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.
1 Traditional IRA aggregation rule: If you have made nondeductible contributions to your traditional IRA in the past (hopefully, recorded on IRS Form 8606), you can't pick and choose which portion of the traditional IRA money you want to convert to a Roth. Roth IRA: With a Roth, contributions are not tax-deductible, but earnings can be withdrawn income-tax-free if you're at least 59Â½ and have had the Roth at least five years.