Gift of cash to me I put in ira- Will the withdrawal be taxable?

Will the withdrawal be taxable income now.

No, but any interest you earned will be. A gift represents a taxable event to the donor, not the recipient. So even if you had just put it into a regular investment, you wouldn't owe taxes on it. But any income you earned will become taxable.

When you put the money into the IRA, did you have taxable EARNED income in that tax year? If not, then you were NOT ELIGIBLE to contribute to the IRA, and you should withdraw the money ASAP!

The answer to this question is - it depends:

(a) If you put the money into a Roth IRA and the account is at least 5 years old when you make the withdrawal then it is not taxable. If the Roth account is less than 5 years old when you make the withdrawal then the earnings are taxable, but not the original amount you invested.

(b) If you put the money into a traditional IRA then the fraction of the withdrawal that is attributable to earnings plus pre-tax contributions is taxable, and the portion attributable to after-tax contributions is not. "Pre-tax contributions" means IRA contributions for which you took a deduction, and "after-tax contributions" means contributions that you did not deduct.

(c) In all cases if you make a withdrawal prior to age 59-1/2 then you may also owe a 10% early withdrawal penalty, unless you use the funds for one of the exceptions allowed by the IRS. Post back if you need more info on this.