Keeping Track of Nondeductible IRA Contributions Can Be a Taxsaver

Most taxpayers report all traditional IRA account withdrawals as taxable distributions on their tax returns, although some of the money withdrawn often consists of nondeductible (after-tax) distributions that are not subject to income taxes. So, they’re overpaying their taxes. What happens is that after-tax contributions are often lost when taxpayers either forget that these amounts […]