I have had my Roth IRA for 7 years and contributed the maximum every year. I'm 36 and thinking of withdrawing from my from it but don't want the penalties. I understand if I take out the gains I will be subject to a penalty on that, but what if I only take out the contributions? I believe I've contributed roughly 20 k - anyone know if I will be subject to an early withdrawal penalty on the 20 k contribution amount and if so, how much?
Roth IRA withdrawl
- Thread starter JayDogSmooth
- Start date
If you say you've contributed the "max" for 7 years, you would have contributed $38,500, not $20,000.
The max you can contribute annually is $5,500.
You aren't penalized for taking out the contribution portion of your Roth, since it is already after tax money. You would be penalized if you take out gains.
The max you can contribute annually is $5,500.
You aren't penalized for taking out the contribution portion of your Roth, since it is already after tax money. You would be penalized if you take out gains.
That's the Current Max. It was $3k back when he started. Yes you can take out your contributions with zero tax impact. Contributions always come out first.
You could've ignore the post but you wasted 2 min to post a useless respond. Now you get it?
It's a RETIREMENT account. I know you're 37 now but some day you'll be ready to retire and may need the money to live on. Don't withdraw, and keep on contributing to it as much as you can. Doesn't have to be the max if you need extra cash to live on now. Think about this, you may have 20 or 30 years to live after you retire. You'll need quite a
bundle of money beside Social Security & a pension if you have one. Don't withdraw from your Roth and don't withdraw from your 401K if you have one.
