Roth IRA Distribution Question
My wife and I started individual Roth IRA accounts in May 1, 2013.
We’d like to be able to take distributions from these accounts in January, 2018.
I am currently older than 59.5 years old and my wife will be less than 59.5 years old (just a little older than 57) in January 2018.
Our question is: Can either or both of us take distributions from our individual Roth IRA accounts in January 2018 without any tax liabilities and/or penalties? Our plan is to use most of the money, contributions and interest, towards our first time buying a house, either as a down payment and/or closing costs.
Permalink Submitted by tomd37 on Wed, 2013-06-26 17:27
Do either of you already have any other Roth IRAs or are these the first ones for each of you? Tom D.
Permalink Submitted by Robert Hoffman on Wed, 2013-06-26 18:41
Both of these are first-time ever Roth IRA accounts, opened in May, 2013.
Permalink Submitted by Alan - IRA critic on Wed, 2013-06-26 20:30
Your own Roth will be fully qualified with all distributions tax and penalty free as of 1/1/2018. Your wife will be able to distribute all her regular contributions tax and penalty free in Jan, 2018 without the first home exception. If she qualifies for the first home exception since she would then have completed 5 years for her Roth, she can also take out up to 10,000 of earnings tax and penalty free.
Permalink Submitted by Robert Hoffman on Wed, 2013-06-26 22:56
Thank you Alan for a prompt and professional answer.