ROTH IRA OR ROTH ACCOUNT (401(k), 403(b), OR 457(b)
01.Core Concepts
GOVERNMENTAL) Characteristics • Contributions are taxable (funded with after-tax dollars). • Distributions are tax free if distribution is qualified. • Distributions that are not qualified are taxable on a pro rata basis (Roth account; Roth IRA follows specified distribution order). Requirements • Account in existence for 5 years. • Distribution after age 59½, death or disability (also first-time home purchase up to $10,000 for Roth IRAs only).