Roth IRA Early Withdrawal Rules
How to access your Roth IRA before retirement. You can use the Roth IRA for college education planning, first home purchase and much more. We are covering the basics of accessing your Roth IRA before age 59.5.
Roth IRA early withdrawal benefits
– Contributions can be taken out tax and penalty free.
– First time home buyer up to $10,000 lifetime limit.
– College savings but the growth is taxable.
– 5 year rule
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I saw in another video , you can draw out your "contributions" at any time with out getting a penalty "unless you rolled over the funds from another IRA account, if this is true, does it apply to TSP?
Thanks!
So if I put $6,000 per year into my Roth form 2005-2010 I have $30,000 of cost basis. Then in January I invest my $30,000 of basis in TSLA stock. Fast foreword to 2022 and my Roth IRA is worth $7,600,000. If I cashed out all in one year I'm looking at paying ordinary income + 10% penalty on the gain of $7,570,000???? Married filing joint would get me into the 37% tax bracket + 10%. What about setting up SEPP?
Extremely well explained!!! It answers all my questions about the early withdrawal rules.
I’m 15 and when I get my first paycheck from my first job I am planning on putting it in my Roth that I opened last year
Thank you! Saved my life
I have a question:
– I opened the Roth in 2020 (age 67) with $5.
– In 2021, I did a conversion of $10k (from a Traditional IRA).
– In 2022, I did another conversions of 15k.
– Let’s assume that NONE of my Roth had ANY gains, ever!
Having no gains, will I be able to withdraw any amounts, at any time, penalty free? Or must I still endure waiting period(s)?
What about a ira to Roth conversion? If I’m leaving a company and initiate a 401k to Traditional IRA rollover, then do a Roth conversion can I use the conversion amount to withdraw or is that considered capital gains?
What forms do i need to file for Excess contribution removal on ROTH IRA ? ( my situation -No conversion, directly contributed, money already taxed ) .. what form i need to file , is it form 8806 or form 5329, or both or more forms . Please help me with this question, really appreciate it. Thanks!
Thank you for the breakdown!
Hi How do I prove to the irs that I had an roth ira open for 5 year since I had one with vanguard in 2015 and now I have one with fidelity that I open in 2019. I have never filed taxes
Hey Travis, have a question. If I withdraw the gain portion after the 5 years rules but before my 59 1/2 years old for traveling purpose. Do I have to pay income taxes or the 10% penalty or both on that portion?
thanks for the great info! i thought i have to pay penalty when i take out my contributions before 59.5 yo.
If I withdraw contributions, it is completely out and the amount of compounding dollars on lowered for good, correct?
How can I withdraw the money I contribute without affecting the growth on it? The contribution and growth is inclusive per share. So how can I make sure I only take out my contribution and not the growth to avoid penalty and tax? I appreciate your response.
Good Video, although the real Swiss army knife of the finance world is the Index Universal Life insurance policy. It’s interesting that you used that analogy. For other financial professionals who understand how the IUL works, it represents the real analogy. You may consider getting yourself licensed as a life insurance agent, then you can truly provide your clients with the best product in the market. It will open your biz to provide the best options for your clients.
Can you use the contributions portion of the fund for your kids education? Or is it only for the account holder?
can i pull my money and invest it all in a index fund with out taking a hit on taxes? ive had it for 5 1/2 yrs. and its under 10K.
If I wanna take out money for a house purchase, I can’t take out more than 10k?
What about States Tax Laws? I live in NJ and been trying to figure out if the same rules apply as I read otherwise (NJ taxes contributions withdraws from Roth IRA). Can you comment on that?
Is there a way to take gains for any other reasons than listed? Granted you've had the account for at least 5 years.
So are you saying I can deposit $6k for the year of 2019 and then take out the $6k in a month if I choose… Even if I've only had my Roth account for less than 2 years. Are there any penalties for taking out your contributions if you have not had the Roth for 5 years?
Extremely well-made and extremely well explained. I smashed the like button
I pulled all of my IRA of $20k in 2019. Does the current COVID cares act help me to not pay the 10% withdrawal penalty?
So, if I rolled over my 401k that had 200,000 into a self-direct ira that is considered contributions or not? Since you said I can only contribute 5,000 a year I am assuming that is over I open up an IRA?
Is there a specific penalty % for cashing out growth early? I know there's the 10% early withdrawal penalty but I can't find any specific percentages on regards to early withdrawal on growth.
thanks for the video. I'm still confused on the 5 years. Do I have to pay tax if I only take out the contribution (no growth/earning) in LESS than 5 years?
Can I make a withdrawal in 10 years from my Roth IRA without penalty?
If I withdraw contributions from my Roth with the intent of paying it back, what are the rules for this?
So can I take over 10000 for a first home buyer by taking all my contributions then take the gains as the 10k?
Thank you.
You have been the clearest, most understandable, and seemed to cover all your bases on the topic of withdrawal.
(I might be biased because I was looking for a particular answer to a certain question).
None the less, online keeps me 2nd guessing and videos take a while to get to the point.
Video deserves more likes.
Ok so my dad just passed away in January this year……he had 3 roth IRA's acccounts. He had 3 beneficiaries listed. We got the funds in the account, but do we or will we be taxed on the accounts if we take the lump sum option….?
I can you take contributions out even if it's been under 5 years?