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Author: rhecker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Roth IRA Date: 7/14/2000 8:24 AM
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I was reading about "what to put in an IRA" and got a bit confused. I have a roth IRA and as I understand it nothing in there is taxable is that right?

Yes, you are correct. The money you put in a Roth IRA has already been affected by income tax, so when you eventually make witdraws in retirement it is not taxed again. With a traditional IRA, you put money into it before income taxes are taken out. So when you eventually withdraw money from a traditional IRA, those untaxed contributions are now subject to the income tax which it had avoided earlier.
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