I guess I don't understand. Why am I being what appears to be penalized for taking a distribution when I am over 59 and a half years old and I'm paying taxes on that distribution and TurboTax is only calculating a small portion of the basis. Now I am to forfeit an additional $900+ in what I would have received as a tax refund. I am only liquidating the mixed up IRA over two years. The other IRA's are being left as is. Does this mean every year from now on I will be penalized when I report the market value of my IRA's? What is the benefit of an IRA when they have made no or little interest and now I am double taxed when I liquidate a piddly IRA? This is frustrating. We really need the tax refund.
