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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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Can you take money from a IRA after age 59 and a half, without

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Can you take money from a IRA after age 59 and a half, without paying income tax
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.
Hello and thank you for using Just Answer. Distributions are taxable as ordinary income (except for the portion that represents a return of nondeductible contributions). You must report the withdrawal on your federal income tax return. There is no early withdrawal penalty or minimum distribution requirement until age 70 1/2 and later.
Customer: replied 7 years ago.
I do not understand what you mean by, except the portion that represents a return of nondeductible contributions
Customer: replied 7 years ago.
Please answer my last question
Expert:  Marvin,EA replied 7 years ago.
Nondeductible contributions are contributions to a IRA that are not eligible for taxable income reduction. Taxpayers must use Form 8606 to report contributions to a nondeductible IRA. For example: If you are limited under active participation rules to a $1,200 IRA deduction from taxable income, you may still contribute the full $5,000 to an IRA account. The result would be an IRA deduction of $1,200 and a nondeductible IRA contribution of $3,800. You must use Form 8606 to report nondeductible IRA contributions.
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