IRA distributions

IRA distributions may include distributions made from a traditional IRA, a simplified employee pension (SEP) IRA, or a savings incentive match plan for employees (SIMPLE) IRA. The amount on line 4b of an individual’s federal income tax return, which is the amount included in federal taxable income, is the amount that is eligible for the subtraction, not the amount on line 4a.

Distributions deemed to be premature distributions for federal income tax purposes do not qualify for the subtraction. In general, a distribution is considered premature if it is made to an individual who has not yet reached age 59½, but not if one of several exceptions apply. Please see the instructions for IRS Form 5329 for information about these exceptions.