from laws like the SECURE Act.
How to Download and Use IRS Pub 590-B?
To access the full document, download the PDF from the official IRS website: https://www.irs.gov/pub/irs-pdf/p590b.pdf. It’s free and includes worksheets, examples, and appendices for calculations.
Tips for using it:
- Reference appendices for life expectancy tables and worksheets (e.g., QCD Adjustment Worksheet).
- Cross-reference with forms like 8606 (nondeductible IRAs), 1099-R (distributions), and 5329 (additional taxes).
- Consult a tax professional for personalized advice, as Pub 590-B is general guidance.
Conclusion: Stay Informed on IRA Distribution Rules
IRS Publication 590-B is indispensable for anyone managing IRA distributions in 2025. By understanding RMDs, tax treatments, and penalties, you can make informed decisions to protect your retirement nest egg. Download the latest version today and review it alongside your financial plan. Remember, tax laws evolve, so check IRS.gov for updates. If you’re dealing with inherited IRAs or complex scenarios, professional guidance ensures compliance and optimizes your strategy.