Sentences with phrase «from nondeductible»

Of that $ 20,000, $ 13,000 was taxable upon the conversion, and $ 7,000 was not because it came from nondeductible IRA contributions.

Basis, also referred to as after - tax balances, accrue in retirement accounts from nondeductible contributions and rollovers of after - tax amounts to IRAs.

You might have a traditional IRA with basis from nondeductible contributions or rollovers.

For example, if 60 % of your IRA balance comes from nondeductible contributions and you convert $ 8,000 of that IRA, you'll report $ 3,200 of income from the conversion (40 % of $ 8,000).

In the case you do have basis from nondeductible contributions, effectively you get credit for it spread evenly throughout your retirement.

«States can shift from nondeductible over-the-cap state income taxes to still - deductible employer - side payroll taxes,» the economists» report stated.

Not exact matches

Unfortunately, the IRS clearly states the daily transportation expenses you incur when traveling from home to the office are generally nondeductible.

Does driving home in the middle mean that the trips home and to client B are now nondeductible (because they are from my nonqualifying home office), so I can't even deduct what it would have cost me to go directly from A to B?

Even if you're not eligible to deduct your traditional IRA contribution, you can make nondeductible contributions and still benefit from tax - deferred investment growth.

With an investment strategy that emphasizes long - term capital gains, it's sometimes possible to do better in a taxable savings account than a nondeductible IRA from which you make taxable distributions.

Once you make a nondeductible contribution to a Traditional IRA or rollover after - tax amounts, any distributions taken from the IRA will include a prorated amount of pre-tax and post-tax assets.

Nondeductible contributions may necessitate some very complicated paperwork when you begin withdrawals from your account.

Contributions are nondeductible — therefore, unlike the Traditional IRA, distributions from an Educational IRA are penalty free and tax - free

In later years, when you start taking distributions from your Traditional IRA, that nondeductible contribution will not be taxed upon withdrawal.

FROM A TAX PERSPECTIVE, you can think of a tax - deferred variable annuity as similar to a nondeductible IRA.

Expenses that are more than the income you made from your hobby are nondeductible personal losses.

By contributing to the nondeductible IRA, you will only be responsible to pay what gains you'll have from now until you convert in 2010.

Once you make a nondeductible contribution or roll over after - tax amounts to any of your Traditional, SEP or SIMPLE IRA, any subsequent distributions from any of your Traditional, SEP or SIMPLE IRAs will include a prorated amount of pretax and post-tax assets, as these IRAs are aggregated for the purposes of determining the taxable amount of any distributions.

Note that withdrawals from deductible and nondeductible traditional IRAs are subject to ordinary income taxes and if withdrawn prior to age 59 1/2 may be subject to an additional 10 percent federal income tax penalty (for nondeductible traditional IRAs, only the portion of the withdrawal attributable to earnings is taxable).

Unfortunately, payments of any fines or penalties to the government are nondeductible from taxable income even if it was connected to a business purpose.

There is one big exception: driving from home to your office (and vice versa) or another regular place of business is considered a nondeductible commuting expense.

«If you make your contribution to the nondeductible traditional IRA and then leave it there until it accumulates sufficient investment income to exceed the full contribution amount before you convert it, you will have to reverse the excess amount of the conversion before the end of the year or face a fine from the Internal Revenue Service.