Roth IRA Withdrawals Explained
By: Clay Wyatt When you play your cards right, a Roth IRA plan offers tax-free growth on your retirement investments. In order to realize the full potential of this type of plan, you must withdraw funds in accordance with IRS IRA withdrawal rules. Doing so will lead to what is called a qualified distribution. In other words, if the IRS [...]
Forgetting the 5 Year Rule Can Tax Some of Your Roth IRA Withdrawals
Converting from a traditional IRA to a Roth IRA creates an investment account that grows tax free, gives tax free Roth IRA withdrawals and hasn't any minimum IRA distribution requirements. But you have to abide by the 5 year rule; otherwise you may trigger tax consequences on your Roth IRA withdrawals. This is important especially for those pensioners who take [...]
Roth IRA Withdrawals Not Included for Medicare Part B Assessment
High income seniors on Medicare face income-based Medicare Part B premiums. The more income you have, the higher your Medicare part B premium. The good news is that Roth 401(k) or Roth IRA withdrawals are not added to the earnings for calculating Medicare B premiums. In the 2003 Medicare Act, Congress added an income-based surcharge to the Medicare Part B [...]
