Hi all,
I’m trying to get my accounts organized as far as their tax status is concerned, and wanted to run the question by the forum.
Are there primarily three categories of tax status and what do they mean?
Taxable = This would be my brokerage account, savings accounts.
Tax-Deferred = This would be accounts that you do not pay taxes on until you withdraw the money, as in Traditional IRA and 401k.
Non-Taxable= This would be a Roth IRA.
The one I am not positive about is the Non-Taxable account. For a Roth, does that mean that when I reach 59.5 I can withdraw from the Roth, and that money is not taxable? In that I can withdraw $12,000 / year and not report that as income?
I’m trying to get my accounts organized as far as their tax status is concerned, and wanted to run the question by the forum.
Are there primarily three categories of tax status and what do they mean?
Taxable = This would be my brokerage account, savings accounts.
Tax-Deferred = This would be accounts that you do not pay taxes on until you withdraw the money, as in Traditional IRA and 401k.
Non-Taxable= This would be a Roth IRA.
The one I am not positive about is the Non-Taxable account. For a Roth, does that mean that when I reach 59.5 I can withdraw from the Roth, and that money is not taxable? In that I can withdraw $12,000 / year and not report that as income?