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My Roth IRA has a balance of $126K. Of this, $24K is my original contributions made between 1999 & 2009, the rest is gains. My understanding is that I can withdraw my contributions with no tax consequences which in my case, could is $24K.
Is there anything that I need to watch out for before I make the withdrawal?
Per the IRS, you can pull out original contributions after 5 years. If the contributions have not been there for 5 years, there can be a 10% penalty. However, there are a variety of exceptions that will waive the penalty.
Location: Chapel Hill, NC, formerly NoVA and Phila
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Originally Posted by cb73
Per the IRS, you can pull out original contributions after 5 years. If the contributions have not been there for 5 years, there can be a 10% penalty. However, there are a variety of exceptions that will waive the penalty.
No, you can pull out the original Roth IRA contributions at any time without penalty. There may be a penalty if you withdraw the earnings (or distributions in IRS terminology) on those contributions if you take them out before age 59 1/2.
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