How Are Roth IRA Distributions Taxed? 
Distributions after age 59.5 on contracts held more than five years are received income tax free . If the distribution is to a beneficiary , it is also income tax free . Under some circumstances the value might be included in an estate tax computation . The basic idea is that the Roth is returning principal that comes from after tax dollars and is not taxable . The interest is merely not charged . 