IRA Rules

Posts Tagged ‘roth ira withdrawal for home purchase’

Question: Non-deductible contributions to a regular IRA, do I pay taxes on them again upon withdrawal?

My income doesn’t allow me to contribute to a Roth IRA nor make deductible contributions to a regular IRA. So after funding my 401K I also make a contribution to my regular IRA. When I withdrawal from that in future years, do I have to again pay taxes on my original contributions?

Answer: No, but make sure you keep good records so you can tell which money is which if you mix them. I would keep them in their own account.

In 2010 they can be converted to a ROTH no matter what your income. Read publication 590 for the details at IRS.GOV.

Roth IRAs