Re: Interest/Dividends from IRA

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Subject Author Date Re: Interest/Dividends from IRA Steve Pope 06-22-2009  Re: Interest/Dividends from IRA D. Stussy 06-22-2009
Posted by Steve Pope on June 22, 2009, 5:20 pm Please log in for more thread options >HOWEVER..... If an IRA account were to have investments in >tax exempt securities, and the interest from those securities are >designated to be paid into a non-IRA account, where they may >be withdrawn at will, are these proceeds (and not the principle) >still tax exempt ? No. Any funds coming out of an IRA account are fully taxed (and, possibly, penalized) regardless of the internal source of the funds within the IRA. Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by D. Stussy on June 22, 2009, 11:11 pm Please log in for more thread options > >HOWEVER..... If an IRA account were to have investments in > >tax exempt securities, and the interest from those securities are > >designated to be paid into a non-IRA account, where they may > >be withdrawn at will, are these proceeds (and not the principle) > >still tax exempt ? > > No. Any funds coming out of an IRA account are fully > taxed (and, possibly, penalized) regardless of the > internal source of the funds within the IRA. Not fully taxed, but taxed. The difference in my statement vs. yours is that I recognize that some IRA accounts may have a basis (non-deducted contributions, including rollovers from similar accounts with a basis). -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >>