• ROC taken from a Traditional IRA

    From J S@21:1/5 to All on Tue Feb 1 10:44:12 2022
    If I take out ROC payments from my traditional IRA, even though ROCs aren't taxed until your cost basis is zero, I would still pay taxes on the payout because its money "withdrawn" from my IRA, right? Can't find any info on this online.
    Thanks!

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  • From Stuart O. Bronstein@21:1/5 to ira smilovitz on Tue Feb 1 11:50:07 2022
    ira smilovitz <ira.smilovitz@gmail.com> wrote:
    joelstei...@gmail.com wrote:

    If I take out ROC payments from my traditional IRA, even though
    ROCs aren't taxed until your cost basis is zero, I would still
    pay taxes on the payout because its money "withdrawn" from my
    IRA, right? Can't find any info on this online. Thanks!

    What's an ROC payment?

    I didn't know either. According to google it's Return of Capital.

    And yes, even ROC withdrawals from a traditional IRA are taxed because
    you never paid tax on those payments in the first place.

    --
    Stu
    http://DownToEarthLawyer.com

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From ira smilovitz@21:1/5 to Stuart O. Bronstein on Tue Feb 1 12:12:11 2022
    On Tuesday, February 1, 2022 at 11:54:57 AM UTC-5, Stuart O. Bronstein wrote:
    ira smilovitz <ira.sm...@gmail.com> wrote:
    joelstei...@gmail.com wrote:

    If I take out ROC payments from my traditional IRA, even though
    ROCs aren't taxed until your cost basis is zero, I would still
    pay taxes on the payout because its money "withdrawn" from my
    IRA, right? Can't find any info on this online. Thanks!

    What's an ROC payment?
    I didn't know either. According to google it's Return of Capital.

    And yes, even ROC withdrawals from a traditional IRA are taxed because
    you never paid tax on those payments in the first place.

    --
    Stu
    http://DownToEarthLawyer.com
    --

    If the original poster is referring to return of capital, then there could be basis in the IRA if he made after-tax contributions to it. In that case, distributions are not ordered as RoC first, then earnings. Each distribution is prorated between
    taxable earnings and RoC.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From ira smilovitz@21:1/5 to joelstei...@gmail.com on Tue Feb 1 11:16:56 2022
    On Tuesday, February 1, 2022 at 10:44:56 AM UTC-5, joelstei...@gmail.com wrote:
    If I take out ROC payments from my traditional IRA, even though ROCs aren't taxed until your cost basis is zero, I would still pay taxes on the payout because its money "withdrawn" from my IRA, right? Can't find any info on this online.
    Thanks!

    --

    What's an ROC payment?

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)