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How do Roth IRA taxes work?

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72% Informative

A Roth IRA is a retirement savings account offered by brokerage firms, banks, credit unions, and insurance companies.

You fund the account with earned income that’s invested in the market.

It grows and compounds over time, and you can then make withdrawals to provide retirement income.

Roth IRA contributions are not tax deductible, but eligible withdrawals are tax-free.

A Roth IRA is funded with after-tax dollars, so you can contribute money you’ve already paid taxes on.

It’s possible to transfer untaxed dollars to a Roth IRA with Roth IRA conversion.

Money in a Roth IRA grows tax-free and grows tax free.

Distributions from a Roth should not put you in a higher tax bracket if they’re qualified.

VR Score

77

Informative language

79

Neutral language

56

Article tone

informal

Language

English

Language complexity

42

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

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