Nontaxable IRA distribution calculation exercise Tommy, age 60, has two traditional IRAs, one at National Bank and the other at State Bank. He has made $3,000 of contributions (all were deductible) to the National Bank IRA and $5,000 (none were deductible) to the State Bank IRA. During the tax year, he took a $4,000 distribution from the State Bank IRA. As of December 31, the FMV of the National Bank IRA was $9,000 and the FMV of the State Bank IRA was $3,000 (after reduction by his $4,000 distribution). What is the nontaxable portion of Tommy's distribution? Total nondeductible contributions IRA account balance at year end + Amount distributed during year + Outstanding rollover a X IRA Distributions Nontaxable portion of IRA distributions Note: a Outstanding rollover means any amounts distributed before year end but rolled into another IRA in the following year under the 60-day rollover rule