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jmichael-joyce
jmichael-joyce
Level 1
posted
‎June 6, 2019 1:11 AM
last updated ‎June 06, 2019 1:11 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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TomD8
Level 11 TomD8
Level 11
‎June 6, 2019 1:11 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?

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

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TomD8
Level 11 TomD8
Level 11
‎June 6, 2019 1:11 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?

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

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