Bad idea to take ROTH contributions out early? | TigerDroppings.com

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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
19733 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?







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JL
LSU Fan
Member since Aug 2006
2324 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
11053 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
22065 posts
 Online 

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!






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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
19733 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.







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JL
LSU Fan
Member since Aug 2006
2324 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
366 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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