Before You Withdraw from Your Roth IRA, You NEED to Know THIS... If someone wants to cash out their Roth IRA or take out a substantial chunk, what’s the first thing they need to know? 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 your Roth IRA. However, you will pay taxes on the gains you made plus pay the 10% early withdrawal penalty. #shorts #rothira #ira #cashoutira #retirementsavings... ( read more )
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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 :)