How Do You Avoid Roth IRA Early Withdrawal Penalties?
Roth IRAs are a great way to save for retirement, particularly for young men and women who are just starting their careers. The difference between a Roth IRA and a traditional IRA is that you pay taxes up front on the money that you put into a Roth, while the money that you put into a traditional IRA is taxed only when you withdraw it. This makes the Roth IRA particularly attractive for people who are in a low tax bracket now, who can pay the low taxes up front and then watch their money grow tax-free in a Roth IRA for as long as 45 to 50 years! Unfortunately, Roth IRAs have strict withdrawal rules – and very steep penalties if you do take out money early. This guide will help you to take an early distribution from your IRA without paying the steel Roth IRA early withdrawal penalties. Leave your money in your Roth IRA for 5 years. This is absolutely essential to claiming any kind of penalty-free early withdrawal. Even if you qualify for any of the exemptions that the IRS has put in pla
