An IRA withdrawal is income for the year it is received by you.
What savings? A Roth IRA is funded with money that was not tax deductible, that's why most Roth IRA withdrawals are tax free.
As I already answered, when you withdraw from a Roth IRA, you withdraw your contributions first, your conversions second (if any) and your earnings last. Withdrawal of contributions is always tax free. Withdrawl of conversions is tax free if you are over age 59-1/2. Withdrawal of earnings is tax free if you are over age 59-1/2 AND it has been at least 5 years since you opened your first Roth IRA. If it is less than 5 years, the earnings are added to your income and taxed as regular income.
