The Five-Year Rule for Roth Retirement Accounts

A Roth retirement account is funded with after tax money. It's pre-taxed, and how that comes to play later on in life is in two ways. If you're 65 years of age or older, now you're on Medicare. The money that you take out from a traditional retirement account will probably increase your Medicare B premiums. Possibly, the income that you takeout from atraditional retirement account will make it so that your social security becomes taxable. And last but not least, if you die, when any money that you leave to your beneficiaries in a traditional retirement accounts, when they take it out then they will pay ordinary income tax on it.