FIRSTLY, IRA Distributions are TAXABLE E, for the most part. However, withdrawing NONDEDUCTIBLE CONTRIBUTIONS is NOT a Taxable Event because said contributions were done WITHOUT the benefit of a deduction in the first place.
SECONDLY, being of age 60 means that you will NOT be subject to the 10% ADDITIONAL TAX PENALTY ON EARLY IRA DISTRIBUTIONS. Some Exceptions do apply. Please click on the link below:
Exceptions to the 10% additional tax
THIRDLY, Roth IRA Distributions are NONTAXBLE (and penalty-free) if they are qualified. In some instances you may need to pay taxes and penalties on earnings, such as:
- Being younger than 59 1⁄2, unless an exception applies (please see above) you may be subject to taxes on gains at your ordinary income tax rate and a 10% penalty.
- If you are older than 59 1/2 years and haven't met the five-year holding requirement, your earnings will be subject to taxes but not penalties.
LASTLY, the withdrawal of money from a POST-TAX ACCOUNT, such as a Roth IRA or a Roth 401(k), WILL NOT INCREASE YOUR TAXABLE INCOME, and thus, WILL NOT APPLY TO YOUR INCOME TAX BRACKET.
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