2007-02-07 11:32:30 · 4 answers · asked by Craig g 1 in Business & Finance ➔ Investing
Taxes are taken out as opposed to the Traditional IRA that you pay taxes at the end. If you don't have an IRA -- a Roth would be very beneficial.
2007-02-07 11:40:23 · answer #1 · answered by JusMe 5 · 0⤊ 0⤋
If you need money before 59 1/2 (normal minimum age to take out from an IRA), you can take out your already taxed contributions at any time (after 5 years?) for any reason with no tax (as it was taxed before you put it in) and no penalty. Just don't take out any "earnings/capital gains".
2007-02-07 20:48:20 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
TAX-FREE INCOME..... you won't realize the importance of those three words until you've paid taxes on every stinkin' dime that passed through your hands for 35 or 40 years.....more and more people are learning to " live off the government" ..at least your ROTH income won't be feeding them ribs while your buying bologna!!
2007-02-08 02:16:22 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
the money you put in is already taxed. so when you take the money out at retirement, all the money (INCLUDING THE INTEREST) is tax free!!!
2007-02-07 19:42:19 · answer #4 · answered by johnec4 3 · 0⤊ 0⤋