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?

jmichael-joyce · ‎June 6, 2019

TomD8 · ‎June 6, 2019

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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

TomD8 · ‎June 6, 2019

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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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