ANSWERS: 1
  • Roth IRAs are a special type of individual retirement account that does not offer a tax deduction for contributions, but does not tax earnings as long as the distributions are qualified.

    Contributions

    You are allowed to withdraw your contributions to a Roth IRA at any time without penalty.

    Time Frame

    You must wait at least five years from the time you open your Roth IRA account before you can withdraw the earnings without paying a penalty.

    Age

    If you are at least 59 1/2 years old, your withdrawals are qualified as long as you meet the five-year requirement.

    First-Time Home Purchase

    You can withdraw up to $10,000 of earnings without penalty if you use the money to purchase your first home.

    Death or Disability

    If you suffer a permanent and incapacitating disability, your withdrawals count as qualified distributions. In addition, if you die, your heirs may take qualified withdrawals even if you were not 59 1/2 at the time of your death.

    Source:

    IRS: Roth IRA Rules

    Fairmark: Distribution Rules

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