tax bleg

[gusl]

I think I haven't been claiming my 401(k) contributions for the past several years. Every year, my employer sends me a W2 and my bank sends me a 1099, but my IRAs never send me anything. Am I supposed to keep track of my yearly contributions by myself? How many years can I put this off, before I can claim them all at once?

Comments

[xuande.livejournal.com]

I'm no tax professional, but I was under the impression IRAs that aren't Roth IRAs are tax-deferred, so you don't pay any taxes on dividends until you start withdrawing, at which point the whole withdrawal counts as taxable income.

[bhudson.livejournal.com]

That's a traditional IRA; Roth IRAs you pay the tax up-front and no tax upon withdrawal. 401(k) is for all practical purposes a traditional IRA.

In all cases, you pay taxes either as the money goes in or as the money comes out, but not while the money sits in the account.