Do I pay taxes on a non-ualified IRA?

[djham4]

I bought 2 Non qualified IRAs from  Financial Union...at the time all money were already taxed.  Do I have to pay taxes on my withdrawal of already taxed dollars?  This is not a Roth IRA.

[dmertz]

There is no such thing as a "nonqualified IRA."  Are these actually (qualified) traditional IRAs and you have basis in nondeductible contributions?  Are these CDs?  Are these nonqualified annuities?

[djham4]

nonualified annuity...my error

[dmertz · Accepted solution]

Distributions from a nonqualified deferred annuity are taxable to the extent that they exceed the purchase premiums paid for the annuity.  In other words, the earnings generated by the investments in the annuity are taxable.  Non-periodic distribution consist first of taxable earnings, followed by nontaxable distributions of your original premiums.  If you annuitize the deferred annuity, the resulting periodic distributions consist partially of a nontaxable return of your original premiums and partially of taxable amounts.  Form periodic distributions you would have to find out from the annuity company how much of each distribution would be a nontaxable return of premiums.