IRA Distribution Calculation
When calculating for RMDs, do you count the total IRA balance as of 12/31 of the prior year, INCLUDING any AFTER-TAX contributions that may have been made to the IRA?
When calculating for RMDs, do you count the total IRA balance as of 12/31 of the prior year, INCLUDING any AFTER-TAX contributions that may have been made to the IRA?
Permalink Submitted by Alan Spross on Mon, 2008-01-28 20:03
Yes, the balance for RMD purposes includes both after tax basis and pre tax amounts.
Permalink Submitted by Edward Czapor on Mon, 2008-01-28 20:06
Yes, the entire balance is included. The taxable portion of the RMD distribution is calculated on Form 8606 which should be filed with your tax return. You must know what your after tax contributions are (IRA basis).
This should have been kept track of on Form 8606 for every year an after tax non-deductible contribution was made. If you did not file these forms, you can and must file stand alone copies for each year to establish your basis with the IRS.
Ed C.