View in: Desktop
Copyright @2024 TigerDroppings.com. All rights reserved.
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Posted by
Message
Contribution Withdrawal from Roth IRA - Question
Posted by poochie on 6/10/16 at 11:01 am00
I want to pull some money out of a Roth IRA I have set up that will be less than the total amount contributed. I called vanguard and they said it's as easy as giving them the OK and they'll send the money. He said the burden is on me to prove to the IRS that i withdrew less than i've contributed using various tax forms available from their website showing my contributions and withdrawals. is it that simple or is there a catch somewhere that i might not be seeing? i don't want to put myself in a bind with extra taxes and penalties.
I did it this past year and it was that easy. I never even had to speak with someone at Vanguard. I did it online and had the check sitting in my mail box a few days later. When you do your taxes for the year, just make sure you fill out the forms correctly.
When I go to make a withdrawal Fidelity gives me this disclaimer. How are we not subject to the 10%?
Early Distribution
To discourage the use of IRAs for purpose other than retirement, the law imposes a 10% additional tax on early distributions from traditional and Roth IRAs unless an exception applies. Generally, early distributions are those you receive from an IRA before reaching age 59½. The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount.
Distributions that you roll over or transfer to another IRA or qualified retirement plan are not subject to this 10% additional tax.
There are exceptions to this 10% additional tax for early distribution that are:
– Made to a beneficiary or estate on account of the IRA owner's death
– Made on account of disability
– Made as part of a series of substantially equal periodic payments that are not less frequently than annually for your life (of life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
– Qualified first-time homebuyer distributions
– Not in excess of your qualified higher education expenses
– Not in excess of certain medical insurance premiums paid while unemployed
– Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
– Due to an IRS levy, or
– qualified reservist distribution
EDIT: Is it due to this: "The 10% additional tax applies to the part of the distribution that you have to include in gross income." Would it not be included in gross income when filing, because it was a contribution made by us?
Early Distribution
To discourage the use of IRAs for purpose other than retirement, the law imposes a 10% additional tax on early distributions from traditional and Roth IRAs unless an exception applies. Generally, early distributions are those you receive from an IRA before reaching age 59½. The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount.
Distributions that you roll over or transfer to another IRA or qualified retirement plan are not subject to this 10% additional tax.
There are exceptions to this 10% additional tax for early distribution that are:
– Made to a beneficiary or estate on account of the IRA owner's death
– Made on account of disability
– Made as part of a series of substantially equal periodic payments that are not less frequently than annually for your life (of life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
– Qualified first-time homebuyer distributions
– Not in excess of your qualified higher education expenses
– Not in excess of certain medical insurance premiums paid while unemployed
– Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
– Due to an IRS levy, or
– qualified reservist distribution
EDIT: Is it due to this: "The 10% additional tax applies to the part of the distribution that you have to include in gross income." Would it not be included in gross income when filing, because it was a contribution made by us?
This post was edited on 6/10 at 12:22 pm
You already paid taxes on the contributions in a Roth IRA. A penalty would only apply to a withdrawal of the tax deferred earnings on the contributions. I think the contributions also have to be in the account for a minimum of 5 years to withdraw.
This post was edited on 6/10 at 12:25 pm
Back to top
Follow TigerDroppings for LSU Football News