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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (19811)	5/1/2008 11:07:37 AM
From: manalagi	Read Replies (2) \| Respond to of 149317

If you put $100 in aftertax money into a Roth, then only the earnings on that $100 is subject to tax. You are partially correct, i.e. if you withdraw before 59 1/2. After 59 1/2 all your Roth IRA (Roth 401K or Regular Roth IRA) withdrawal is tax free. That's the beauty of Roth IRA. There is a negative though: If you are a very high earnings when you contribute to Roth IRA, you are paying taxes on the portion of the money set aside for Roth IRA, and iyou reach 59 1/2 a couple years later and you income is practically zero when you withdraw, you might consider regular IRA instead. Tax issue is very complex and as which IRA you choose differs for each person.