Early Withdrawal

Archive for June, 2008

Question: Taxes on Early Distribution of Roth IRA Principal?

I’m considering a case where the holder of a Roth IRA is less than 59 and no other “early distribution exception” applies. I’ve heard that the principal added to a Roth IRA can be withdrawn at any time without penalty. Is this true? Can someone please explain how this would work and point to appropriate IRS documentation?

Answer: Here is a site with a very useful chart on the various Ira Withdrawal scenarios

http://www.rothira.com/disttax.htm

The IRS link covers the details.

IRA ROTH, Money Concepts for Life

Question: withdrawals?

My doctor prescribed me Hydrocodone for a bad knee injury. I have never taken pain killeers before, with the exception of mild tylenol occasionally. I have been taking it for 7 days and I am noticing my knee feeling better, so I have decided to quit taking them, so that I do not get addicted. I had to leave work early today because I began having a bad reaction including, extreme headaches, stomache aches, nausea and vomiting, overheating when others in the office were very cold, and dizzyness. I was also extremely anxious, and crying. What can I do to make it stop, are these withdrawals, and how long will it last? I do not feel comfortable driving or doing anything other than laying down. HELP!

Answer: You need to ween yourself off. You can’t just STOP. It’s bad, as you’ve noticed. Cut your dosage in half every time you think you can. Usually every 3-7 days.

BONES ♥ (Booth&Brennan) – The Only Exception

Question: Under what circumstances can you withdraw money from a Roth IRA early, without penalty?

Answer: You can always take out your contributions to your Roth without penalty. You just cannot take out the earnings on your Roth before the 59 and a half years mark without incurring penalties and taxes.

Stock Market Investing Tips : What Is an IRA Account?