How Do Roth IRA Contributions Affect Taxes?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaContributions to your Roth IRA do not have any tax consequences unless you exceed the permissible limits. Those limits are $5,500 for most people and $6,500 for those 50 and older. The premium is paid with after-tax dollars just like you would buy a cup of coffee. When the benefit is received it is free of income tax if you are then over 59.9 and the plan has been in force for five years or more.Answered on September 5, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! I love Roth IRA's , I believe that they are an excellent part of a solid retirement plan. Since you are making your annual contributions on an after-tax basis, there are no tax consequences, unless you exceed the contribution limits. The money when it is finally available to be withdrawn, is tax free, and that is what makes this such a great deal. I hope that helps, thanks for asking!Answered on September 5, 2014flag this answer
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