Re: Tax on IRA Withdrawals

From: Jim McGrath <jimm@hi.com>
Subject: Re: Tax on IRA Withdrawals
Date: Wed, 10 Jun 1998 16:35:56 -0400

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>I'm 63 years old and have a regular IRA account (from my yearly
>contributions) and an IRA account (made up of my 401(k) rollover).
>
>The way I understand it, the taxable portion of IRA withdrawals are
>figured from 8606 information.  Also, I believe 8606 information does
>not include rollover information.
>

That is because rollovers are entirely untaxed.  An 8606 is filed anytime a
nondeductable (after tax) IRA contribution is made.

>Therefore is it true that withdrawals from my regular IRA have a
>different tax calculation than withdrawals from my rollover from 401(k)
>IRA account?

No.  An IRA is a single entity that may have many accounts.  A withdrawal
is treated as if it is coming from the sum of all accounts.  Form 8606 is
used to calculate what portion of the withdrawal is not taxable.

Jim



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