Section - IRA Distributions - Distributions from Traditional IRAs

4 important questions on Section - IRA Distributions - Distributions from Traditional IRAs

When are distributions of principal (contributions) taxable?

If you deducted a traditional IRA contribution on your tax return when you made it, that contribution is taxable later upon withdrawal

When are distributions of earnings taxable from traditional IRAs?

Distributions of earnings from traditional IRAs are always taxable

How is a distribution from a nondeductible, traditional IRA allocated?

A distribution from a nondeductible, traditional IRA is allocated between principal (contributions) and earnings pro rata based on relative amounts in the IRA account at the time of the distribution.
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When must taxpayers start taking required minimum distributions (RMDs)?

Taxpayers are required to start taking required minimum distributions (RMDs) by April 1 of the year after the taxpayer reaches age 73 (if born between 1951–1959) or age 75 (if born later).

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