Financial Information
What are the rules about withdrawing contributions (not interest) from a Roth IRA?
Question : What are the rules about withdrawing contributions (not interest) from a Roth IRA?
Please cite a source, thank you!
ira rules
Best answer:
Answer by Christopher C
Contributions to Roth IRAs are made only from earned income that has already been taxed (and is not tax deductible). So withdrawals up to the total of contributions are federal income tax free.
You can always withdraw Roth contributions–any time for any reason–penalty and tax free. The reason is that you deposited that money after-tax, so you don’t owe the govn anything on it (now or ever).
Sources: http://www.fool.com; http://www.cnnmoney.com; Yahoo! Finance; MSN Money; et al.
If you want “proof” of a source, just Google “Roth IRA withdrawals.” You should get dozens of official sites ready to confirm this information.