Suppose you put 4000 in Roth IRA this year. Let's say it grew to 20000 when your reach 59.5 years.
We withdraw the entire amount. So my question is if the 16000 you made in the roth IRA taxable? Or is the whole 20000 free from taxes.
Some helpful links with answers would be greatly appreciated.
2007-11-06 05:09:16 · 4 answers · asked by Eddie T 2 in Business & Finance ➔ Personal Finance
You can put $4,000 per year,then add $1,000 if you are over 50.With Roth IRAs you pay taxes now and then when you decide to withdraw it is tax-free.There also isn't a mandatory cut-off age for withdrawals as with a traditional IRA.
2007-11-06 12:52:33 · answer #1 · answered by AB 4 · 0⤊ 0⤋
You pay taxes up front on what you put in, but withdrawals, whether of what you put in or of gain, are tax-free. That's the beauty of a Roth.
2007-11-06 05:25:56 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
NO. Your roth contributions are taxed and there is no tax on anything when you take it out.
http://www.google.com/search?hl=en&q=roth+IRA+rules
is the only site I'm going to give you. I'm sure you could have done a google search yourself.
2007-11-06 05:25:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The whole thing is free from taxes
Roths- better when you are young and have lots of time to grow the gains
Traditional- better as you get older and get the tax benefit immediately.
2007-11-06 05:14:23 · answer #4 · answered by Joseph T 4 · 2⤊ 0⤋