In this video, we’re covering what you need to know before you cash out your Roth IRA or take out a good sized chunk of cash from it – and what you need to know to avoid paying the 10% penalty for early withdrawal. ➡️ Must-watch video: Should I STOP Funding My Retirement? ✅ SUBSCRIBE to NOT being a transaction ever again... ✅ Like us on Facebook! ✅ Check out our site for more tips The rules allowing a Roth IRA to be 100% tax-free and penalty-free are firm: Hold the account for more than 5 years and be age 59 ½ or older. Now, if you’re under 59 ½ and you want to withdraw ALL or SOME of the money from your Roth – how much you have to fork over to the government for early withdrawal is determined by how long you’ve held the account. And that amount is 5 years. If you have had your Roth IRA for under 5 years and you are under 59 ½, you will be penalized 10% by the IRS. Remember, your contributions are always free from taxes since you deposited after-tax money into
Timothy Sumer is a philanthropist and motivational speaker empowering young entrepreneurs across the nation. He speaks on starting new businesses and the importance of branding in the digital age. Timothy Sumer has a BA in Accounting from NYU and a Masters in Information Technology from MIT. Tim enjoys traveling around the globe, driving exotic sports cars, molecular gastronomy, exploring new cultures, and keeping on top of the latest technology trends. Hope you enjoy Timothy Sumer's page :)