dmertz
Level 15

Retirement tax questions

For the purpose of NIIT, distributions from IRAs are not treated as investment income. 

 

26 U.S. Code §1411(c)(5) Exception for distributions from qualified plans
The term “net investment income” shall not include any distribution from a plan or arrangement described in section 401(a), 403(a), 403(b), 408, 408A, or 457(b).