On Tuesday, February 1, 2022 at 11:54:57 AM UTC-5, Stuart O. Bronstein wrote:
ira smilovitz <[email protected]> wrote:
[email protected] wrote:
If I take out ROC payments from my traditional IRA, even though
ROCs aren't taxed until your cost basis is zero, I would still
pay taxes on the payout because its money "withdrawn" from my
IRA, right? Can't find any info on this online. Thanks!
What's an ROC payment?
I didn't know either. According to google it's Return of Capital.
And yes, even ROC withdrawals from a traditional IRA are taxed because
you never paid tax on those payments in the first place.
--
Stu
http://DownToEarthLawyer.com
--
If the original poster is referring to return of capital, then there could be basis in the IRA if he made after-tax contributions to it. In that case, distributions are not ordered as RoC first, then earnings. Each distribution is prorated between
taxable earnings and RoC.
Ira Smilovitz, EA
Leonia, NJ
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