I have had a Roth IRA for 12+ years. I unfortunately need to withdraw some of it.
From what I've tried to find out is it true that if I withdraw only the amount that I have contributed over this time there is no penalty? It would just be considered income on my tax return next year?
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
When an early withdrawal of funds from a Roth IRA occurs, the withdrawal is first considered to be from the contributions in the account. These amounts are not subject to income tax or a penalty. If you withdraw all your contributions, the earnings will be subject to income tax and the 10% penalty unless an exception applies.Leave a Comment 324 weeks ago