Thanks for correcting me and giving the OP the correct info. I had my mind focused on when a TP just makes an excess contribution to a Roth, etc. I should have known better and checked my TaxBook.
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One more try...
Larry: The part of the IRA total that represents interest is *not* taxable in 2007 in the scenario you have described, since the interest was - based on your description - transferred in a trustee-to-trustee transfer that satisfies the requirements to be a "recharacterization" from the [Roth] IRA where it was earned to the [traditional] IRA where it is now *considered* to have been earned based on the tax laws. This interest should be taxed only once, and that's when the IRA owner takes it out of his IRA, really really out, not just moving it to another IRA - probably at 70-1/2, orj, maybe, before that....
Your last post makes it sound like you're still waffling! Is the excerpt from the IRS publication not clear and convincing? I would post the Internal Revenue Code section that deals with this, but that is really *not* clear, *not* convincing, *not* easy to read, *not* easy to understand, and even - get this - hard to explain, wouldja believe...!Last edited by les grans; 11-10-2007, 02:43 PM.Comment
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les grans, I think
I understand -- finally. Yes, I agree with your last post. Taxable when withdrawn. Thanks again for keeping on this until this old brain was able to absorb. I don't know how in the heck I ever passed the EA exam. Especially at the age I was. Well, yes I do. The Lord has been good to me. And especially for having collegues as are on this board.
Thanks again.
LarryComment
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