anniversary dating gift ideas him - Rules for liquidating roth ira

The Internal Revenue Service (and IRA legislation) allows this because you have already paid taxes on the money you originally contributed into the Roth IRA.This is regardless of your age; you can be age 25, 55, or 75 and still withdraw your contributions without any extra fees.which means you just have to withdraw even more money to get to the amount that you actually need to use.

Depending on the situation, liquidating your account may lead to a hefty state and federal tax bill.

Roth IRAs are funded with after-tax rather than pre-tax money.

If you have been contributing to a Roth IRA for 20 or 30 years you are looking at total contributions of $100,000 to $300,000.

With a Roth IRA without paying any early withdrawal penalties or income taxes to the government.

Dear Reader, This is a great question because a transaction that presumably would be very simple can quickly get bogged down in rules and exceptions. While Roth IRA distributions are often tax and penalty free, there are also situations in which this might not be the case.