https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg 0 0 Fred Payne https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg Fred Payne2017-07-01 11:17:482017-07-24 13:09:20Do I pay taxes on distributions?
- Generally, yes. Taxes will be at ordinary income tax rates.
- You cannot deduct losses from your IRA investments, nor utilize capital gain tax treatment.
- You never pay taxes on Roth contributions.
- Earnings on Roth contributions are exempt from taxation if the distribution is qualified: To be a “qualified distribution”, you must meet BOTH of the following conditions:
- You are age 59 ½ or older.
- You have had the Roth IRA account for at least 5 years.
- Non-deductible IRA contributions are not subject to taxation.
- Unlike a Roth contribution, when taking a distribution, only a portion of your distribution will be considered a return of non-deductible IRA contributions.