JulieS
Expert Alumni

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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