Truth 6 Distributions from IRAs
According to the great Supreme Court Justice Oliver Wendell Holmes, “No generalization is worth a damn, including this one.” Holmes was not talking about distributions from IRAs, but he could have been.
There are a number of generalizations about distributions from IRAs that are either confusing or downright wrong. Here are a couple of them.
Generalization 1: All distributions from traditional IRAs are taxable
Whether you are taxed on the distributions you take from your traditional IRA depends on whether you deducted your contributions to the traditional IRA. Although ...