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welldavid
Jan 22, 2011, 03:02 PM
Do I have to pay any taxes on with withdrawing an matured ira

MukatA
Jan 22, 2011, 07:53 PM
Yes, the withdrawal is taxed as your normal income.

ebaines
Jan 23, 2011, 04:32 PM
There are a couple of exceptions to what Mukata said

A. If you made any after-tax contributions to your traditional IRA, then a portion of your withdrawal is considered to be a return of that contribution, and that portion is not taxed a 2nd time, or

B. If the withdrawal is from a qualified Roth IRA - meaning a Roth IRA that has been in effect for at least 5 years - then it is not taxed.