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Looking for clarification on withdrawing contributions from a Roth IRA.
Roth IRA has been open less than 5 years
Would be withdrawing contributions for closing costs as a first time home buyer
Withdrawal would be 5K of my contributions to Roth
No earnings would be touched on withdrawal
Under age 59 1/2
Would I incurr any penalty?
Thank you and I apologize if this has been discussed previously
You can withdrawl contributions at any time for any reason without penalty or tax
This is wrong. You cannot withdraw from any IRA without penalty unless you are over 59 1/2. You might be confusing the penalty with the tax. The tax has already been paid on a Roth.
This is wrong. You cannot withdraw from any IRA without penalty unless you are over 59 1/2. You might be confusing the penalty with the tax. The tax has already been paid on a Roth.
If you are going to call someone wrong you should be correct in what you are saying. You are wrong however. You can withdrawal Roth contributions at any time for any reason without penalty or tax.
I'm not confusing anything but rather providing the correct answer
This is wrong. You cannot withdraw from any IRA without penalty unless you are over 59 1/2. You might be confusing the penalty with the tax. The tax has already been paid on a Roth.
Since only contributions are being withdrawn, it's penalty and tax free. If earnings were being withdrawn, there may be a tax. See IRS Pub 590-B.
I appreciate the responses. I read a few "articles" and each had different requirements listed for withdrawing contriubutions for a first time home purchase.
I appreciate the responses. I read a few "articles" and each had different requirements listed for withdrawing contriubutions for a first time home purchase.
Those articles, although they may not state it clearly, are in reference to the EARNINGS portion of your Roth. CONTRIBUTIONS, as previously mentioned, can be withdrawn at any time, for any reason, with zero tax or penalty.
Sure, bank tellers don't need to know anything but how to count! lol
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You're in banking? Seriously?
