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landmokeefe
New Member

. Can we withdraw all of the nondeductable contributions at one time and then a minimum withdrawl fro the rest?

My wife has to begin mandatory contributions this ear.

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dmertz
Level 15

. Can we withdraw all of the nondeductable contributions at one time and then a minimum withdrawl fro the rest?

When distributions are made from an IRA or qualified retirement plan like a 401(k), distributions are part nontaxable and part taxable with the taxable portion being in the same proportion as the nondeductible contributions have to the overall balance.  The only exception for an RMD distribution is for a distribution from an IRA that is a Qualified Charitable Distributions which comes entirely from the otherwise taxable money in the account or an HSA Funding Distribution sent to an HSA, if eligible.  A Qualified Charitable Distribution must be paid directly to the charity by the IRA custodian.


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2 Replies
VolvoGirl
Level 15

. Can we withdraw all of the nondeductable contributions at one time and then a minimum withdrawl fro the rest?

No.  It is prorated.  @dmertz
dmertz
Level 15

. Can we withdraw all of the nondeductable contributions at one time and then a minimum withdrawl fro the rest?

When distributions are made from an IRA or qualified retirement plan like a 401(k), distributions are part nontaxable and part taxable with the taxable portion being in the same proportion as the nondeductible contributions have to the overall balance.  The only exception for an RMD distribution is for a distribution from an IRA that is a Qualified Charitable Distributions which comes entirely from the otherwise taxable money in the account or an HSA Funding Distribution sent to an HSA, if eligible.  A Qualified Charitable Distribution must be paid directly to the charity by the IRA custodian.


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