The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Where to hold GNMA fund Date:  12/16/2006  3:41 PM
Author:  Crosenfield Number:  90031 of 127846

"but a traditional IRA can have basis, in which case only a portion of the withdrawal may be taxable."

Correct. But the taxable portion will be taxed as ordinary income.

I can't figure any way the basis could ever be 100%, unless the investments in the IRA had generated nothing...or figuring in capital losses, there had been no return over the years and the IRA had been funded with after-tax income.

Putting all the after-tax money into the same IRA doesn't solve anything either, as required withdrawals are calculated based on ALL your IRAs...

Best wishes, Chris
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us