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gp_

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« on: December 03, 2016, 12:49:11 PM »
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« Last Edit: December 19, 2016, 09:13:28 PM by gp_ »

Lagom

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Re: Roth IRA + retiring early question
« Reply #1 on: December 03, 2016, 12:52:49 PM »
Keep in mind you can always withdraw Roth IRA contributions with no penalty, so depending on the size of your IRA at retirement, that should bridge at least some of the gap.

Spork

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Re: Roth IRA + retiring early question
« Reply #2 on: December 03, 2016, 01:15:06 PM »
Keep in mind you can always withdraw Roth IRA contributions with no penalty, so depending on the size of your IRA at retirement, that should bridge at least some of the gap.

Thanks for your reply.

I thought there was an early withdrawal penalty of 10% on the amount of the distribution prior to age 59 1/2. I know there are some exceptions, but I don't know them in detail.

That penalty hits you if you withdraw the earnings... but not the original contribution amounts.

Lagom

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Re: Roth IRA + retiring early question
« Reply #3 on: December 03, 2016, 01:16:15 PM »
The penalty is on withdrawing earnings, but you can take out any amount equal or below your total contributions (which were made post tax, after all). So, for example, if you were to contribute $5k/year for 20 years, you could pull out $100k penalty-free.