Are post tax IRA gains taxed?

Claudio Drullard: This has been a debate for a mutually as and after examining the arguments, i think of of it probably makes no distinction. Paying taxes later vs now must be probably a undesirable thought different than you think of of you would be in a much better bodily efficient tax bracket at retirement. There are on line calculators that can assist you-attempt searching for 401k vs roth ira. My difficulty is which you be effective to make contributions a minimum of inspite of volume your on line company company suits on your 401k-it particularly is loose funds and is the main perfect deal around! you additionally can initiate up a Roth IRA as nicely on your 401K...Show more

Lourie Mcroberts: The gains on post-tax contributions to an IRA are taxed. The contributions are not. The non-taxable portion of your IRA distributions during the year is the ratio of all your after-tax contributions.Let's say your IRA is worth $100,000. You put in $30,000 as deductible co! ntributions and $20,000 in nondeductible contributions. That means 20% of your IRA is from nondeductible contributions. When you retire and take out $5,000, you will have $4,000 taxable income and $1,000 (20%) nontaxable.I hope this helps.Gary...Show more

Maynard Reevers: A ROTH IRA is a post-tax IRA. The gains are not taxed as long as you wait until retirement age to take them out.

Talisha Digrande: If you make a contribution to a traditional IRA and you do not take a deduction for it, your contribution is never taxed. However, gains are taxed as ordinary income when you take distributions.If you are unable to take a deduction for a traditional IRA, and your income it too high for a Roth IRA contribution, you can still roll your IRA to a Roth IRA in 2010. There are no income restrictions for the rollover in 2010....Show more

Violette Vanek: You are correct. The proportion of the gains from post tax contributions is not taxed when withdrawn. But you ne! ed to keep good records of the contributions.

Clemmie Bu! rkleo: The cost basis is not taxable.EVERYTHING else is. So yes, the investment gains are taxable.When you start taking distirbutions, unless you take the entire balance, you will pro-rate the cost basis, taking a little each time.Form 8606 will be used to calculate this....Show more