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BUT may be worth the trouble and i just don't see it.

What trouble? You keep track of your non-deductible IRA contributions. That strikes me as some fairly basic addition that most third graders are well-equipped to handle.

You also have to know the value of your IRA accounts. If you have more than one, you'll need that third grader again to handle the addition for you.

Then you divide those two numbers into each other. I realize this might require a 5th or 6th grader, as long division is a bit of higher math. That division will give you a decimal fraction between 0 and 1.

Next, multiply your withdrawal by that fraction. This will again require the services of that 5th or 6th grader, so be sure not to lay them off the payroll until you get both bits of math out of them. And make sure they round the result off to the nearest whole dollar. The result of this multiplication is the amount of the withdrawal that is not taxable.

Finally, you'll need the 3rd grader back to do some subtraction. Subtract the non-taxable withdrawal from the remaining balance of your non-deductible contributions. That's what you get to take out tax free in future years.

I've tried to make this as complicated as I could. I still don't see an accounting nightmare. It does require the responsibility to keep track of things from year to year. The IRS even helps out with this as everything you do need to track from year to year is on Form 8606 which is a required part of your tax return any time you make a non-deductible contribution or a withdrawal from an IRA after you made a non-deductible contribution. That's one lousy piece of paper (or two if you don't print on both sides) that you have to keep track of from year to year.

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