Though any earnings withdrawn before age 59.5 are generally considered taxable income, there is yet another loophole for earnings on Roth contributions. If you withdraw only the amount of your contributions made within the current tax year, including any earnings on those contributions, then they are treated as if they were never made. If you contribute $5,000 in the current year and those funds generate $500 in earnings, you can withdraw the full $5,500 tax-free and penalty-free as long as the distribution is taken prior to your tax filing due date.
So, if I put in $5500 in a Roth IRA account then it balloons by sheer luck to $1 million dollars, and if I withdraw all the money before my tax dude date, I can keep all $1 million tax free?
no tax on ordinary income, no tax on capital gains?
Doesn't seem right
Submitted October 18, 2017 at 12:01AM by theEthereumNoob http://ift.tt/2gjZT10
