Early Withdrawal

Question: Early Withdrawal From Roth Ira Question?

The value of my ROTH IRA currently is less than what it was when I first opened the account. If I withdraw the money today, will I still be charged an Early Withdrawal Penalty?

Answer: no. you’ve already paid taxes on your contributions. you can actually take your contributions out at any time for any reason completely tax free in a Roth. you only ever have to pay the penalty on earnings, which in your case doesn’t even apply.

but i would suggest that you use this as a last resort. this is a retirement account. you can’t just put all the money back into it if you change your mind.

there won’t be any tax penalties, but the opportunity cost will be huge.

The Balancing Act Show 1103 – Homewatch International