Shortcut Navigation:

Question for the Money Doctors

Question submitted on Apr 17, 2012.


Re: RMD. Why can''t I withdraw the balance of the basis in my IRA after taking the RMD less the pro-rated basis this year?


The way the calculation is done on Form 8606, any basis you have in your IRA is pro-rated.  While this unfortunately prevents you from taking a tax-free withdrawal of your basis from your IRA as a source of funds, it does benefit you each year as the pro-rated portion of the basis used becomes the non-taxable portion of that year's RMD.

For additional information visit