Taxes for Withdraw of IRA

dhairston — Tue, 10 Dec 2024 05:35:40 GMT

If you take cash out of a ROTH IRA after 591/2, within 5 years of putting it in, are your taxes for that year completely recalculated? I am 60 now. So am I having to pay back the taxes I saved this year?

Re: Taxes for Withdraw of IRA

Opus 17 — Tue, 10 Dec 2024 15:50:33 GMT

For a Roth IRA, you are considered to withdraw contributions first, conversions second, and earnings last.

If you are over age 59-1/2 but the Roth was opened less than 5 years, then withdrawal of contributions and conversions is not taxed at all. Withdrawal of earnings is subject to income tax but not an additional penalty for early withdrawal.

So it depends on how much you contributed over time and how much you withdrew. You will get a 1099-R in January that you must include as income on your tax return. Turbotax will ask questions about past contributions, conversions and withdrawals, to calculate if any of that income is taxable.

topic Taxes for Withdraw of IRA in Retirement tax questions

Taxes for Withdraw of IRA

Re: Taxes for Withdraw of IRA