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New Member
posted Jun 6, 2019 1:11:12 AM

In 2018 I had to take an RMD from my IRA. Is there any way to determine if a portion of that RMD was from federal or state tax exempt investments?

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Level 15
Jun 6, 2019 1:11:13 AM

It doesn't matter.  IRA withdrawals are taxed at ordinary income rates, regardless of the type of investments in the IRA.  That's why there is little or no advantage to holding tax-exempt investments in an IRA.  This website gives a more detailed discussion:  https://www.fool.com/investing/general/2015/02/24/2-investments-to-avoid-in-your-ira.aspx

1 Replies
Level 15
Jun 6, 2019 1:11:13 AM

It doesn't matter.  IRA withdrawals are taxed at ordinary income rates, regardless of the type of investments in the IRA.  That's why there is little or no advantage to holding tax-exempt investments in an IRA.  This website gives a more detailed discussion:  https://www.fool.com/investing/general/2015/02/24/2-investments-to-avoid-in-your-ira.aspx