Distributions From a ROTH IRA
It is my understanding you can withdraw direct contributions to a ROTH IRA at any time without penalty or tax. If you move a ROTH IRA from one custodian to another, does the amount of your direct contributions carry over. For example, if you made a contribution at Custodian #1 and then moved the funds to Custodian #2 can you withdraw the amount of the contribution at any time without taxes or penalty? Does it affect the answer if when you moved the funds from one custodian to another it was by trustee-to-trustee transfer or by rollover?
Permalink Submitted by Alan - IRA critic on Mon, 2017-03-27 16:36
Changing custodians does not affect taxes on distributions. You need to keep track of your total Roth IRA basis in regular and conversion contributions for all your Roth IRAs in total, the custodian does not. As long as the amount of regular contributions you show on line 22 of Form 8606 is at least equal to the distribution you took, the distribution will not be subject to tax or penalty.