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Retirement tax questions
Both SteanTrain and Critter#2 are correct:
1. You cannot remove only the after tax money from a Traditional IRA. You treat any distribution as a mixture of taxable and non taxable money.
2. You must submit form 8606 to show how you calculated the taxable portion. So even if that $11,000 was all your IRA money, form 8606* is still required.
*Form 8606 has multiple uses. You used it (line 1-5) to report non-deductible contributions in 2014. You should have used it again, in 2015, to report the taxable portion of the distribution (lines 6-15)
1. You cannot remove only the after tax money from a Traditional IRA. You treat any distribution as a mixture of taxable and non taxable money.
2. You must submit form 8606 to show how you calculated the taxable portion. So even if that $11,000 was all your IRA money, form 8606* is still required.
*Form 8606 has multiple uses. You used it (line 1-5) to report non-deductible contributions in 2014. You should have used it again, in 2015, to report the taxable portion of the distribution (lines 6-15)
‎June 6, 2019
1:33 AM