DanaB27
Employee Tax Expert

After you file

How much of your basis is used depends on how much was left in your traditional IRA (balance on December 31, 2022) and is calculated on Form 8606. As fanfare mentions, you cannot choose to only use the taxable part or only use the nontaxable part, because each distribution (assuming you have earnings in the account) will have a taxable and nontaxable part because of the pro-rata rule.

 

 

 

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