Correct, I need to report the $25K as this year's
Post# of 72440
(Total Views: 274)
Posted On: 03/25/2017 2:51:59 AM
Correct, I need to report the $25K as this year's income. But I don't need to pay taxes on any profits made in CTIX and I can withdraw the $25K at any time.
Let's say CTIX is sold for $100 per share,
Roth: pay tax on $25K, no tax on $2.5M
Traditional: no tax on $25K, pay tax on $2.5M
Here are the withdrawal rules:
Roth: Contributions can be withdrawn at any time, tax-free and penalty free. After five years and age 59 ½, all withdrawals are tax-free, too. No withdrawals required during account holder’s lifetime; beneficiaries can stretch distributions over many years.
Traditional: Withdrawals are penalty free beginning at age 59 ½. Distributions must begin at age 70 1/2 ; beneficiaries pay taxes on inherited IRAs.
http://www.rothira.com/traditional-ira-vs-roth-ira
Let's say CTIX is sold for $100 per share,
Roth: pay tax on $25K, no tax on $2.5M
Traditional: no tax on $25K, pay tax on $2.5M
Here are the withdrawal rules:
Roth: Contributions can be withdrawn at any time, tax-free and penalty free. After five years and age 59 ½, all withdrawals are tax-free, too. No withdrawals required during account holder’s lifetime; beneficiaries can stretch distributions over many years.
Traditional: Withdrawals are penalty free beginning at age 59 ½. Distributions must begin at age 70 1/2 ; beneficiaries pay taxes on inherited IRAs.
http://www.rothira.com/traditional-ira-vs-roth-ira
Quote:
You have to pay taxes to enroll to Roth right?
(3)
(0)Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
Scroll down for more posts ▼