IRA taxes
In 2009 I received a lump sum from VA for back disability benefits that were due to me. I put part of that money into an IRA at a credit union. A short time later I rolled the money from that IRA...
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So sorry I have no answers but I do hope someone does since I think this is a great question myself and have wondered the same. Thank you for your service :-)
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Rodkeen, I will be the first to admit that I don't have an answer for you, but we do have some financial wizards on this board that may be able too. It is best if I m...Read More
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"disability benefits are not taxable"This is true. However if you put this money in an account that earns interest, the earned interest could be taxable. It sounds like this is happening for the...
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rodkeen wrote: In 2009 I received a lump sum from VA for back disability benefits that were due to me. I put part of that money into an IRA at a credit union. A short time later I rolled the money...
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Welcome aboard and thank you for your service. It won't matter that the funds were originally disability benefits. There is a penalty for early withdrawal of the IRA. In addition, any interest...
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IMHO. In 2009, you made a contribution to a traditional IRA and presumably properly reduced your taxable income for that tax year by that amount. When you ultimately withdraw funds from that...
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nickfuhs wrote:IMHO. In 2009, you made a contribution to a traditional IRA and presumably properly reduced your taxable income for that tax year by that amount. When you ultimately withdraw funds...
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The IRS wouldn't care that the money you put into an IRA came from the VA, you don't have to prove anything. Once in an IRA, it is under IRA rules. But, I do have a question, did you have earned...
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I agree 100% with MB. If you did not have enough "earned income" EG (a job) and you established an IRA with your disability pay then you have a problem. As someone mentioned you should get withan...
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I agree with two of the earlier conclusions. VA disability pay and IRAs are totally separate issues. The question should most likely be taken to a tax expert if the amounts involved are appreciable....
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I to agree with all of the above reply's, one other thing to consider, even if he had earned income there is a limit on the amount one can contribute to an ira, the amount varies depending on filing...
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ksgrunt wrote: I to agree with all of the above reply's, one other thing to conside...Read More
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I have one bit of advise. Make sure you get this straightened out to IRS satisfaction, get the names of IRS workers recorded, and save the paperwork forever. I had a flap with IRS in 1982 and they...
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