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State tax filing
IRA withdrawals are taxed at ordinary income tax rates. You don't report or track any transactions, buys, sells, dividends, interest, capital gains etc. Everything is tax deferred. That's one of the benefits of using an IRA or 401K. Except that when you take a distribution it all comes out taxable at your current rate or may push you into a higher tax bracket.
When IRAs first started it was assumed that people would have lower income and be in a lower tax rate when they started taking distributions in retirement. But it doesn't always work out that way.
March 12, 2022
10:36 AM