TaxGuyBill
Level 15
07-26-2023
12:46 PM
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@Tax Explorer wrote:
Later on, when you take distributions, a portion of the money you get back will not be subject to income tax."
"A portion of the money". The original contribution will effectively be tax-free, but any earnings will be taxable. Contrast that with a qualified Roth distribution (such as after retirement) that would be completely tax-free.