I am making after-tax contributions to an IRA. Will I get taxed again when I withdraw it (when eligible)?

No. Withdrawals of your after-tax contributions to your IRAs should not be taxed. However, the only way to make sure this does not happen is to file IRS Form 8606. Form 8606 must be filed for every year you make after-tax (non-deductible) contributions to your Traditional IRA and for every subsequent year until you have used up all of your after-tax balance.

(To read more about IRA contributions, read Retirement Plan Tax Forms You May Need to File – Part 1 and Part 2, and An Overview of After-Tax Balance Rules.)

This question was answered by Denise Appleby
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