spockally
Hi! to everyone! I am new to this site and need somebody's help, please.
I am thinking about investing in ROTH IRA. If I contributed soem money to ROTH, do I need to pay tax when I file income tax the following year? My understanding about the difference between ROTH and Tradional IRA is that you pay tax now with ROTH and later with Traditional and also Tradional is tax deductible but not with ROTH. If anyone invested in ROTH, how did you report to IRS or did you pay tax? If you did, how and where on form 1040? I could not find anywhere in 1040 booklet to explain this. Mutual fund company just told me that ROTH is after tax money because it is not tax deductible and I still do not understand if I need to do something when it comes to filing tax. I am sorry to ask such a silly question but I really appreciate your help. Thank you !!!!
I am thinking about investing in ROTH IRA. If I contributed soem money to ROTH, do I need to pay tax when I file income tax the following year? My understanding about the difference between ROTH and Tradional IRA is that you pay tax now with ROTH and later with Traditional and also Tradional is tax deductible but not with ROTH. If anyone invested in ROTH, how did you report to IRS or did you pay tax? If you did, how and where on form 1040? I could not find anywhere in 1040 booklet to explain this. Mutual fund company just told me that ROTH is after tax money because it is not tax deductible and I still do not understand if I need to do something when it comes to filing tax. I am sorry to ask such a silly question but I really appreciate your help. Thank you !!!!