![]() ![]() Next, subtract this amount from the number 1 to arrive at the taxable portion of your traditional IRA.įinally, multiply this number by the amount you withdrew from your traditional IRA. Take the total amount of nondeductible contributions and divide by the current value of your traditional IRA account - this is the nondeductible (non-taxable) portion of your account. ![]() If you had any nondeductible contributions (not common), the calculation gets a little more complicated.įirst, you'll need to figure out how much of your account is made up of nondeductible contributions. Withdrawals from a traditional IRA If all of your contributions to your traditional IRA were tax-deductible, the calculation is simple - all of your IRA withdrawal will be counted as taxable income. Here's what you need to know to calculate the taxable amount of any withdrawal from a traditional or Roth IRA. Depending on the type of IRA account you own, when you made your withdrawal, and whether your contributions were deductible, the taxable amount of an IRA withdrawal can vary significantly.
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