Q:

When are taxes on IRA withdrawals due?

A:

Quick Answer

Federal income taxes on withdrawals from traditional Individual Retirement Accounts are due at the same time as regular income taxes, and taxpayers must include the withdrawn amounts on their annual tax returns, according to the Internal Revenue Service. Qualified distributions from Roth IRAs are not taxable.

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Full Answer

The IRS requires investment firms to withhold 10 percent of withdrawal amounts for federal income taxes unless the account owners decline the withholding, notes Fidelity. Taxpayers who are concerned about owing a large tax bill at the end of the year can increase their withholdings when they take the withdrawals. State laws determine whether the firms must withhold money for state taxes.

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