How are Roth distributions taxed?
Qualified distributions from a ROTH IRA incur no federal income tax. Qualified distributions from a traditional IRA are taxed as income. Earnings on distributions prior to age 59½ incur a 10% penalty tax unless due to a series of substantially equal periodic payments under section 72(t), death, disability, first-time home purchase, medical expenses above 7.5% of AGI, insurance premiums paid by the unemployed, and higher education expenses.
