What’s Not Taxable of Your IRA and 401(k) Distributions?
Generally, your IRA and or company 401(k) distributions are taxed as ordinary income. That’s because you funded them with tax-deductible contributions and all the earnings of these contributions have been tax-deferred. So nothing has been taxed. Taking a distribution before turning 59½ will add a 10% penalty tax to the income tax. Nevertheless, you may have made some ‘after-tax’ contributions to them, [...]
Categories: 401k distributions, ira distributions Tags: 401k distribution, 401k distriubution, ira distribution
