Safe Retirement Income

Your Retirement Depends on It

Tim Barton, Chartered Financial Consultant

Pepin Wisconsin
715-220-4866

October 18, 2012 by Tim Barton Leave a Comment

Why Are Taxes Due On A Roth After Age 59 ½ ?

This is a common question.  Many believe there are no income taxes due on Roth withdrawals after reaching that magic age of 59 ½.   However there are conditions on nontaxable withdrawals.  The IRS has rules that define a withdrawal as qualified distributions. Qualified distributions from a Roth IRA are received free of income tax and are not subject to the 10% premature withdrawal penalty tax.

Roth IRA distributions that do not meet the qualified distribution requirements will be included in income to the extent that the distribution represents earnings on Roth IRA contributions and may be subject to a 10% premature withdrawal penalty tax. 

Qualified distributions from a Roth IRA are not included in gross income and are not subject to the additional 10% penalty tax for premature distributions.

To be a tax-free qualified distribution:

  • The distribution must occur more than five years after the individual first contributed to the Roth IRA;  and
  • The individual must be at least 59-1/2 years old, disabled, deceased or the funds must be used to purchase a first home ($10,000 lifetime limit). 

There is no requirement that distributions from a Roth IRA begin by age 70-1/2.

Unlike regular IRAs, contributions to a Roth IRA can be made after age 70-1/2.

For help you may ask questions in the comments or contact me privately here: Tim Barton Chartered Financial Consultant

 

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Filed Under: Money Saving, News, Retirement Planning Tagged With: business, finance, Money, Retirement, retirement income, Tim Barton

About Tim Barton

Growing up during the 60s and 70s Tim saw the real-life effects of sure thing stock investments gone sour. It seemed all the adults around him who did not keep their money in safe investments like insurance, banks and government bonds lost most of it. While they were young, they felt invincible, but as age crept up, their conversations turned to the gloomy reality of lost retirement funds.
In 1976 all those memories started Tim along his career path dedicated to helping people avoid the pain of losing their hard earned dollars. Tim decided to enter the retirement planning business vowing never to cause anyone to lose money. He has kept that promise by focusing on insurance based planning.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Recent Posts

  • FOUR WAYS TO FUND A BUY-SELL PLAN
  • HEALTH SAVINGS ACCOUNTS
  • What is a Charitable Gift
  • FIXING THE VALUE OF YOUR BUSINESS FOR ESTATE TAX PURPOSES
  • THE OLD PERSON WHO WILL BE ME

Copyright © 2025 · Generate Pro Theme on Genesis Framework · WordPress · Log in