Page 27 - Investment Advisor March 2022
P. 27
10
Rules to Know
About IRAs
and Taxation
BY EMILY HOLBROOK AND GINGER SZALA
Here are some inside When are funds in an IRA taxed?
tips on how to prepare 1 Funds accumulated in a traditional IRA generally are
not taxable until they are distributed. Funds accumulated in
a Roth IRA may or may not be taxable on distribution. Special
for tax season and rules may treat funds accumulated in an IRA as a “deemed
distribution” and, thus, includable in income under the rules
retirement savings. for traditional IRAs and for Roth IRAs. A distribution of a
nontransferable, nonforfeitable annuity contract that provides
for payments to begin by age 72 (70½ prior to 2020) and not to
extend beyond certain limits is not taxable, but payments made
under such an annuity would be includable in income under
the appropriate rules.
MARCH 2022 INVESTMENT ADVISOR 25
