From: Portland,OR

Dear TaxMama,

I'm now 60 1/2 and I need to cash out two IRA's.

I need to know if I must declare the money as reqular income or is it a capital gain?

Wayne

 

 

 

Hi Wayne,

Anything you take out is regular income, just like pension income.

Make sure to look back in your records to see if any of your contributions to your IRA were with after-tax dollars.

In other words, your income might have been too high, and you might have had a pension at work, so you might have been ineligible for a deductible IRA in some years.

That might reduce some of your tax.

Happy retirement!

Best wishes,

Best wishes,
Eva Rosenberg, MBA, EA