WITHDRAWAL OF ROTH IRA CONTRIBUTION
I am 57 years old and would like to make a $7000 Contribution to my ROTH IRA. I have made contributions to this account in the past. I realized that I can withdrawal the amounts that I have contributed tax and penalty free at any time. Will I be able to withdrawal earnings on the contributed amount tax and penalty free when I reach 59 1/2?
Thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2021-03-01 14:31
Your Roth earnings will be tax free the day you reach 59.5, but only IF you also made your first Roth contribution at least 5 years before that. Consider your first Roth contribution to have been made on Jan 1 of the year for which you made that contribution. Therefore, if you recently made your first Roth contribution, you will have to wait until the 5 year holding period is completed before your Roth will be qualified (earnings tax free).