September 24, 2008

Roth IRAs

Question:

Do I pay tax when I invest in Roth IRAs?

Answer:

Since annual contributions to Roth IRAs are not tax deductible, the minister who invests in them uses funds available to him from income on which he first paid federal income tax. It sounds a little awkward to say that one pays tax when investing in Roth IRAs, so I prefer to explain it the way I do here.

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