Wait a second, though. You've already paid tax on your Roth principal. The entire point of the Roth is that it's an after-tax contribution but when you draw down against it it's tax free. It's like the inverse of a 401K or 403b.
Does anyone know if there are in fact any tax implications for drawing early against a Roth?
With a Roth IRA, contributions are not tax deductible, but earnings accumulate tax free. ... Five years after you establish your Roth IRA, you can take tax-free, penalty-free distributions if you are at least 59½ or will use the fund for first-time home buyer expenses.
Your Roth IRA is exclusively for you. Your interest in the account is nonforfeitable. You can't borrow from your Roth IRA. If you use your Roth IRA as collateral for a loan, the part you pledge as collateral will be taxed as a withdrawal.
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If you are saving for a first-time home purchase or retirement at age 59½, and these events are at least five years away, the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.
Yes, that is correct. Plus state income tax, etc.I am not 59 or using it for medical bills or a house or the other things they list so i assume i have to pay he tax on ONLY my gains?....so if i am in whatever tax bracket....lets say 25 percent.....does that mean literally i pay 25 percent tax on it?.....i know thats probably a stupid question but......
Correct. If you overpaid $1k, then owed $1k for the withdrawl, it would balance out to 0.My other thought is.....lets say I didn't tpake any money out and aim supposed to get back a thousand dollars on my taxes......lets say with my Ira i wind up having to pay a thousand in tax.....does that mean i am at 0 and don't have to pay anything ?.....Ryan
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