I know you dont get taxed on roth when you go to take it out after the age of 60 but do you get taxed on it for earned income that year when you file taxes?
Yes you do. That’s what “Roth” status is all about. It’s “after tax”. That means if you make $60K this year and put $6K into a Roth IRA, you’re taxed on all 60K, and your 6K has to come out of what’s left. But that money is never taxed again.
“Traditional” status is the opposite. If you make 60K and put 6K into a Traditional IRA, you’re only taxed as though you made $54K. The $6K goes straight in with no tax. But then when you withdraw in retirement, you’re taxed on every dollar withdrawn (principle and growth)
Ok i think maybe I explained it wrong… But you made it clear its never taxed again… i thought maybe once you received the money after 60 … they taxed it again at the end of the year for earned income…thank you again