RMD from a Traditional IRA
Posted 01 September 2011 - 09:01 AM
Any thoughts? If you can provide a particular tax code section that would be great.
Posted 01 September 2011 - 10:04 AM
However, from my reading Roth IRAs are identified as a tax-exempt vehicle and not as a tax deferred account.
I like the way you think
Just to ensure you don't get caught up in semantics when reading the technical stuff, the taxes in a Roth IRA are deferred until the time they become exempt. This becomes a reality when you take a distribution that includes earnings that do not meet the conditions for being a qualifying distribution.
A good way of looking at it is: "tax deferred" would be a fruit where "tax exempt" would be an apple. An apple is a fruit, but a fruit isn't necessarily an apple. I'm trying the analogy thing, hope it works.
Posted 01 September 2011 - 10:10 AM
Edited by masteff, 01 September 2011 - 10:10 AM.