Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I have a Vanguard Roth IRA that's close to being 5 years old. It was started on September 2nd, 2014. I'm 60 years old at present and retired due to a RIF at work.
If I'd need to, can I start withdrawing as early as say September 3rd 2019 tax free, or do I have to wait until the following month?
Thanks!
P.S. Is the below poster correct, it's just "year specific"? So since I established it in September 2014, I could withdraw at any time in 2019 if needed, and not have to wait for September?
Lucy_C is correct. You are ok to start any time in 2019. [LEFT]The five-year rule for your Roth IRA earnings starts on [/LEFT]January 1st[LEFT] of the year you make your first contribution.
Note you can take out your contributions at any time without a penality.[/LEFT]
The 5 year rule begins on Jan 1 of the year in which made the first deposit into the Roth. That rule applies to any returns on your investments. Your contributions to the Roth can be withdrawn penalty free any time (because it was after tax money). You already meet the older than 59 1/2 requirement to avoid penalty.
Thank-you to both of you, I really appreciate your responses.
That makes sense, but I wanted to make sure as I didn't want to run afoul of a rule, and have to pay some sort of taxes.
I have left you both positive rep points.
By the way if you do get a letter from the IRS saying you owe money do not panic. They do make mistakes. Just write back and give them all the facts and if you keep after them you should win the case.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
