Tuesday, October 7, 2008

Are IRA Distributions Taxable?

The answer is no! You don't have to include this on your bottom line gross income or distributions that are return of your regular contributions from your Roth IRA. You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. A qualified distributions is any payment or distribution from your Roth IRA that meets the following requirements:

1. It is made after 5-year period beginning with the first year for which a contribution was made to a Roth IRA set up your benefit and
2. The payment or distribution is...
* Made after the date you reach age 59 1/2
* Made because you are disabled
* Made to a beneficiary or to your estate after your death or
* To pay up to $10,000 of certain qualified first-time home buyer amounts.

No comments: