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in chapter 1 under Rollover From One IRA Into Another, apply to these rollovers. However, rollovers from retire- ment plans other than Roth IRAs are disregarded for pur- poses of the 1-year waiting period between rollovers. A rollover from a Roth IRA to an employer retirement plan isn’t allowed. A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions doesn’t change. The 5-year period begins with the first tax year for which the contribution was made to the initial Roth IRA. See What Are Qualified Distribu- tions in chapter 2 of Pub. 590-B. Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, ear- lier) and you received qualified settlement income (de- fined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. Qualified settlement in- come that is contributed to a Roth IRA, or to a designated Roth account, will be: • Included in your taxable income for the year the quali- fied settlement income was received, and • Treated as part of your cost basis (investment in the contract) in the Roth IRA that isn’t taxable when dis- tributed. For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. 3. Retirement Savings Contributions Credit (Saver's Credit) What's New Modified AGI limit for retirement savings contribu- tions credit increased. For 2018, you may be able to claim the retirement savings contributions credit if your modified AGI isn’t more than: • $63,000 if your filing status is married filing jointly; • $47,250 if your filing status is head of household; or • $31,500 if your filing status is single, married filing separately, or qualifying widow(er). Introduction You may be able to take a tax credit if you make eligible contributions (defined later) to a qualified retirement plan, an eligible deferred compensation plan, or an IRA. You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). This credit could reduce the federal income tax you pay dollar for dollar.

Can you claim the credit? If you make eligible contribu- tions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply. 1. You were born before January 2, 2001. 2. You aren’t a full-time student (explained later). 3. No one else, such as your parent(s), claims an ex- emption for you on their tax return. 4. Your adjusted gross income (defined below) isn’t more than: a. $63,000 if your filing status is married filing jointly; b. $47,250 if your filing status is head of household; or c. $31,500 if your filing status is single, married filing separately, or qualifying widow(er). Full-time student. You are a full-time student if, dur- ing some part of each of 5 calendar months (not necessa- rily consecutive) during the calendar year, you are either: • A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance; or • A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. You are a full-time student if you are enrolled for the num- ber of hours or courses the school considers to be full time. Adjusted gross income. This is generally the amount on line 7 of your 2018 Form 1040; or line 35 of your 2018 Form 1040NR. However, you must add to that amount any exclusion or deduction claimed for the year for: • Foreign earned income, • Foreign housing costs, Page 46 Chapter 3 Retirement Savings Contributions Credit (Saver's Credit)