1) Are they tax exempt?
2) Would I be able to withdraw them even if I am not at the proper age to withdraw my money from my Roth account?
2007-02-26 05:01:25 · 4 answers · asked by bizzlekizzle2 2 in Business & Finance ➔ Investing
1) Dividends are tax-exempt as long as you withdraw them after 59 1/2 years of age.
2) You can withdraw dividends and all other gains early, BUT you'll pay taxes and a 10% penalty. You CAN, however, withdraw your CONTRIBUTIONS at any time without taxes or penalty.
2007-02-26 05:28:36 · answer #1 · answered by LongArm 3 · 1⤊ 0⤋
all withdrawls from a Roth are tax free after age 59 1/2 regardless of principal, interest, or dividends. Anything before that time, is subject to penalty.
2007-02-26 13:10:19 · answer #2 · answered by ricks 5 · 0⤊ 0⤋
Any dividends paid are retained within the IRA and merely increase the IRA balance.
Withdrawal of dividends is subject to the same penalty and taxes as withdrawing any of the funds contributed to the IRA.
2007-02-26 13:06:45 · answer #3 · answered by Latigo 3 · 0⤊ 0⤋
1. They just become part of the account. Nothing special about them at all. All money coming out of the Roth is tax-exempt. 2. - You know better than that ;)
2007-02-26 13:08:45 · answer #4 · answered by vegas_iwish 5 · 1⤊ 0⤋