You do not have to pay taxes on withdrawals you make from a Roth IRA if you are at least 59½ and your first contribution to the account was more than 5 years ago. Keep in mind that there is a 10% tax penalty if you make a withdrawal from a Roth IRA when you’re younger than 59½, as well as a 20% tax withholding if you make a lump sum withdrawal in cash (This is not an extra tax but goes to cover tax owed. You will get a refund if the 20% is greater than what you owe just like any withholding).

You do, however, indirectly pay tax on contributions you make to your Roth IRA. These contributions are made with after-tax dollars, which means that they are made from your paycheck or another source after your taxes have already been paid or withheld at the time you acquired the funds.

Different types of retirement accounts can impact your tax situation in different ways. Talk taxes with a pro who can help you maximize the tax benefits of your retirement account. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 28, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.