2007-01-24 13:49:22 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The Earnings are tax free, as long as you don't withdraw them until you are 59 1/2 years old.
2007-01-24 13:56:52 · answer #1 · answered by miketorse 5 · 0⤊ 0⤋
Not exactly. You pay your taxes up front but then as your Roth account starts building and gains even interest you do not owe any more taxes on that interest or gains when you remove after the 5 year waiting period. You can also remove money before the 5 year waiting period without paying taxes IF you only take out the amount You put in not the earned amounts.
It is an outstanding investment tool - one to definitely to get into as soon as possible.
2007-01-25 01:14:53 · answer #2 · answered by Brick 5 · 0⤊ 0⤋
You pay the taxes up front like you normally do each payday. You don't pay taxes on the money you put in Roth IRA or interest earned after that if you leave the money in as long as you are supposed to.
It is a very good deal.
2007-01-24 22:00:21 · answer #3 · answered by ? 5 · 1⤊ 0⤋
You paid income taxes on the money before you put it in. When you take the money out, you do not pay additional taxes on any amount in that account.
2007-01-24 21:57:28 · answer #4 · answered by Peaches 4 · 1⤊ 0⤋