Bad idea to take ROTH contributions out early? | TigerDroppings.com
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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
23758 posts

Bad idea to take ROTH contributions out early?

Not the gains, just the contributions. Planning for retirement in 5 years, will be 55 years old. Was just thinking if I needed a bit of extra money before I reach 59 1/2, figured I could take some of my contributions out to cover expenses.

Is that an awful idea?


JL
LSU Fan
Member since Aug 2006
2357 posts

re: Bad idea to take ROTH contributions out early?
If you have to pull money out of your retirement funds to get you to retirement age of 59 1/2 you should probably be working till you reach 59 1/2.


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TheIndulger
LSU Fan
Member since Sep 2011
13049 posts

re: Bad idea to take ROTH contributions out early?
It's your account, you would know better than us. You will lose the interest you would get otherwise.


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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
23100 posts

re: Bad idea to take ROTH contributions out early?
quote:

Is that an awful idea?


Nope. There is no penalty for early withdrawal of contributions so you're only losing out on interest savings. Congrats on being so close to retirement!


kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
23758 posts

re: Bad idea to take ROTH contributions out early?
I'm hoping that I wouldn't need to do that, but I'm thinking the ROTH is a good savings account, and if I needed to I could pull some principle out and use it if needed. That was all I was thinking.



JL
LSU Fan
Member since Aug 2006
2357 posts

re: Bad idea to take ROTH contributions out early?
I mean if the rest of your roth and 401K is well padded then i don't see an issue. I've got seperate investment accounts I plan to use to bridge the gap between my idea of retirement age and the governments.


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Venelar
LSU Fan
The AP
Member since Oct 2010
405 posts

re: Bad idea to take ROTH contributions out early?
I plan on doing the same thing when I get older. If I retire early I'll be living on roth/savings acct for awhile.


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