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New Member
posted Jun 6, 2019 2:36:21 AM

I have money invested in an IRA that was from a accident settlement. It wasn't taxable then. Why is it taxable when I make a withdrawal? It's not related to employment

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Intuit Alumni
Jun 6, 2019 2:36:23 AM

Money contributed into a Traditional IRA is deductible when contributed and taxable when distributed. Money contributed into a Roth are not deductible but are also non-taxible if you meet certain requirements. You can always take out your own contribution, tax-free from a Roth.

1 Replies
Intuit Alumni
Jun 6, 2019 2:36:23 AM

Money contributed into a Traditional IRA is deductible when contributed and taxable when distributed. Money contributed into a Roth are not deductible but are also non-taxible if you meet certain requirements. You can always take out your own contribution, tax-free from a Roth.