It's reported on line 38 of IRS Form 1040. Under federal law, you pay a lower tax rate on your first dollar of income than on your last dollar. The worksheet considers cost basis in calculating your tax liability. In considering the age at which you expect to withdraw your IRA money , you should note the withdrawal rules on Roth IRAs. This table shows the tax liabilities on a Roth IRA under various withdrawal scenarios.
Withdrawals are tax-free.
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