Post date: Jun 12, 2014 3:11:8 PM
What You Should Be Aware of in Drawing Down your IRA. 403b
The Commonwealth of MA began allowing Tax Sheltered Annuities (TSA's), 403b's etc, to be taken out on a pretax basis in January of 1998. Up until that time you paid state taxes on your contirbution to the fund. Make sure you take out the part that you already paid taxes on first and then the rest, including interest which will be taxed. You will have to file two W-4's with your financial institution--- one telling them to take federal tax out-- the other telling them not to take state tax out. When you have exhausted your contribution amount--- submit a new W-4 telling them to start taking state tax out. Contact me at mardito@retireesunited.org if need further clarification.