Taking out money from a retirement account? (Posted on 1/22/13 at 11:17 am)
My wife worked at a doctor's office for a year or so after college waiting to find a real job and was putting money into some sort of John Hancock retirement account. There is like $900 in it right now but what are we are going to do with a $900 retirement account that no more money is going to be put into?
All of that is to say if she takes the money out how much can expect to lose from taxes, early withdrawal penalties etc....?
foshizzle LSU Fan Member since Mar 2008 25080 posts
re: Taking out money from a retirement account? (Posted on 1/22/13 at 12:17 pm to Volvagia)
For a Roth, you can take out at any time without penalty up to the amount you have put in. Anything above that is treated much like a traditional IRA, i.e. interest and penalties do apply.
Example: Les Miles and John Chavis each contribute $1000 to their Roth accounts. At the end of the year, Miles' account is worth $1100 and Chavis' is worth $900.
Miles can take out $1000 without penalty. Chavis can take out the full $900, again without penalty. If Miles takes out $1100, he will owe tax and penalties on the last $100.
