Are Roth IRA withdrawals tax deductible?

Otherwise, you'll face a fairly steep 10% penalty, plus income tax, on what you withdraw (though there are some exceptions). Qualified Roth IRA withdrawals in retirement (meaning you followed the withdrawal rules) are not subject to income tax.

Are Roth IRA contributions taxable?

That means you don't report Roth IRA contributions on your tax return, and you can't deduct them from your taxable income. Instead, you pay taxes on the money before you put it into the account, and your investment grows tax-free. You can then withdraw those contributions at any time tax-free.

Can I use a Roth IRA if my income is over the limits?

If your income (as measured by MAGI) is over the IRS limits, the only way you can take advantage of a Roth IRA is by converting money from an existing retirement account, such as a traditional IRA. 4 There is a cost, though.