Cindy4
Employee Tax Expert

Retirement tax questions

Hi @DorieBigD !

 

The entire distribution from the pre-tax Rollover will be taxable to the extent that your income is greater than the standard or itemized deduction you take.  The after tax Traditional may provide you with a statement along with a form 1099-R that will indicate the taxable and non-taxable portions.  The distribution is considered proportionate by the IRS, so you will want to check their reported numbers so you don't pay tax twice on the same dollars.  It's important to know the amount of your non-deductible contributions so you can calculate proportion compared to the earnings.  Tax rules require an IRA’s after- tax contributions to be compared with the year-end IRA balance, plus distributions during the year, to calculate the ratio of pre-tax and after- tax dollars involved in a distribution.

 

Here is a reference link regarding RMDs:

https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs#:~:...

 

Hope this helps!

Cindy

 

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