RIRA Contributions Withdraw
I have been making monthly contributions to my RIRA for [b]over[/b] five years now. What is the rule on withdrawing ROTH IRA contributions prior to age 59 1/2?
Does each contribution have to wait the full five years from the date it was deposited into my ROTH or is it only the account that requires the five year rule?
Thank you for reply.
K
Permalink Submitted by Alan Spross on Mon, 2012-07-09 20:02
There is no waiting period for withdrawing amounts up to your regular contributions total. These come out tax and penalty free.
Once all your regular contributions have been withdrawn, conversions come out next. There is a 5 year holding period for each conversion to avoid the 10% penalty (up to age 59.5).
Earnings come out last subject to tax and penalty.
Once 5 years have passed from the year of your first Roth IRA contributions AND you reach 59.5, the entire Roth is qualified and therefore tax and penalty free.
Permalink Submitted by Kirk Halveland on Mon, 2012-07-09 20:29
Thank Alan!