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KWAnne
What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
There's no difference in the CONTRIBUTION. There's a bigKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
Assuming you are eligible for both, there is no taxKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
Besides the ability or not to take qualified distributionsKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
With a traditional IRA, you must start taking distributionsa Roth IRA or making a non-deductible contribution to a
traditional IRA?
Roth withdrawals are tax-free, withdrawals from traditionalKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
This is one of the few "no-brainers" in tax law. If you'reKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
There is a very big difference once you retire. AKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
The earnings on the traditional IRA are taxable - but aKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
You pay tax on the investment income on a regular IRA...notKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
Withdrawals from a Roth IRA are completely tax and penaltyKWAnne said:What, if anything, is the difference between contributing to
a Roth IRA or making a non-deductible contribution to a
traditional IRA?
Incomplete. Earnings on a traditional IRA are taxable. TheRoth withdrawals are tax-free, withdrawals from traditional
IRAs are taxed based on the proportion of deductible to
non-deductible contributions that were made to it (so if all
the contributions to the regular IRA were non-deductible,
then the withdrawals are also tax-free).
Actually even if all contributions are non-deductible, thereRoth withdrawals are tax-free, withdrawals from traditional
IRAs are taxed based on the proportion of deductible to
non-deductible contributions that were made to it (so if all
the contributions to the regular IRA were non-deductible,
then the withdrawals are also tax-free).
you mention:There is a very big difference once you retire. A
nondeductible traditional IRA will have everything you
withdraw subject to tax, and you will be required to take at
least minimum distributions annually. A Roth IRA will have
future withdrawals available tax-free, and there is no
requirement to take a minimum annual distribution. So if
you want to save that money for even later years, you may.
Contributions to a Roth IRA are subject to income
restrictions (don't have the numbers off the top of my
head), so if you're above that income, you must do the
traditional nondeductible.
nondeductible contributions to a traditional ira are made"A nondeductible traditional IRA will have everything you
withdraw subject to tax, and you will be required to take at
least minimum distributions annually. "
you mention:Roth withdrawals are tax-free, withdrawals from traditional
IRAs are taxed based on the proportion of deductible to
non-deductible contributions that were made to it (so if all
the contributions to the regular IRA were non-deductible,
then the withdrawals are also tax-free).
If your MAGI is above a certain limit (I think it's $110K
for individual filers) you are not eligible to make Roth
contributions at all.
not all withdrawals from the ira would be tax-free"Roth withdrawals are tax-free, withdrawals from traditional
IRAs are taxed based on the proportion of deductible to
non-deductible contributions that were made to it (so if all
the contributions to the regular IRA were non-deductible,
then the withdrawals are also tax-free)."
Well as a practical matter, it never is depleted unless youIncomplete. Earnings on a traditional IRA are taxable. The
exclusion from income stops when the non-deducted (or
post-tax) basis is depleted.
As the basis is prorated across the life of the expectedWell as a practical matter, it never is depleted unless you
liquidate all IRA's. Otherwise, you only use a fraction of
the remaining basis on any distribution.
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