Across a side street called Kent Avenue, the next house at 234 South Main Street displays yet another style of architecture, the Connecticut Valley's early version of the Georgian. This is the Dr. Alexander King House, of 1764, and now a museum and the home of the Suffield Historical Society.
Roth IRA contributions are not taxed at the time you contribute the funds to your Roth IRA. However, your contributions come from post-tax income. You pay taxes on your income today, but not in the future.ou paid tax on that income when you first contributed to the Roth IRA. If the withdrawal is made before age 59 and 1/2 and is only up to the amount that has been contributed to the Roth IRA then no income tax is charged. Withdrawals of contributions are tax-free.
It determines whether you get to contribute to a Roth, what tax exemptions you can take advantage of, what your tax rate is, and dozens of other tax issues (health care subsidies, anyone?). Your tax planning needs to concentrate on lowering your adjusted gross income, not just on deductions. Your adjusted gross income is hard to lower if you are a simple W2 employee. The personal and other tax exemptions you can take advantage of are one of the few adjusted gross income tools you have available.