Are the contributions to a traditional IRA taxed differently than the earnings when withdrawn and/or are they both considered taxable income when withdrawn? And at what rate? Capital gain or regular income tax?
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Contributions to a traditional IRA are treated as ordinary income when they're withdrawn, as well as the earnings.
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The IRA withdrawals are not subject to FICA withholdings (Social Security or Medicare). Other than that, they are treated the same (as ordinary income).
Edited - to clarify per comment below.
answered Jan 21 '11 at 5:36
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