I know that investment losses on normal IRAs aren deductible but what about investment losses I have incurred in my non-deductible IRA account?
Since you received no deduction for your IRA contribution you have a tax basis equal to your contributions. If you liquidate a non-deductible IRA for less than your basis you have a deductible loss that can be claimed as a miscellaneous itemized deduction that is subject to the 2% AGI floor. Go to TOP QUESTION: Can I withdraw my retirement funds to pay for my children’s college costs without incurring the 10% early distribution penalty if I am not yet 59 1/2? ANSWER: Only the IRA rules allow you to do this. The 10% penalty will apply to distribution from other qualified plans (i.e. 401(k)). In any event, the amount that is withdrawn is subject to income tax. Go to TOP QUESTION: Does the $10,500 limit on 401(k) contributions for 2000 apply per employer or is it the total allowed per employee? ANSWER: The 401(k) maximum contribution limits apply per individual. If you have more than one employer during the year, you must be sure to not go over this limit to avoid excess deferred penaltie
Related Questions
- I know that investment losses on normal IRAs aren deductible but what about investment losses I have incurred in my non-deductible IRA account?
- Can I buy the securities with Monthly Investment Plan account via Normal Order, Market Order and At-auction Order and At-auction Limit Order?
- What is the difference between the RBF Investment Account and my normal bank savings account?
