2007-02-02 07:37:06 · 5 answers · asked by Your Teeth or Mine? 5 in Business & Finance ➔ Taxes ➔ United States
No. The beauty of a Roth is that, while you pay taxes on the money you put in, you do not pay taxes on the income/growth. It can be a much more lucrative way for some people to save for retirement than a regular IRA.
2007-02-02 07:40:17 · answer #1 · answered by J.R. 6 · 0⤊ 0⤋
No. At least, not now.
Contributions to a Roth IRA are made with money that has already been taxed. Congress decided that taxing the earnings on that money would be unfair (and politically unwise), so they set this program up so that any dividends earned by that money is yours, taxfree.
That doesn't mean that they can't change their minds at some point, and start taxing it. They're a slippery bunch...
2007-02-02 07:42:58 · answer #2 · answered by Ralfcoder 7 · 0⤊ 0⤋
Income earned in a ROTH is not taxable. The only time you might have tax in a ROTH is if you withdrawal the money early.
2007-02-02 07:40:06 · answer #3 · answered by Homeslice 4 · 1⤊ 0⤋
No...Roth IRA's grow tax free.
See Roth IRA FAQ's on the IRS website below.
2007-02-02 07:40:46 · answer #4 · answered by CPA 2 · 0⤊ 0⤋
you dont pay taxes when you liquify a roth ira. you do pay taxes on the amount you put in when you opened your roth. you dont pay taxes on dividents on any ira, unless your drawing money
out little by little. any amount you draw out is taxable.
2007-02-02 07:44:34 · answer #5 · answered by chris 2 · 0⤊ 0⤋