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Retirement tax questions
Yes, it is true that Roth distributions are generally tax free, they do sometimes affect your taxes.
If you take money out before you are 59-1/2 years old, you have to show that the distribution is a qualified Roth distribution, and therefore tax free with no penalty.
Contributions to Roth accounts are limited, so year end values are a way of the IRS monitoring excess contributions.
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March 9, 2020
10:49 AM