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Message
Withdrawing money from Roth
Posted on 9/8/14 at 7:34 am
Posted on 9/8/14 at 7:34 am
What are the tax implications of withdrawing contributions (not earnings) from the ROTH ? As in, how do you disclose that to the IRS?
This post was edited on 9/8/14 at 7:56 am
3
Posted on 9/8/14 at 7:38 am to GenesChin
(no message)
This post was edited on 9/8/14 at 10:59 am
Posted on 9/8/14 at 7:53 am to LSU0358
quote:
It is taxed at your income level plus an additional 10%. Unless you are paying emergency medical costs or something in that category...withdrawing from a Roth is an expensive proposition.
You are confusing traditional IRAs and 401ks with a Roth bro. Roth is after tax contributions and I want to withdraw only my contributions (which I already have paid taxes on)
LINK
This post was edited on 9/8/14 at 7:55 am
Posted on 9/8/14 at 8:03 am to GenesChin
Could be wrong, but pretty sure there is still a Penalty. And it's around 10%
I think exceptions are like 1st time home purchases and a few others.
I think exceptions are like 1st time home purchases and a few others.
Posted on 9/8/14 at 8:05 am to LSUengineer12
quote:
Could be wrong, but pretty sure there is still a Penalty. And it's around 10%
I think exceptions are like 1st time home purchases and a few others.
There are no penalties for withdrawing your contributions from your roth because they have already been taxed. It is only the earnings in the roth that are subject to taxation due to the lack of taxes paid on them up to that point
Posted on 9/8/14 at 8:16 am to GenesChin
quote:
You are confusing traditional IRAs and 401ks with a Roth bro.
Yeah, with a Roth there are additional qualifiers you need to meet for your earnings...contributions you should be good to go on withdrawals at any time:
-You have reached age 59½.
-The distribution was made to your beneficiary after your death.
-You are disabled.
-You use the distribution to pay certain qualified first-time home buyer amounts.
If you meet one of those qualifiers and the accounts been open 5 years its tax free.
If you don't meet those qualifiers you are at the least taxed at your income level.
If you don't meet any of the exceptions below (after not meeting the above qualifiers) you get taxed an additional 10%:
-You have unreimbursed medical expenses that exceed 10% of your adjusted gross income.
-You are paying medical insurance premiums after losing your job.
-The distributions are not more than your qualified higher education expenses.
-The distribution is due to an IRS levy of the qualified plan.
-The distribution is a qualified reservist distribution.
-The distribution is a qualified disaster recovery assistance distribution.
-The distribution is a qualified recovery assistance distribution.
This post was edited on 9/8/14 at 11:00 am
Posted on 9/8/14 at 8:24 am to LSU0358
That's for the earnings part of it. You can take your contributions out tax and penalty free at any time
Posted on 9/8/14 at 8:44 am to LSU0358
quote:
LSU0358
I am only withdrawing my contributinos. Read the link I posted an it will say that while contributions are a non qualified withdrawel, only earnings are subject to taxes and penalties
Posted on 9/8/14 at 9:04 am to LSU0358
quote:
LSU0358
No offense, but if you are going to try and give advice on this board, please have an idea what you are talking about.
People can and do make financial decisions based on info found here.
Posted on 9/8/14 at 9:21 am to GenesChin
There are no tax implications, you've already paid the taxes on Roth IRA contributions.
Posted on 9/8/14 at 9:45 am to GenesChin
You can take your contributions out whenever. Nothing to disclose. I took out some money last year for a home repair, and my Vanguard statement didn't have anything taxable for that account on it.
This post was edited on 9/8/14 at 9:46 am
Posted on 9/8/14 at 9:54 am to member12
I just did not know if I had to indicate I was withdrawing contributions only
Posted on 9/8/14 at 10:13 am to Sigma
Agreed.
It would be helpful to others if he took that post down.
It would be helpful to others if he took that post down.
Posted on 9/8/14 at 11:00 am to TigerDeBaiter
Corrected second post...should be good to go. Had my Roth's and normal IRA wires crossed this morning.
Posted on 9/8/14 at 1:18 pm to GenesChin
My fault. Didn't realize initially you were talking about contributions only. Got it. I was under the impression you were going to pull it all out. 
Posted on 9/8/14 at 8:41 pm to LSUengineer12
quote:
I was under the impression you were going to pull it all out.
TWSS
Posted on 9/9/14 at 1:43 pm to GenesChin
I would just make sure that there are no ordering rules with respect to the characterization of the money you are taking out. While you might tell the IRS that you are taking out the contributed part of your Roth, the IRS may tell you that it's part earnings and part contributions (or all of one).
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