What is the Roth IRA Withdrawal Penalty?
The most attractive part of the Roth IRA is that your money grows tax-free. You can deposit up to $4000 a year into the account. Your money can then later be withdrawn without paying federal taxes when you turn 59 1/2 yrs old. The amount you deposit must reside in the account for 5 years before you can withdraw it tax free. There are no early withdrawal penalties for making a Roth IRA Early Withdrawal. Your distribution must be one of the following: • Made to your beneficiary or estate, after you die • Used to pay for your first time home • You have become disabled within the definition of the IRS code Roth IRA Early Withdrawal is not recommended and should only be used in situations of desperate need. The Roth retirement savings plan and Roth IRA Withdrawal Penalty information can be found under secion 402A of the Internal Revenue Code. To browse our guides to Roth IRA Withdrawal Penalty click here.
