Roth IRA to be used for Emergency fund????? (funds, paying, taxes)

[LTown Driver]

Have been looking at the use of a Roth IRA to hold Emergency funds. I am 59 my wife is 49. Have never funded a Roth IRA in the past. Plan is to max out for both the wife and myself. So a total of $11.5K this year then $13K next year. Looking through the withdrawal requirements it is not completely clear on what would be non-qualified distribution.

The question would come in the form in that if the earnings were not removed only a portion of the contribution would there still be a penalty?

Looking to continue to fund the Roth to the maximum for at least another 5 - 6 years then use it as a college fund for a then recent High School graduate.

On a side note 401K's are fully contributed to.

Comments please.

[flyonpa]

The Money you put into a Roth is After Tax money,
Only the Gains would be taxed if you removed them before your are 59.5.

The Initial Funding 11.5k & 13K can be removed at any point without paying taxes on them. (You already paid the tax on them).

You might also want to look at the 529 plans for college, some states give tax breaks on State Income taxes for using that states plan.