Decisions about IRA withdrawals have implications for taxes and estate planning. In January 2001, the government released substantial revisions to the proposed regulations for calculating minimum distributions for traditional IRAs and the determination of a designated beneficiary for distributions after death. You might find it beneficial to consult a certified financial planner or other qualified professional. The information in this update is based on current tax law. Consider the possibility of future tax law changes as you make your IRA and other retirement planning decisions.
Compensation includes wages, salary, bonuses, self-employment income.
Compensation includes wages, salary, bonuses, self-employment income. Always nondeductible from current income tax. Taxation of Distributions Entire distributions of deductible IRA taxed as ordinary income. Investment return portion of a nondeductible IRA taxed as ordinary income. Health insurance premiums if unemployed over 12 weeks.