[quote=no_such_reality]SK, let me check if I’m following.
Come time for me to start taking my minimum withdrawals, the only thing that matters is the balances on my ROTh accounts versus my non-ROTH accounts at the government appointed date.
Regardless of were I withdraw the money, if I have $200K in ROTH and $800K in IRA, by tax basis on any money taken from those accounts will be 80% taxable as if it came from the IRA, even if I take it all from the IRA (or ROTH).
The next year, the ratio is again checked, and the new ratio used.
Assuming laws remain the same. Do I have that about right?[/quote]
No. Roths and traditional IRAs are treated entirely separately.
I think maybe I wasn’t clear enough about non-deductible contributions. Those are NOT the same as Roth contributions. For taxpayer who have made non-deductible contributions to traditional IRA accounts, the important numbers are total FMV of all IRAs and amount of non-deductible TRADITIONAL IRA contributions.
Roths are treated by an entirely different set of rules. Very simple if the Roth’s have been around for 5 years or more and distributions are after age 59 1/2, then all tax free (which makes them qualifying distributions). Non-qualifying distributions are a little more complicated, but generally, non-deductible contributions come out first, rather than ratably.
