How Do You Make A Roth IRA Withdrawal?
Roth IRAs were established in 1998 as a result of the Taxpayer Relief Act of 1997. They provide a benefit that isn’t available for any other form of retirement savings. Since contributions are made with already taxed income, money contributed to a Roth IRA may be withdrawn tax free at any time. Even better, if the investor meets certain requirements, all earnings are tax free at the time of the IRA withdrawal. Determine eligibility for an investor to make a tax free Roth IRA withdrawal. Consider type of withdrawal on both contributions and earnings or if the earnings portion may be taxed. Qualify for an entire tax free withdrawal by either being at least age 59.5 years or one of the following: disabled; a deceased owner’s beneficiary; use for qualified first-time home buyer costs (lifetime limit of $10,000). There are additional ways to qualify (see Resources). Contact the financial institution which holds your Roth IRA and request the withdrawal. Meet with a financial advisor and proc
