One of the benefits of the Roth IRA is that once you have reached retirement age, the withdrawals are not taxed. The entire purpose of the Roth IRA is to use after tax dollars to fund it. This means the income was already taxed when you earned it and you put after-tax dollars into the account.
That being said, if you are not at retirement age, there are some potential concerns. If you are under 59 1/2 years of age there is an early withdrawal penalty of 10% on a federal level. Beyond that your withdrawal may be taxed as regular income.
You would be best served by speaking with your accountant to see how a withdrawal may impact your unique financial situation.
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That being said, if you are not at retirement age, there are some potential concerns. If you are under 59 1/2 years of age there is an early withdrawal penalty of 10% on a federal level. Beyond that your withdrawal may be taxed as regular income.
You would be best served by speaking with your accountant to see how a withdrawal may impact your unique financial situation.