Health-Care Investment Income Tax
I assume that the 3.8% tax on investment income (’09 health-care act) currently set to take place next year will not apply to any gains, dividends or interest in a Roth IRA. Is this a correct assumption?
I assume that the 3.8% tax on investment income (’09 health-care act) currently set to take place next year will not apply to any gains, dividends or interest in a Roth IRA. Is this a correct assumption?
Permalink Submitted by Alan Spross on Sat, 2012-03-24 18:16
Yes, gains within any IRA would not trigger this tax.
Of course, if earnings from a Roth IRA were distributed before the Roth became qualified (all tax free), the additional AGI would count against the limit to trigger the tax.