Updated October 24, 2026. Quick answer: Tax Topic 451 is the IRS page on individual retirement arrangements, including traditional IRAs and Roth IRAs. It says traditional IRA contributions may be deductible and that distributions are fully or partially taxable. Roth IRA contributions are not deductible, and qualified earnings are not taxed.
Quick reference
| Item | What the IRS topic says |
|---|---|
| What an IRA is | “An individual retirement arrangement (IRA) is a tax-favored personal savings arrangement, which allows you to set aside money for retirement.” |
| Who can contribute to a traditional IRA | “There is no age limit to contribute to a traditional IRA, however you must have taxable compensation for purposes of contributing to an IRA.” |
| Rollover limit | “You can only make one rollover from an IRA to another (or the same) IRA in any one-year period, regardless of the number of IRAs you own.” |
| Roth contributions | “Contributions to a Roth IRA aren’t deductible.” |
| Early distributions | “may be subject to an additional 10% tax.” |
Traditional IRAs: contributions and the deduction
The topic starts with how a traditional IRA is taxed. It says “You may be able to deduct some or all of your contributions to a traditional IRA.” It also says “Amounts in your traditional IRA, including earnings, generally aren’t taxed until distributed to you.” On ownership, it says “IRAs can’t be owned jointly.”
To contribute, the topic says “you, and/or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment.” It also lists what does not count: “This doesn’t include earnings and profits from property, such as rental income, interest and dividend income”.
For the paperwork, the topic says “If you made nondeductible contributions to a traditional IRA, you must attach Form 8606, Nondeductible IRAs.” Our page on Form 8606 covers that form, and the page on Form 8880 covers the credit form the topic mentions.
Distributions, rollovers and required minimums
On taxes at withdrawal, the topic says “Distributions from a traditional IRA are fully or partially taxable in the year of distribution.” It adds “If you made only deductible contributions, distributions are fully taxable.”
The rollover rule has a carve-out. The topic says “A trustee-to-trustee transfer isn’t a rollover and isn’t affected by this rule.” On minimum withdrawals, it says “You may also owe an additional tax if you don’t withdraw minimum distributions from a traditional IRA annually, beginning by April 1 of the year after the year you reach age 73.” The site page on required minimum distribution basics goes further.
Roth IRAs and early distributions
The topic says “A Roth IRA differs from a traditional IRA in several ways.” Besides the lack of a deduction, it says “Earnings on nonqualified distributions are subject to tax.”
On setup, the topic says “To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it’s set up.” On early withdrawals, it says certain taxable distributions “may be subject to an additional 10% tax.” The topic points to Topic no. 557 for exceptions. Our pages on early withdrawal penalty exceptions and Roth IRA income limits cover related ground.
Where this comes from
This page describes the IRS page titled Topic no. 451, Individual retirement arrangements (IRAs), as served on irs.gov on October 24, 2026. The IRS page shows that it was last reviewed or updated on 24 Sep 2026. The IRS can change a topic after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Assuming a certain age ends contributions. The topic says “There is no age limit to contribute to a traditional IRA”
- Counting rental or investment income as compensation. The topic says “This doesn’t include earnings and profits from property, such as rental income, interest and dividend income”
- Treating every move between IRAs as a rollover. The topic says “A trustee-to-trustee transfer isn’t a rollover”
- Expecting a deduction for Roth money. The topic says “Contributions to a Roth IRA aren’t deductible.”
- Opening a joint IRA. The topic says “IRAs can’t be owned jointly.”
Related: IRS tax topics by number, Form 8606, Form 8880, Roth IRA income limits, RMD basics, Early withdrawal penalty exceptions, and Schedule 1 line 20 IRA deduction.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about IRA planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with Roth and traditional IRAs
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- IRS, Topic no. 451, Individual retirement arrangements (IRAs) (irs.gov): https://www.irs.gov/taxtopics/tc451
- IRS, Tax topics index (irs.gov): https://www.irs.gov/taxtopics
Read from the IRS pages linked above on October 24, 2026. General information, not tax or legal advice. The IRS topic page and the instructions for your own form control, and your own facts decide the outcome.