The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/the-way-it-works-is-that-you-pay-ordinary-rates-in-10344527.aspx

Subject:  Re: Taxes due at withdrawal Date:  9/29/1998  4:31 PM
Author:  vargaj Number:  5725 of 78169

The way it works is that you pay ordinary rates in affect at the time of the distribution. There are no capital gains. If 100% of your contributions were deductible then 100% of your distributions are taxable. If Some of your contributions were not deductible then what the IRS says is that you pay taxes in proportion to the amount that was deductible to the total value of the ALL of your IRAs.

Example: Let's suppose you have 2 IRAs each worth $10,000. let's suppose IRA A was originally funded with fully deduct