Iwould like a tax person to answer this if at all possible. If you take any money out of a roth IRA do you get penalized at that time? or at income tax time. Thanks to all that answer.
Posted: 5/28/2010 12:43:14 PM EDT
[#1]
I believe you can take out what you have put in at any time without any penalty.
Posted: 5/28/2010 12:45:05 PM EDT
[#2]
I thought that was the benefit of a Roth. No tax penalty.
Posted: 5/28/2010 12:47:41 PM EDT
[#3]
You can withdraw early but only for certain things.
college and buy a house are two that I can think of right off the bat.
But there is a penalty for early withdrawl outside of the parameters due to the non-taxing of dividends.
Posted: 5/28/2010 12:49:34 PM EDT
[#4]
After a 5 year seasoning period, you can take out the principal without penalty.
It makes the Roth really attractive for people looking to retire early.
Posted: 5/28/2010 12:52:32 PM EDT
[#5]
For early withdrawal of a Roth IRA, you lose 10% of your contributions, and have to pay income tax on your earnings.
