topic Traditional IRA in Retirement tax questions

Traditional IRA

chargris — Tue, 10 Mar 2026 06:02:00 GMT

I roll over my 401K to a Traditional IRA this year (2022). There are no taxes involved when rolling over between retirement accounts. I know you are able to deposit approximately seven thousand dollars in a year. If I want to make a deposit, how much in added taxes (percentage) do I have to consider? Also, when I withdraw money from my account, how much in added taxes (percentage) do I consider?

Re: Traditional IRA

VolvoGirl — Wed, 28 Sep 2022 16:05:02 GMT

You can make a new IRA contribution if you have earnings from wages or a net profit from self employment. You don't have to add in taxes. You might qualify to make a deductible IRA contribution. You get a deduction on your tax return for it. When you take a distribution it is added to all your other income and taxed at your tax rate.

Here is pub 590A about Contributions

https://www.irs.gov/pub/irs-pdf/p590a.pdf

And 590B for Distributions

https://www.irs.gov/pub/irs-pdf/p590b.pdf

Re: Traditional IRA

Opus 17 — Thu, 29 Sep 2022 18:11:47 GMT

A rollover is not a contribution and does not change the amount you can contribute.

You can contribute up to $6000 if you are under age 50, or $7000 over age 50, but your contributions can't be more than your compensation from working. (Compensation is generally defined as taxable wages or self-employment income.) Contributions are usually tax-deductible, depending on your other income and whether you or a spouse has a retirement plan at work. You can also choose to make a non-deductible contribution, although this creates extra paperwork that you have to keep track of for many years. If you want to make a non-deductible contribution, you may want to open a Roth IRA instead.

Withdrawals from a traditional (pre-tax) IRA are subject to regular income tax, the rates vary between 10% and 39% depending on your other income. If you are under age 59-1/2, there is an additional 10% penalty for early withdrawal.