# of Years Total Value at End of $2K Sum of the of Term at 8% Contributions Contributions Annually 10 $20,000 $28,973 20 $30,000 $54,304 30 $40,000 $91,524 40 $50,000 $146,212 Just as with tax-deductible retirement plan contributions, non-deductible contributions
compound tax-free every year the money remains in your account.
As at any meeting of ISNA, a request is made for contributions to the ISNA-Nurses PAC (Political Action Committee) This year $1,615 was collected in non-deductible contributions
and pledges The meeting ended with the newly elected officers and board members taking the oath of office.
(1) Non-deductible contributions
. What portion of the IRA value reflects non-deductible contributions
In 2010 annual non-deductible contributions
of $2,000 per beneficiary can be made.
If a client owns an IRA with nontaxable non-deductible contributions
, the charitable rollover distribution will come first from the taxable amount (deductible contributions and earnings).
IRA accounts with basis (non-deductible contributions
) and Roth IRA accounts that are distributed in the full amount and have losses are also deductible.
. The distinguishing features of the Roth IRA, when compared to a traditional IRA, are that contributions to a Roth are made on a non-deductible basis and the tax benefit is realized when funds are withdrawn.
* Your Traditional account has been open for a short period of time and most of the balance is comprised of non-deductible contributions
: Since there is little growth in your current IRA and since no taxes are owed on non-deductible IRA contributions, your tax liability will be low at conversion because taxes are only paid on the growth funds and on the deductible contributions.
Exceptions to 10% Excise Tax on Non-Deductible Contributions
Since the determination of deductibility of IRA contributions is initially the responsibility of the taxpayer, the taxpayer must keep records to substantiate and distinguish between deductible and non-deductible contributions
. These records must be kept throughout the entire contribution and withdrawal period.
The law requires taxpayers to combine all IRAs, and any withdrawal will consist of portions from the deductible and non-deductible contributions
. The nontaxable amount is based on the ratio of cumulative non-deductible contributions
to the total balance of all IRAs.