Are my earnings in my roth ira taxable?
Hi, I have a Roth IRA that's been open and funded for more than 5 years. I am over 65 and still working. If I continue to put money into the IRA, are any earnings on the account taxable if i withdraw. Simple example
$10,000 in the account now
put in $5,000 this year, making a total of $15,000.
If i make $15,000 on that investment this year, the account now has $30,000.
Let's say i need to withdraw $20,000 next year, so the original $15,000 plus $5,000 from the profits, is any of that withdrawal taxable.
Thanks-KB
Answers
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Since you are over 59 1/2 and the Roth IRA has been set up for over 5 years, the whole distribution including earnings will be considered a qualified distribution and therefore not subject to tax or penalty. This information can be found with the IRS website in section 2 for Roth IRAs:
