Introduction This publication discusses individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement. What are some tax advantages of an IRA? Two tax advantages of an IRA are that: Contributions you make to an IRA may be fully or partially deductible, depending on which type of IRA you have and on your circumstances, and Generally, amounts in your IRA (including earnings and gains) are not taxed until distributed. In some cases, amounts are not taxed at all if distributed according to the rules. What's in this publication? This publication explains the rules for: Setting up an IRA, Contributing to an IRA, Transferring money or property to and from an IRA, Handling an inherited IRA, Making withdrawals from an IRA, and Receiving distributions from an IRA. It also explains the penalties and additional taxes that apply when the rules are not followed. To assist you in complying with the tax rules for IRAs, this publication contains worksheets, sample forms, and tables, which can be found throughout the publication and in the appendices at the back of the publication. Coverdell education savings accounts (formerly called education IRAs) are not discussed in this publication because they are not used to set aside money for retirement. They are used to fund education and are therefore discussed in Publication 970. How to use this publication. The rules that you must follow depend on which type of IRA you have. Use Table I-1 to help you determine which parts of this publication to read. Also use Table I-1 if you were referred to this publication from instructions to a form. Table I-1. Using This Publication IF you need information on ... THEN see ... Traditional IRAs  Chapter 1 Roth IRAs  Chapter 2, and  Parts of  Chapter 1 SEP-IRAs  Chapter 3 SIMPLE IRAs  Chapter 4 Summary Record of Traditional IRA(s) for 2001  Appendix A Worksheets for Social Security Recipients Who Contribute to a Traditional IRA  Appendix B Coverdell education savings accounts (formerly called education IRAs) VALIGN="bottom"> Publication 970 Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions. You can e-mail us while visiting our web site at www.irs.gov. You can write to us at the following address: Internal Revenue Service Technical Publications Branch W:CAR:MP:FP:P 1111 Constitution Ave. NW Washington, DC 20224 We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.