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Re: Interest/Dividends from IRA

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be withdrawn at will, are these proceeds (and not the principle) 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

Reply to
Steve Pope
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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).

Reply to
D. Stussy

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