Determining Tax on Roth IRA Distributions

When you opened your Roth IRA account, you may have assumed all distributions would always be tax-free. This, however, is a common misunderstanding that can leave you in a world of pain come tax season because there are certain circumstances where Roth IRA distributions can be subject to income tax.

Roth IRA distributions can consist of contributions, converted funds and earnings—or any combination of the three. Understanding the differences between the types of funds you’re withdrawing, as well as how your age impacts your distribution, can help you better avoid paying taxes on your Roth distributions.

To learn more, click here to download “Determining Tax on Roth IRA Distributions in 5 Easy Steps.”

For additional information on the distribution phase of retirement, contact our office at 516-294-5287.