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3 Cards in this Set
- Front
- Back
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Gross Income
I. IRA Income |
Taxation of Distribution :
1- Traditional deductible IRA distributions (Ordinary Income) - TAXABLE 2- Roth IRA - NON-TAXABLE 3- Traditional Non-deductible IRA ( (1) Principal - NON-TAXABLE (2) Accumulated earnings - TAXABLE (when withdrawn) |
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Gross Income
EXCEPTION to IRA Penalty Tax (still subject to ordinary income tax) - <HIMDEAD> |
No penalty if the premature distribution was used to pay:
( 1 ) Home buyer (1st time): $10,000 maximum exclusion applies(within 120 days of the distribution). (2) Insurance (medical) (a) Unemployed with 12 consecutive weeks. (b) Self-employed (who are eligible) (3) Medical expenses ( in excess of 7 . 5% of AGI) (4) Disability (permanent) (5) Education (6) Death |
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