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Greetings, Them, and welcome. You said:

<<JAFO wrote:
I am guessing that maybe these are former 401-k funds that were rolled into an IRA when your wife received her severance package.
============
Upon further questioning of my wife, it turns out the funds were from an ESOP (Employee Stock Option Program?) retirement account, that was rolled over into an IRA.
She never made any further contributions.

So, my take based on this and your observations, is that there were no nondeductible contributions ever made and hence we do not need to worry about the cost/value basis stuff on our taxes (remember, we're having to report that we yanked some $$ out of it *ouch*)

What do you think?>>


The ESOP was a qualified retirement plan fully eligible for a transfer to an IRA. Your wife mad no deductible contributions to that plan or that part of her ESOP money could not have been transferred to the IRA. You say you took a withdrawal from that IRA. In that case, the amount taken is fully taxable and, assuming she was under the age of 59 1/2 at the time of withdrawal, it will be penalized an additional 10% for premature distribution as well.

Regards..Pixy
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