Are retirement account distributions taxable?

Distributions may be taxable based on account type and timing. Roth IRAs may be tax-free if conditions are met.

Retirement account distributions may be taxable depending on the type of account and your circumstances. Distributions from a Traditional IRA are typically taxed as ordinary income. However, Roth IRA distributions are tax-free if the account has been open for at least five years and you are over age 59½ or meet specific other criteria. Early withdrawals from any retirement account may also incur additional penalties.

Please note that Carbon Collective is not a certified tax advisor; while we strive to offer valuable information, it's important to consult with a tax professional for personalized advice tailored to your individual circumstances.