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Learning, Sharing, and Teaching => Investor Alley => Topic started by: tophdna on October 05, 2016, 07:57:16 AM

Title: Roth IRA Withdrawal
Post by: tophdna on October 05, 2016, 07:57:16 AM

I just need clarification on one of the rules for withdrawing from your Roth IRA before age 59 1/2.

Can I withdrawal from the account (penalty free) as long as I withdrawal LESS than the principal investment? Meaning I am not withdrawing any of the interest that has gained? Do the rules still apply even if that is done (such as needs to be 5 years old, etc.)? Thanks!

Title: Re: Roth IRA Withdrawal
Post by: Nick_Miller on October 05, 2016, 08:12:53 AM

You can always withdraw Roth IRA contributions penalty free.

Title: Re: Roth IRA Withdrawal
Post by: Cwadda on October 05, 2016, 09:18:08 AM

Yup, like Nick_Miller said, you're fine to take out contributions. The penalty will apply if your account isn't at least 5 years old or if you're not 59.5.

So say you contributed $5,000 per year for 3 years and it was worth $17,000. You could take out that $15,000 without penalty. I'd call your institution (hopefully Vanguard or Fidelity) and have them walk you through the process just to be thorough. They have good customer service.