Ask the Expert: Avoiding extra IRA taxes
Quick ReadHow can I avoid paying taxes on money that's already been taxed?
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When I retired in 2001, I transferred my 401(k) account into an IRA. Thirty percent of that money was my after-tax 401(k) contributions. But when I began taking required annual IRA distributions in 2004, I paid taxes on my total distributions. In the future, how can I avoid paying taxes on money that's already been taxed?
By filing tax Form 8606 every year. It tells the Internal Revenue Service...
