Sentences with phrase «with nondeductible contributions»

If you funded your IRA with nondeductible contributions, then you will owe taxes on the earnings only.

First, it could mean a smaller tax bill if you have an IRA with nondeductible contributions that you plan to convert to a Roth IRA.

The A in IRA stands for Arrangement, not Account as most everybody thinks, and your Traditional IRA can invest in many different things, stocks, bonds, mutual funds, etc with different custodians if you choose, but your basis is in the IRA, not the specific investment that you made with your nondeductible contribution.

Not exact matches

The need to save for a secure tomorrow, combined with the power of tax - deferred earnings, makes nondeductible IRA contributions a promising alternative for individuals no longer eligible for deductible IRA contributions.

Because the aggregation rule makes the taxable distribution the same no matter which account you convert, you can't reduce the taxable distribution amount by converting an IRA with a larger proportion of nondeductible contributions.

It's called Form 8606, a tax document that must be completed and filed with your income tax return to report both nondeductible traditional IRA contributions and withdrawals whenever they occur.

Example: You have a traditional IRA with a balance of $ 10,000, which includes $ 6,000 of nondeductible contributions.

If your income is very high, you might not be able to deduct the Traditional IRA contribution (wholly, or in part) on your 2016 tax return either, and if you are in that high - earner category, you should file Form 8606 with your tax return to tell the IRS that you have made a nondeductible contribution to your Traditional IRA.

With a Roth IRA, contributions are nondeductible and taxed in the year they are earned.

That might leave you with just a single IRA, containing nondeductible contributions.

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