1. Roth IRA distributions
Yeah, opting for a Roth IRA is not always tax-free, but it is when you need it most: during your golden years. Plus, the taxes owed on Roth IRA contributions are being paid for the tax year in which you actually earned that money, not when you make the withdrawal.
If you finally decide to put your money in a Roth IRA, the amount of money will grow tax-free until you think you’re ready to take a distribution. However, there are some IRS rules you’ll have to follow in order to avoid paying taxes or penalties.
#1. The account has to be at least five years old.
#2. You must have 59 1/2 years or more.
Unlike traditional IRAs, Roth IRA accounts don’t require you to take minimum distributions.
