Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
djham4
New Member

Do I pay taxes on a non-ualified IRA?

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.

1 Best answer

Accepted Solutions
dmertz
Level 15

Do I pay taxes on a non-ualified IRA?

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.

View solution in original post

3 Replies
dmertz
Level 15

Do I pay taxes on a non-ualified IRA?

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
New Member

Do I pay taxes on a non-ualified IRA?

nonualified annuity...my error
dmertz
Level 15

Do I pay taxes on a non-ualified IRA?

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.

Dynamic AdsDynamic Ads
Privacy Settings
v