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Please help. I'm confused. What happens if several years ago contributions were made to a traditional IRA account but never deducted on the tax returns? It's been over 4 years so I guess it's too late to ammend them. Now my mother (age 63) withdrew the funds and they appear to be fuly taxable as current income. This equals double taxation on the money ($12,000). Right? No withholding. On top of that they may have not been originally fully deductible because she was employed in a retirement/pension plan position. I need to get back years info and check the limits. She doesn't remember when she made the deposits and for how much. Would the bank have a history going back maybe 10 or so years with deposits and interest? I'm panicked now but to me it looks like maybe 28% of $12,000 plus fine for not enough withholding = 3 or 4K
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