A Roth IRA is a retirement savings account. Unlike a 401k, Roth IRA contributions are not tax-deductable, however earnings can grow tax-free. To withdraw your money from a Roth IRA retirement account without paying the tax or 10% penalty, you must:
- Withdraw money after age 59½.
- Withdraw money after you have held the Roth IRA account for at least 5 years.
- Younger than 59½? Withdraw money for one of the following exceptions:
- Can withdraw up to $10,000 for a first-time home purchase.
- Can withdraw to pay for qualified education expenses.
- Can withdraw if you become disabled or pass away
- Can withdraw to pay for unreimbursed medical expenses
- Can withdraw to pay for health insurance if you are unemployed.
- Can withdraw to pay for qualified expenses related to birth or adoption.
Note: The exceptions are penalty free, but not tax free if you had the account for less than 5 years.
Transferring your IRA? You have 60 days to deposit the IRA check into another IRA without taxes or penalties. You can do this once every 12 months.
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