The Roth IRA. What is it and how does it work Roth IRA vs. Traditional IRA Contributing to a Roth IRA Conversion from Traditional IRA Types of distributions Is the Roth IRA right for you?.
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The Roth IRA
What is it and how does it work
Roth IRA vs. Traditional IRA
Contributing to a Roth IRA
Conversion from Traditional IRA
Types of distributions
Is the Roth IRA right for you?
Varies depending on the type and purpose of the withdrawals
Withdrawals are taxed at present rate1
1This hypothetical example is not indicative of any particular investment and does not consider the tax deductibility of the Traditional IRA, which may be important for some investors. The example assumes all contributions are after-tax dollars. Investment return is assumed to be 8 percent, and the assumed federal income tax bracket is 27 percent.
1 Withdrawals may be subject to income and/or penalty taxes. This hypothetical example is not indicative of any particular investment. Investment return is assumed to be 8 percent, and the assumed federal income-tax bracket is 27 percent both before and during retirement.
Married filing a joint return
Married filing separately
Income under $95,000
Income between $95,000-$110,000
Income over $110,000
Income under $150,000
Income between $150,000-$160,000
Income over $160,000
Contribution of less than $3,000
No contribution allowed
Income of zero (0)
Income between 0-$10,000
Income over $10,000
Taxes paid out of IRA Funds
Taxes paid out of other funds
10 percent early withdrawal penalty
Tax paid out of other funds
No early withdrawal penalty
1. Annual contributions (non-conversion).
2. Previously taxed portion of your first conversion Roth IRA.
3. Not previously taxed portion of your first conversion Roth IRA.
4. The rest of your conversion IRAs, in order, with the previously taxed portion distributed first.
5. Any earnings on your accounts.
Remaining Traditional IRA balance $60,000
Roth IRA $40,000
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