Tax Guy: How to pay taxes on an IRA withdrawal — and the right way to report it to the IRS
When you take withdrawals from your traditional IRA, you probably understand they are “taxable.” But what does “taxable” really mean? Good question. Here are the answers.
Step 1: Figure out how many traditional IRAs you have
If you have several traditional IRAs, you must add them together and treat them as one account to determine the federal income tax consequences of taking withdrawals from any of them.