Purchasing an Annuity with Roth IRA
Are there ever any taxes due (Federal or New Jersey State) on a Roth Immediate Annuity with a lifetime payout? I am 71 years old and my Roth IRA was started in 1998 and my latest Roth IRA contribution and conversion was done in 2015.
Permalink Submitted by Alan - IRA critic on Wed, 2020-12-09 22:36
Your Roth IRA is fully qualified, which means that any distributions you take will be tax free for federal taxes. As an added surprise, NJ actually conforms to the federal rules on qualified Roth distributions so your qualified Roth distributions are also tax free in NJ.