Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[ 4. How do you know an IRA is pre-tax or after-tax?]]

If you have made any non-deductible IRA contributions, you should have filed IRS Form 8606
with that (and future) tax returns to track your basis in the IRA. If you haven't made any
non-deductible contributions, it is unlikely that you have any "basis" in your IRA.


When I read the above it scared me at first as I didn't remember filing this form, so I checked my records. I found I did fill out 8606 for tax year 1997, the first year I made a non-deductable contribution. WHEW!!

NOW I understand what the basis is. Also understand how a traditional IRA can contain both pre-tax money (e.g. from a 401K) and after-tax money (non-deductable contributions).

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.