> I have been told that the income and gains from the assets
>> within a Roth-IRA are, like the assets themselves, not taxed
>> upon withdrawal after "5-year aging". Is this correct?
>>
>> I've also been told that the "5-year aging" of income/gains
>> only applies to the initial assets contributed to the Roth
>> when it is established, and not to subsequent assets added
>> to the Roth at a later date. Is this also correct?
>>
>> Thanks for any comments. I really need a reality check on
>> this.
> You've heard wrong. After 5 years, you may withdraw an
> amount equal to your contributions and conversions without
> tax, but the gain/growth/earnings on those amounts will be
> taxable (both income tax and the 10% excise tax) unless you
> reach age 59.5 or another exception applies.
Any gains of any nature for initially originated Roth IRA (not to be confused with conversions) are taxable for those below 59.5 are taxable, even if the Roth is held for five years after the 5 year clock begins............Is this really true? My impression is that only the 10% excise tax applies. I also understand that each conversion from a traditional has its own 5 year application. So my confusion with your response centers around the gains of any nature being subject to ordinary taxes for someone not yet 59 and a half. George Brown
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