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Is the 2008 interest earned on a Traditional IRA counted as interest income on your 2008 income tax submittal?
Wiki User
∙ 14y ago
No. All taxes on interest, dividends, and capital gains in a traditional IRA are deferred. No taxes are due until you withdraw from a traditional IRA, when it is counted as ordinary income (not income which is distinguished by whether it is from interest, dividends, or capital gains), which is taxed based on your adjusted gross income in the year they are withdrawn. If you withdraw before age 59.5, you owe an additional 10% penalty.
Contributions to a Traditional IRA made either in 2008 or on or before April 15, 2009, are deductible from your 2008 taxable income. However, there are limits to these contributions which depend on a host of factors. You cannot contribute more than $5000 total ($6000 if you are age 50 on December 31, 2008) to both a Traditional and Roth IRA. If you make over $105,000/year ($159,000 if married filing jointly), your ability to contribute to a Roth IRA is reduced or eliminated. However, no restriction based on income exists for a Traditional IRA. You can always contribute $5000 (or $6000 if age 50) to a Traditional IRA.
Wiki User
∙ 14y ago
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Does one have to pay taxes in the interest earned on after tax contribution to a traditional IRA account?
Earnings within an IRA are not taxable in the year earned. A traditional IRA contributions are possibly tax deductible in the year made and are tax deferred until they are taken out of the IRA.
Is interest income reportable?
Earned interest is reported as income.
When are income taxes applied to the interest earned by business-owned annuities?
When are income taxes applied to the interest earned by business owned annuities
What is the journal entry for interest earned on a checking account?
Debit cash / bankCredit interest income
What is the tax paid on interest earned called?
wages or intrest
Is interest income included in earnings if at age 62 you are drawing social security?
No. Only earned income is counted against your Social Security.
Does one have to pay taxes in the interest earned on after tax contribution to a traditional IRA account?
Earnings within an IRA are not taxable in the year earned. A traditional IRA contributions are possibly tax deductible in the year made and are tax deferred until they are taken out of the IRA.
What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
Interest earned on interest is known as?
Compound Interest
Compound interest is interest paid on interest previously earned?
yes
How is interest different from compound interest?
Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.
How much interest is earned on the account?
A $5000 investment at an annual simple interest rate of 4.4% earned as much interest after one year as another investment in an account that earned 5.5% annual simple interest. How much was invested at 5.5%?
Type of interest is calculated by adding the interest earned to the principle?
Compound interest
A company's fixed interest expense is 8000 its income before interest expense and income taxes is 32000 Its net income is 9600 The company's times interest earned ratio is?
Formula for times interest earned = earning before interest and tax / interest expense Times interest earned = 32000 / 8000 = 4 times
Is interest income reportable?
Earned interest is reported as income.
What is the value of compound interest?
Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.
What is not a considered a debit?
direct deposit
