Dec 5

I rolled over a rollover IRA into a Roth, which is now called a Roth IRA. When filing tax return, I had to pay Federal taxes on the whole amount that was rolled over. When I withdraw from my Roth IRA in the future, do I deduct Federal & State taxes from the amount that I am withdrawing, & if so, what percentage do I use. Will I get taxed on the amount of money that I withdraw, when I file next year’s taxes?

one comment so far...

  • singlegal Said on December 5th, 2009 at 5:59 pm:

    The year in which you transfer/roll the IRA into a Roth IRA is the year you pay state and federal taxes. Once the $ is in the Roth you never pay state or federal taxes on that money again no matter how much it grows………….. hmmmm…. unless the govt. changes the rules down the road…. but for now…. No. You don’t pay again no matter how much the money “grows.”

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