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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3281
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Do they tax your tsp if i take out 2000,00 month, roth ira that i start on my own i would

Customer Question

do they tax your tsp if i take out 2000,00 month, roth ira that i start on my own i would like to move to hawaii
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
Whether or not your withdrawal from a Roth IRA is taxed depends on a few requirements. First, the funds must have been in your Roth IRA for at least five years before they can be withdrawn. Additional requirements include:
When the withdrawal is made
Whether the withdrawal is from your contributions alone or if it will include earnings
What purpose the withdrawal is made for.
Withdrawals made AFTER age 59 and 1/2 are normal retirement withdrawals and are not taxed. You paid tax on that income when you first contributed to the Roth IRA.
If the withdrawal is made BEFORE age 59 and 1/2 and is only up to the amount that has been contributed to the Roth IRA then no income tax is charged. Withdrawals of contributions are tax-free.
If the withdrawal was made before age 59 and 1/2 and includes amounts above what you contributed (your investment earnings) then you may have to pay tax on the earnings portion of the withdrawal. There are certain situations where the IRS will allow you to withdraw without penalty. Funds can be withdrawn for higher education expenses or to buy a home. Certain hardship circumstances such as permanent disability also allow funds to be withdrawn tax and penalty free.
Please let me know if you require further information or clarification.
Thank you and best regards,
Barb
Expert:  Barbara replied 1 year ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me.Best regards,Barb