Re: Interest/Dividends from IRA

Jun 22, 2009 1 Replies


HOWEVER..... If an IRA account were to have investments in


>tax exempt securities, and the interest from those securities are
>designated to be paid into a non-IRA account, where they may
>be withdrawn at will, are these proceeds (and not the principle) >still tax exempt ?

No. Any funds coming out of an IRA account are fully taxed (and, possibly, penalized) regardless of the internal source of the funds within the IRA.


Steve

Not fully taxed, but taxed. The difference in my statement vs. yours is that I recognize that some IRA accounts may have a basis (non-deducted contributions, including rollovers from similar accounts with a basis).

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