2006-07-12 14:58:49 · 4 answers · asked by brownie 1 in Business & Finance ➔ Taxes ➔ United States
They are from a Roth IRA and no from a traditional IRA.
2006-07-12 15:02:01 · answer #1 · answered by arthur.krill@sbcglobal.net 2 · 0⤊ 0⤋
The entire distribution is taxable unless it's a Roth IRA, in which case it's non-taxable.
If a traditional (not Roth) IRA, you didn't pay taxes on the base amount when you put it in, so you'll pay now. The advantage to you was that it grew tax-free while you had it in.
The only thing that's special about age 70.5 with regard to IRA's is that's when you are required to start withdrawing a specified minimum amount every year.
2006-07-12 23:42:50 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
also a portion of a traditional IRA may not be taxable if you've ever made non-deductible contributions. You can tell this if youve ever filed Form 8606 on any previous tax returns. If you have you pro rate the portion against those non-deductible contributions based on the value of all your traditional IRAs at the end of the year. This is also done on Form 8606. The form and it's instructions canbe found at
http://www.irs.gov/formspubs/lists/0,,id=97817,00.html
2006-07-12 23:54:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Only the earnings, interest and dividends over and above the base amount of the IRA, is taxable. However, you should have enough in itemized deductions to cover that.
2006-07-12 22:05:04 · answer #4 · answered by rb_cubed 6 · 0⤊ 0⤋