If your traditional IRA contribution is tax deductible then the contribution amount is deducted from that years income tax, thereby; making the contribution pre-tax.If your traditional IRA contribution is taxable, then a 8606 form is filed with your 1040 establishing the cost basis. When you withdraw funds from the IRA, the cost basis is prorated for the distribution amount. If you are covered by a 401K/403B plans then the income limit for tax deductible IRA is fairly low. Debra
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