I'm 71. ALL my retirement money is in an IRA at Vanguard. If I buy a 5 year US Treasury note using my IRA, I get interest paid to me every 6 months. Interest from a US Treasury note is generally taxable for federal purposes.
Am I forced to report that interest income on my tax return OR is that interest non taxable because it is inside my IRA?
I understand that normally, you only pay income tax on IRAs when you take a distribution. So, if I DON'T take any distributions, will I still have to report the interest on my tax return and, hence, pay taxes on it?
Am I forced to report that interest income on my tax return OR is that interest non taxable because it is inside my IRA?
I understand that normally, you only pay income tax on IRAs when you take a distribution. So, if I DON'T take any distributions, will I still have to report the interest on my tax return and, hence, pay taxes on it?