I'm 61 years of age and am thinking about withdrawing my entire Traditional IRA account funds at one time. Over time, I have switched this IRA from two different banks to three different Brokerage firms. It is now in one Brokerage account. I've never had more than one IRA account; it has just been transferred to different organizations. The question: Do I have to have records of all the transactions through the years to determine Capital Gains? I'm sure that some of this information will be difficult to come up with, if at all. Or does the IRS merely use a percentage to tax the amount I'm withdrawing? I find all this very confusing. Any help would be greatly appreciated.
If you made non-deductible contributions to your IRA over the years, you need the total, which should have been reported to the IRS annually. That portion of your IRA is not taxable. If it is all or partly deductible, then you will pay tax on the amount withdrawn. Capital gains, the source of the money, makes no difference. Except for any non-deductible contributions, it is all taxed as ordinary income. Best wishes, Chris
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |