But nothing has changed in the rules for Roth IRA distributions. Unless payouts of accumulated Roth account earnings meet the definition of “qualified distributions,” they are subject to tax.
Strategy: Minimize the tax burden when you withdraw from a Roth. Despite the common perception, the tax owed on distributions may be less than you think. In fact, some distributions are tax-free!
The exact tax treatment depends on the “ordering rules” for Roth IRA distributions.
Here’s the whole story: Unlike traditional IRAs, participants in a Roth IRA aren’t required to take required minimum distributions (RMDs) after reaching age 70½. But they can ...(register to read more)