Here's how it works: Say you receive a car, RV or boat loan through a credit union with which you also have a credit card. In the fine print of the loan contract, you'll probably see that your credit card balance is secured by the auto, RV or boat.ere's how it works: Say you receive a car, RV or boat loan through a credit union with which you also have a credit card. In the fine print of the loan contract, you'll probably see that your credit card balance is secured by the auto, RV or boat.
If you've made nondeductible contributions to your traditional IRA, you have to use Form 8606 to figure the taxable and nontaxable portion. Otherwise, the entire amount is taxable. In addition, if you take a taxable non-qualified withdrawal, you'll have to figure the 10 percent additional tax with Form 5329.
Roth IRAs. Roth IRA contributions are not deductible so the distributions are tax free. You've paid tax on the income before contributing. While you still need to file Form 8606, your Roth contributions and distributions do not affect your traditional IRA basis.his is where the IRA basis comes in. You'll calculate the taxable distribution by subtracting out the IRA basis, which lowers how much tax you'll owe. The IRS supplies worksheets to calculate the taxable percentage of your distribution based on the proportion of deductible to nondeductible IRA contributions.