Sentences with phrase «withdraw nondeductible»
If you bequeath your IRA, your beneficiaries won't have to pay taxes when they withdraw those nondeductible contributions.
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In addition, you can withdraw nondeductible contributions (but not earnings on those contributions) at any time without triggering taxes or penalties.
In addition, you can withdraw nondeductible contributions (but not earnings on those contributions) at any time without triggering taxes or penalties.
If you made nondeductible contributions to a traditional IRA at any time in the past, and haven't previously withdrawn the nondeductible contributions, then your partial conversion will be partly nontaxable.
Not exact matches
Similarly, the term «nondeductible IRA» includes not only a regular IRA for which deductions aren't available, but also a Roth IRA if you expect to withdraw the earnings before age 59 1/2 and pay tax on the distribution.
These accounts work much like Roth IRAs, allowing you to make nondeductible contributions, build up investment earnings inside the account, and eventually withdraw the money, including earnings, without paying any tax if the money is used for college expenses.
Note that withdrawals from deductible and nondeductible traditional IRAs are subject to ordinary income taxes and if withdrawn prior to age 59 1/2 may be subject to an additional 10 percent federal income tax penalty (for nondeductible traditional IRAs, only the portion of the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).