In the Video above, Scott Farnsworth, Central Florida's Tax-Free Retirement Expert answers a frequently asked question:  Do I have to report my distributions from a Roth IRA to the IRS?

"Any distribution from a retirement account is going to fall into one of three categories. One category is reportable and taxable. Distributions from a 401K or from a conventional IRA are going to be reportable and fully taxable. A distribution from a Roth IRA falls in the middle category, it is not taxable but it is reportable. It's reported to the IRS on a form 1099. The third and best category is a distribution from a TRA or a tax-free retirement account. TRA distributions are neither taxable nor reportable, that means the IRS never sees them. If privacy is important to you, you might want to consider using a TRA as your primary retirement tool."


To see more videos by Scott Farnsworth, see our Frequently Asked Questions Videos page, Tax-Free News page, or our YouTube channel.  

Do I have to report my distributions from a Roth IRA to the IRS?