Question

Forth ROTH IRA, do we need to wait 5 years to withdraw the original/contribution (NOT earnings)?

Forum|Forum|6 years ago
June 7, 2019
1 reply
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Forth ROTH IRA, do we need to wait 5 years to withdraw the original/contribution (NOT earnings)? I thought the 5 year rule only applies to earnings and NOT original principle but I hear mixed stories. I need some clarification.

For example, if I contribute 6000 in 2019 , by 2020 my account grow to 7000. In 2020 I take out only 6000 leaving the 1000 earning in the account . The 6000 (principle) should be tax and penalty free right?

TurboTax Home & Biz Mac

D

dmertz

Employee

Correct. You can receive a distribution of your original $6,000 of contributions at any time, tax and penalty free.

macuser_22

Employee

"Forth Roth IRA" - do you mean this is your fourth Roth IRA and you already have 3 others?

If so, then the 5 year rule is satisfied if you have owned any Roth IRA for 5 years, unless it is a Roth conversion, in which case, each Roth conversion has it's own 5 year clock.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**