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As I understand it, after 59.5 years, any Roth IRA withdrawals incur no tax, provided the account is at least 5 years old. Therefore, if my only income after that age were from Roth IRA withdrawals, I would pay no income tax.

After that age, if I had additional income that was taxable, could the rate at which the additional income is taxed be affected by the amount I withdraw from the more-than-five-year-old Roth IRA that year?

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  • Considering that the first 10+k of income are tax free, and also considering that you paid taxes when you put the money into the Roth, it follows that it is a good idea to not have all your money in the Roth. – Aganju Jul 21 '17 at 1:03
  • I wasn't planning to. My question was whether the tax rate of the additional income would be affected by the amount of the Roth IRA withdrawal. – BaronFiner Jul 21 '17 at 1:32
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From the IRS:

You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s).

It's not just that the particular money you take from the IRA isn't taxable. It's not counted as part of your income at all, so it won't have any effect on the taxation of other income.

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The answer to your first question is true. No tax on withdrawls. Under these circumstances, the withdrawl is "qualified".

To your second question, as long as the withdrawl is qualified, it is not taxed, regardless of your additional income.

http://www.investopedia.com/articles/retirement/03/030403.asp?lgl=rira-baseline-vertical has a very comprehensive, plain English, description of the IRS rules (as of today, anyway).

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  • I meant to ask if the tax rate of the additional income would be increased by the non-taxed Roth IRA income. – BaronFiner Jul 21 '17 at 1:14

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