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URL:  http://boards.fool.com/now-what-do-i-do-with-the-1000-that-i-already-14319743.aspx

Subject:  Re: To IRA or not to IRA Date:  2/10/2001  3:56 PM
Author:  irasmilo Number:  46135 of 121180

...Now what do I do with the $1000 that I already sent my IRA broker this year towards last year's contribution ? Should I take it back? The stock that money bought has fallen in value since I put it in, so withdrawing would set me back by about $200 and also how does one compute the withdrawal amount?

I'm going to pass on this question.

If suppose I dont withdraw it, I understand it would be called a non-deductible contribution. Can I mix deductibe and non-deductible contributions in the same IRA account ? How does one calculate the tax when the money is finally withdraw at age 59 1/2?

Yes, you can mix deductible and non-deductible contributions in the same IRA. You keep track of the non-deductible contributions on Form 8606 which you will have to file this year. When you finally get around to withdrawing funds from the IRA there is a formula you use to determine how much of the withdrawal is taxable and how much is tax-free (non-deductible contribution). This can be found on Form 8606 as well.

Ira
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