Taxes
I am currently 72 and I’m looking at next year where I have to take my RMD. In my 20’s and 30’s I sent money already taxed to a fund. Probably $100.00 every month. After awhile I stopped contributing and let it ride. At some point they labeled it an IRA. All money sent in was taxed prior to sending it in. How will I be taxed on this?
Terry Says
Do you have the paperwork, with the title on the account? Is it labeled an AFTER-TAX IRA?
Contact the IRA custodian and confirm that this is considered all after-tax money, in terms of the contributions.
Please read this article, as it is important that your custodian differentiated the contributions as after tax. Otherwise you’ll receive a 1099R for withdrawals:
https://www.investopedia.com/terms/a/aftertaxcontribution.asp
If this was properly documented, then all money withdrawn (contributions and earnings) will come out tax-free.
Your custodian will have all the answers.
