[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.408A-8]

[Page 523-524]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.408A-8  Definitions.

    This section sets forth the following question and answer that 
provides definitions of terms used in the provisions of Sec. Sec. 
1.408A-1 through 1.408A-7 and this section:

[[Page 524]]

    Q-1. Are there any special definitions that govern in applying the 
provisions of Sec. Sec. 1.408A-1 through 1.408A-7 and this section?
    A-1. Yes, the following definitions govern in applying the 
provisions of Sec. Sec. 1.408A-1 through 1.408A-7 and this section. 
Unless the context indicates otherwise, the use of a particular term 
excludes the use of the other terms.
    (a) Different types of IRAs--(1) IRA. Sections 408(a) and (b), 
respectively, describe an individual retirement account and an 
individual retirement annuity. The term IRA means an IRA described in 
either section 408(a) or (b), including each IRA described in paragraphs 
(a)(2) through (5) of this A-1. However, the term IRA does not include 
an education IRA described in section 530.
    (2) Traditional IRA. The term traditional IRA means an individual 
retirement account or individual retirement annuity described in section 
408(a) or (b), respectively. This term includes a SEP IRA but does not 
include a SIMPLE IRA or a Roth IRA.
    (3) SEP IRA. Section 408(k) describes a simplified employee pension 
(SEP) as an employer-sponsored plan under which an employer can make 
contributions to IRAs established for its employees. The term SEP IRA 
means an IRA that receives contributions made under a SEP. The term SEP 
includes a salary reduction SEP (SARSEP) described in section 408(k)(6).
    (4) SIMPLE IRA. Section 408(p) describes a SIMPLE IRA Plan as an 
employer-sponsored plan under which an employer can make contributions 
to SIMPLE IRAs established for its employees. The term SIMPLE IRA means 
an IRA to which the only contributions that can be made are 
contributions under a SIMPLE IRA Plan or rollovers or transfers from 
another SIMPLE IRA.
    (5) Roth IRA. The term Roth IRA means an IRA that meets the 
requirements of section 408A.
    (b) Other defined terms or phrases--(1) 4-year spread. The term 4-
year spread is described in Sec. 1.408A-4 A-8.
    (2) Conversion. The term conversion means a transaction satisfying 
the requirements of Sec. 1.408A-4 A-1.
    (3) Conversion amount or conversion contribution. The term 
conversion amount or conversion contribution is the amount of a 
distribution and contribution with respect to which a conversion 
described in Sec. 1.408A-4 A-1 is made.
    (4) Failed conversion. The term failed conversion means a 
transaction in which an individual contributes to a Roth IRA an amount 
transferred or distributed from a traditional IRA or Simple IRA 
(including a transfer by redesignation) in a transaction that does not 
constitute a conversion under Sec. 1.408A-4 A-1.
    (5) Modified AGI. The term modified AGI is defined in Sec. 1.408A-3 
A-5.
    (6) Recharacterization. The term recharacterization means a 
transaction described in Sec. 1.408A-5 A-1.
    (7) Recharacterized amount or recharacterized contribution.The term 
recharacterized amount or recharacterized contribution means an amount 
or contribution treated as contributed to an IRA other than the one to 
which it was originally contributed pursuant to a recharacterization 
described in Sec. 1.408A-5 A-1.
    (8) Taxable conversion amount. The term taxable conversion amount 
means the portion of a conversion amount includible in income on account 
of a conversion, determined under the rules of section 408(d)(1) and 
(2).
    (9) Tax-free transfer. The term tax-free transfer means a tax-free 
rollover described in section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), 
403(b)(8), 403(b)(10) or 408(d)(3), or a tax-free trustee-to-trustee 
transfer.
    (10) Treat an IRA as his or her own. The phrase treat an IRA as his 
or her own means to treat an IRA for which a surviving spouse is the 
sole beneficiary as his or her own IRA after the death of the IRA owner 
in accordance with the terms of the IRA instrument or in the manner 
provided in the regulations under section 408(a)(6) or (b)(3).
    (11) Trustee. The term trustee includes a custodian or issuer (in 
the case of an annuity) of an IRA (except where the context clearly 
indicates otherwise).

[T.D. 8816, 64 FR 5610, Feb. 4, 1999]

[[Page 525]]