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0x6a74 writes,

Read the instructions on the tax forms concerning IRAs. Annually you report the TOTAL amount in IRAs. When you start making withdrawals, it asks for the amount withdrawn from IRAs. There is a line for the basis, which is the amount of after-tax contributions. The % of the withdrawal which is taxed is calculated using these figures. At no point are you given the opportunity to say "this IRA is after tax and that one is before tax". You have to lump all of them and do the calculations. Each year the basis changes and you have to keep track of it. Each custodian of your IRAs must note the value of your account each December 31 and report that figure to you, and to the IRS.

when i was 50, that all sounded "more trouble than it's worth" (could be wrong ...since there was no TMF etc)


I've been making SEPP withdrawals from an IRA with after-tax contributions for about 15 years. It's not a problem. Turbo-tax can handle it and keeps track of the remaining tax-paid basis from year to year.

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