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Retirement tax questions
Yes, but that does not avoid tax. If you make a regular withdrawal from the IRA, it is subject to regular income tax plus a 10% penalty if you are under age 59-1/2.
You can do a conversion (rollover) from the traditional IRA to the Roth IRA. This does not count as a contribution, you still pay tax but you don't pay a penalty, and you get the money into the Roth. Plus you can still make Roth contributions if you are eligible.
There;s really no way to get money out of a traditional IRA without paying income tax, since you paid no tax on contributions or earnings. The only way to not pay any tax on a traditional IRA withdrawal is for your total taxable income to be less than your standard or itemized deductions.
‎January 7, 2025
6:58 PM