Pulling money out of a Roth
What happens if an individual younger than 59 1/2 puts money into a Roth IRA and decides the next day to pull it back out. Would this be penalty and tax free regardless of the reason they pulled money out?
What happens if an individual younger than 59 1/2 puts money into a Roth IRA and decides the next day to pull it back out. Would this be penalty and tax free regardless of the reason they pulled money out?
Permalink Submitted by Alan - IRA critic on Tue, 2014-03-18 22:53
As long as it was a regular contribution the distribution would be tax and penalty free. But if it was a taxable conversion, the distribution would be subject to the 10% penalty until the conversion had been held 5 years OR individual reached 59.5 in the mean time.