Withdrawaing From a Roth IRA under the CARES Act
I was wondering if it would be permissible to withdraw from a Roth IRA under the CARES Act. If this is allowed I would imagine that the “interim tax consequences” associated with a Tax Deferred IRAs could be avoided. One could re-contribute to the Roth IRA at anytime during this 3 year window. Is this an option?
Permalink Submitted by Alan - IRA critic on Wed, 2020-05-13 18:10
Yes, if you qualify for a CRD, you could take a Roth IRA distribution, and even though such distribution might be non taxable under the ordering rules, you would benefit by having 3 years to re pay the distribution. If the Roth distribution included conversions under 5 years, there would be no 10% penalty for tapping those conversions. Again, you must qualify for a CRD.