No. of Recommendations: 1
> Explain what is taxed on a Roth if over the next 20 years
> $2000 (and more if they increase it) is put in each year.
> We wouldn't pay ANY tax on the gains OR the incme even
> upon distribution? Say we take it ALL out? no penny would
> go to the IRS?

That's the beauty of a Roth - you've already paid the tax up front, since contributions to a Roth are not tax-deductible. But when you take your distribution later, the gains are completely tax free. Keep in mind that you do have to keep your money in until you reach a minimum age (59 I believe) and also a minimum of 5 years, if I understand correctly. On the other hand, because the tax is already paid, there is no minimum required distribution at 70 1/2 like there is for a traditional IRA or 401k

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.