Roth IRA Tax Benefits Explained – Roth IRA Tax Benefits Explained: Roth IRA Withdrawal Tax Rules & Rates Call Toll-Free: 1-844-612-7162

The internal revenue service provides lots of information about Roth IRA withdrawal tax rules. Their information is unusually long and quite confusing for the average person to understand.

The most commonly understood benefit of using Roth IRA’s are tied to income taxes so understanding how your Roth IRA will affect your tax return and properly understanding Roth IRA withdrawal tax rules is very important to your future.

How are Roth IRA contributions taxed? You are not taxed at the time you contribute the funds to your Roth IRA. There for your contributions are from your post tax income. You pay taxes on your income today not your income in the future.

How do Roth IRA tax breaks work? Roth IRA’s don’t receive a tax break like pre-tax retirement accounts do such as your traditional IRA or 401K.

Even though you cannot get a tax break today from your Roth IRA it still might be a great investment vehicle to minimize your taxes over a long time in the future. The longer you work and avoid retirement the greater the chance that your personal income tax rates will increase, therefore you can lock in paying a specific rate today and your tax rate is higher at the retirement then using a Roth IRA will have saved you money.

The great thing about a Roth IRA is that at any point without paying taxes or fees you can withdraw your contributions so with or without a tax break it’s still a great benefit over pretax investment vehicles like traditional IRA’s.

Are Roth IRA withdrawals taxed? It depends on a few factors whether or not when you withdraw from your Roth IRA you’ll be taxed

The most important factor is that the funds have to be in the Roth IRA for at least five years before you can withdraw them. There are other factors to include specifically when the withdrawal was made whether the withdrawal was from contributions alone or if it included earnings and what the purpose of the withdrawal was made for.

If you withdraw your money after the age of 59 1/2 you are not taxed you paid taxes already on that income when you first contributed it to your Roth IRA.

If you withdraw your money before age 59 1/2 and that include amounts above what you have originally contributed to your investment earnings then you may have to pay tax.

There are certain situations where the Internal Revenue Service will allow you to withdraw your money without penalty. Funds can be withdrawn for school expenses or for the purchase of a home.

Also certain hardship circumstances such as a disability may allow you to withdraw your funds tax and penalty free. I hope this has helped you understand Roth IRA withdrawal tax rules.

If you have a Roth IRA you should seriously consider rolling it over into gold this will protect your retirement funds regardless of a possible economic collapse. To get your free gold IRA rollover guide visit: or call: 1-844-612-7162

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