Discussion:Distribution from non-deductible IRA
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Doug Morley (talk|edits) said: | 22 March 2006 |
| Client made nondeductible contribution to traditional IRA in past years. According to his computation he has reduced subsequest distributions by $3450, but in my calculation on form 8606 his 2005 distribution of $1601 in 2005, only $200 is taxable, and not the balance of $550.
Which is the correct taxable amount | |
| 13 October 2006 | |
| Any nondeductible contributions (cost basis) are not taxed. For ex:Icontributed 10,000 in non deductible contributions over several yr. The account is now worth 70,000 which means 60,000 is taxable-- when the funds are distributed. Hope this helps. Shack | |
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