[quote=SK in CV]What do you mean by a “post tax IRA”? A Roth IRA? Roth distributions, if all the requirements are met, are tax-free.
Distributions from non-deductible IRAs are partially tax-free. Essentially, you get “basis” in your IRA and the basis is recovered each distribution year based on the ratio of basis to total value at the beginning of the year.[/quote]
By POST-TAX IRA I mean an IRA that you contribute to using after tax dollars that isn’t a ROTH (also I think called Non-deductible traditional IRAs) So I think it’s what you are referring two in your second paragraph..
And if so, that’s what I thought.
If you contributed to a non-deductible IRA, when it comes time to distribution each year, you aren’t taxed on portion of the withdraw that is
Second question… What if you were a bonehead and co-mingled IRA contributions using your after tax dollars into a Rollover IRA? Should people bite the bullet and separate it out or reverse it and keep Non-deductible IRA contributions in a distinct IRA account seperate from a Rollover IRA?
