This probably refers to "seasoning" and it only applies to earnings, that is, money above your contributions. The amount you've contributed can always be withdrawn without penalty, full stop. No need to delay, no seasoning period required.

However, seasoning probably doesn't apply in your case b/c you normally have to have some sort of justification like disability. Paying off student loans probably doesn't count.

You could do it with contribution money though. Whether it's a good idea to do this or not is your call, but personally a 7.5% guaranteed return (or higher) is pretty good. OTOH you'd have to balance it against how long the loan is projected to last. If you're due to pay it off fairly soon anyway it might be better to keep the money in the Roth because even though your return might be lower you get to keep it in there until you retire.

OTOH if you're looking at many years of 7.5% debt I'd carefully consider doing that.

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Posted by KG6

Member since Aug 2009

10920 posts

Posted on 6/18/14 at 8:10 am to foshizzle

We're looking at paying only half of the loans (30k+) that range between 7.5% and 9%. It would take about 5 years to pay off at the rate we pay monthly. I'm not planning to pull the money out of the Roth, I just want to know that the contributions are available for emergencies since I'll be cutting down my savings significantly to pay this off.

I have mine through Merril Lynch and when I asked them, they said I can touch it after 5 years. Looking to get away from them anyway due to not having any advisors in my area, but I thought it was bad info. I cashed out a good bit of money in another fund and you could tell the guy didn't care to help me once he realized I was taking all my money out.

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