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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2583
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Money withdrawn from an IRA is taxable. However Gould the VA

Customer Question

Money withdrawn from an IRA is taxable. However Gould the VA be able to view it as non earned income? The
Money was earned years aho , why should I be penalized for spending it now?
Submitted: 4 months ago.
Category: Finance
Expert:  Mark Taylor replied 4 months ago.

Hi, my name is***** will be happy to help you with your questions. Is this a traditional IRA?

Customer: replied 4 months ago.
it is
Expert:  Mark Taylor replied 4 months ago.

Distributions from a traditional IRA would be taxable. The reason for this is that the money that you contributed to the IRA account was not taxed. For your contributions you received a deduction on your tax return.

Expert:  Mark Taylor replied 4 months ago.

Did you make any non-deductible contributions to the IRA account?

Customer: replied 4 months ago.
I understand that do not dispute it. However my question is is the veterans Veterans Administration able to consider it as unearned income since it was earned in prior years
Expert:  Mark Taylor replied 4 months ago.

Sorry, I thought that you were referring to the income tax aspects of IRA distributions. Are you asking for what is considered income for the financial assessment (means test)?

Customer: replied 4 months ago.
I am referring to the means assessment test at the VA uses. They are counting my withdrawals from Ira as uneared income and I don't believe that to be correct can you help?
Expert:  Mark Taylor replied 4 months ago.

http://www.va.gov/healthbenefits/resources/publications/ib10-454_quick_reference_guide_income_and_assets.pdf

Yes, the VA considered IRA distributions to be income.

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