Are withdrawals from a Roth IRA taxable?
A44: Qualified distributions from a Roth IRA are not subject to federal or Hawaii income taxes. Qualified distributions are distributions made after the five-year tax period beginning with the first tax year for which the taxpayer (or the taxpayer’s spouse) made a contribution to a Roth IRA established for the taxpayer and that are made (1) on or after the taxpayer reaches 59-1/2 years of age; (2) at or after the taxpayer’s death; (3) on account of the taxpayer’s disability; or (4) for a qualified first-time home purchase. Nonqualified distributions from a Roth IRA are not taxable for federal and Hawaii income tax purposes to the extent such distribution, when added to all previous distributions from the Roth IRA, does not exceed the aggregate contributions to the Roth IRA (i.e., nonqualified distributions of earnings from a Roth IRA are subject to federal and Hawaii income tax).
