How can I close my Roth Ira? I know I have to pay taxes on it. Is there a large penatly amount? And how long does it take to close a IRA?
2007-01-02 05:56:02 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I'd suggest doing just about anything possible to keep your Roth IRA. These are basically gold mines. Tax free and can be kept indefinitely. Yes that means you could put $4000 in one today and 200 years from now your great great great great grandkids could pull $50,0000,0000 (or some other absurdly large amount)tax free out it. That type of account is one you should hang onto if at all possible.
2007-01-02 06:35:57 · answer #1 · answered by paulie_biggs 2 · 0⤊ 0⤋
Normally you do not have to pay taxes on a Roth IRA, since taxes were already paid on the funds deposited into a ROTH unless you've had it less than the 5 year withholding period.
If you are under 59 1/2 then you are penalized the 10% from the IRS.
Now if you have it in a variable rate IRA and your financial institution is in town you should be able to do all of this in one day.
If you have it in a ROTH IRA CD you will still be able to do all of this in one day, but you are also going to be penalized for closing out the CD before maturity.
2007-01-02 14:51:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
yes there are taxes, and there may be a penalty, are you using the money for a house or education? have you owned it for five years? and why in the world would you want to close out a roth ira? if you dont like the company just roll it over to a different company, it doesnt make sense to lose a roth ira , you can only add so much a year and the longer you put off adding money the less retirement you will have
2007-01-02 06:02:07 · answer #3 · answered by swenjj 4 · 1⤊ 0⤋
What do you recommend by "minor?" in no way heard of a "minor" IRA -- Roth or classic... the optimal annual contribution to all IRAs mixed is the decrease of your earned income for the three hundred and sixty 5 days or $5,000. while you're age fifty 5 or older you could kick in one extra $500 in step with 3 hundred and sixty 5 days. in case you kick $5,000 into the Roth IRA then you definately can not positioned something interior the classic IRA and vice versa. or you could split contributions between the two any way which you opt for, as much as the above limits. Any extra contributions entice a 6% excise tax for each 3 hundred and sixty 5 days that they are left on deposit interior the IRA. it is sufficient to wipe out any good points in some years so which you opt for to ward off that.
2016-12-15 07:13:22 · answer #4 · answered by hogans 3 · 0⤊ 0⤋
there are no taxes on a Roth IRA. You put the money in with after tax dollars.
2007-01-02 08:51:16 · answer #5 · answered by sm4125 3 · 0⤊ 1⤋
Depending on the reason for your withdrawal you may or may not pay taxes/penalties on your withdrawal of principal. You will pay taxes/penalties on your withdrawal of earnings. Generally, 20% tax and 10% penalties depending on the state in which you live.
How long to close depends on the custodian who holds the account.
2007-01-02 11:33:36 · answer #6 · answered by Gen X Millionaire 2 · 0⤊ 0⤋
Do you really need the money? I think you'll be much better off, tax-wise, if you draw from the principal but leave whatever gains your investments had had. Like if you put in $4,000 and now it's $4500, leave the $500.
2007-01-02 12:52:35 · answer #7 · answered by njyogibear 7 · 0⤊ 0⤋
It takes two minutes to close. The fees vary depending when you started it. There might not be any. Talk to the custodian who holds it.
2007-01-02 07:12:57 · answer #8 · answered by Vegas 2 · 0⤊ 0⤋