2006-12-20 01:34:59 · 5 answers · asked by carobygirl 6 in Business & Finance ➔ Personal Finance
A Roth IRA is built with contributions taxed already... You can take out all the money YOU put in with no tax consequence or penalty. You however cannot touch the interest THAT money has made without getting a penalty and taxed.
This is why the Roth is so desirable to young people, so they can get at the money they put in it in case of emergency.
2006-12-20 05:22:20 · answer #1 · answered by Kitty 6 · 0⤊ 0⤋
If you are under 59 and one-half you will pay tax and penalty on any income taken out of the account. The first dollars out are your after tax contributions. As long as you don't take out more than these dollars there are no tax consequences.
2006-12-20 04:08:06 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
Here are the rules concerning IRAs.
http://www.irs.gov/pub/irs-pdf/p590.pdf
2006-12-20 02:03:20 · answer #3 · answered by Phentari 3 · 1⤊ 0⤋
10% penalty.......taxed as income.....basically you lose about 30%.....take out 3,000K and they'll give you 2,100 or so....
ITS ALWAYS A BAD, BAD IDEA.....just because you can, doesn't mean you should......truly, stay out of any retirement accounts....
2006-12-20 02:48:28 · answer #4 · answered by Paula M 5 · 2⤊ 1⤋
i think you'll pay taxes on it but no penalties.
2006-12-20 01:43:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋