I was under the impression that withdrawals from the principal of an IRA were not taxable, only a withdrawal from interest earnings would be, and would also be subject to a 10% tax. However, when I look at the instructions for Form 8606 (referred to by the IRS letter), I don't see any verbiage that really supports this. Am I misinformed?
It doesn't make any sense to me why I would have to pay additional tax on money that I've already paid income tax on, prior to putting it in the IRA...
Submitted September 27, 2017 at 11:05PM by Dozer11 http://ift.tt/2yaePcV
