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Should I Have A Deductible Funded IRA And A After Tax IRA? |
If I capitalize an IRA that is deductible, then the whole IRA value is taxible when withdrawls are made. If I fund an IRA with after tax dollars, then only the growth is taxible. Thus my proposition beyond the shadow of a doubt is should I have separate IRAs to keep the book keeping simple or is there
| Answer: Somethin' you're missin'. :-) IRS doesn't keeping how you have your IRAs segregated. If you've made after-tax contributions to an IRA (your "basis"), you'll pull through your basis pro-rata, year-after-year, for your lifetime, and that of your beneficiaries. Example. |
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