Roth Question

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Posts: 445
Joined: Mon Oct 06, 2008 5:14 pm
Location: Texas

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.
Rule 1. Never lose money. Rule 2. Never forget Rule 1.

User avatar
Kevin M
Posts: 9891
Joined: Mon Jun 29, 2009 3:24 pm

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.

Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
Posts: 8097
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

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.

Post Reply