Roth Question

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lws6772
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Roth Question

Post by lws6772 » Thu Mar 09, 2017 5:36 pm

Started my Roth back in '98, contributed to it for several years in a row and will be 59.5 next month. I would like to start contributing again. If I decide to pull money out of it in say 3 years, will there be any problems, since the new contributions will not have been in the Roth for 5 years. It's my understanding there should be not problem, but am just asking in case there is something I'm missing. Thanks very much for any replies.
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Kevin M
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Re: Roth Question

Post by Kevin M » Thu Mar 09, 2017 6:10 pm

No problem. Publication 590-B (2016), Distributions from Individual Retirement Arrangements (IRAs)
A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.

It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and

The payment or distribution is:

Made on or after the date you reach age 59½,
Also, you can withdraw contributions anytime tax free and penalty free, so it's only the earnings that really are at issue with respect to the qualified distribution criteria.

Kevin
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celia
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Re: Roth Question

Post by celia » Thu Mar 09, 2017 7:41 pm

The simple answer is if you have had a Roth for at least 5 years and are over 59.5, you can withdraw anything you want tax-free.

So you are good to go with what you have in mind.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.

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