Permalink Submitted by Alan - IRA critic on Wed, 2017-05-17 19:04
No. And they will not be if you report the non deductible TIRA contribution on Form 8606 for the year of that contribution. This establishes a ratio of such contributions as a portion of your total balance. When you later report a distribution this ratio is applied on Form 8606 and a portion of your distribution is not taxed. But it comes out pro rated, so you cannot just apply the basis to the first dollars you take out.
Permalink Submitted by Alan - IRA critic on Wed, 2017-05-17 19:04
No. And they will not be if you report the non deductible TIRA contribution on Form 8606 for the year of that contribution. This establishes a ratio of such contributions as a portion of your total balance. When you later report a distribution this ratio is applied on Form 8606 and a portion of your distribution is not taxed. But it comes out pro rated, so you cannot just apply the basis to the first dollars you take out.