UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: FelineAvenger Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75859  
Subject: Re: Capital Gain? Date: 5/21/2001 12:52 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
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

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Value Hounds

Mobileye's Growth too Hot?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.