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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29932
Experience:  Taxes, Immigration, Labor Relations
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If you have contributed both pre tax and after tax dollars

Customer Question

if you have contributed both pre tax and after tax dollars to a traditional ira, can you withdraw the after tax dollars first?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions.

If your traditional IRA includes nondeductible contributions and you received a distribution from it in 2015, you must use Form 8606 to figure how much of your 2015 IRA distribution is tax free.

We should allocate distribution between taxable and nontaxable parts ,

but we may NOT allocate distribution to nondeductible contributions first.

Sorry if you expected differently.

Expert:  Lev replied 1 year ago.

While the above is correct for federal tax purposes -

because you are from MA - for MA tax purposes, the IRA distributions are fully exempt from tax as MA doesn't allow IRA deductions.

Let me know if you need any help with reporting.