Question

Tiffany has contributed to a roth ira for a long time. she is now in her late sixties and has just retired. she plans to withdraw $3,000 this year from her roth ira. if she is in the 25 percent tax bracket, how much tax will she have to pay on her withdrawal? test

Answer 1

If Tiffany has been contributing to her Roth IRA for a long time, she has payed taxes as the money was deposited. Regardless of her tax bracket, the money has been allowed to accrue tax-free and she will pay no taxes on withdrawal after retirement.