RetireSimply's Guide to Roth IRA.
For early withdrawals that are not considered qualified distributions by the IRS, the IRS will impose a 10% tax penalty. The penalty tax is for early withdrawals of your Roth IRAearnings ONLY. There are no penalties for withdrawing your contributions.
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What is my AGI? MAGI?Read More >>
What is the early withdrawal tax (penalty)?
Generally, the IRS taxes you 10% of your earnings if you withdraw income "too soon."Read More >>
What is the rollover tax withholding?
You are penalized on amounts of your cost (tax) basis.Read More >>
What is my cost or tax basis?
Your cost or tax basis is the total amount that you've contributed to your Roth IRA.Read More >>
Do my beneficiaries have to pay any taxes?
First, the short answer to the question is 'yes.' Beneficiaries will still have to pay estate taxes. Whether your beneficiaries pay income taxes is dependent on how they treat the inherited account.Read More >>
Can I contribute to my Roth IRA if I've already filed taxes?Read More >>
What are the tax benefits?
The basic principal is that funds you invest now are tax-exempt at retirement, but Roth IRAs can help other tax issues as well.Read More >>
What do I need to report for taxes?
Roth IRAs are fairly light on paperwork, but you may have to fill out a few forms here and there.Read More >>
What is the Saver's Tax Credit?
The Savers' Tax Credit, formerly called the 'Retirement Savings Contribution Credit' is a tax-credit available to low- to middle- income earners.Read More >>
If you converted or rolled over amounts to your Roth IRAs in 2010 and did not elect to include the entire amount in income in 2010, you must include part of the amount in income in 2011.