IRA Rules

Question: Can I withdrawal contributions to Roth IRA w/o penalty or any other tax etc.?

I would like to withdrawal a portion of the contributions to my Roth IRA.
No special reason other than the economy stinks and I can use the cash. In one sentence the IRS seems to say you can withdrawal from Roth no problem and in the next say it has to be for a small list of reasons or your taxed/penalized.

My belief is that I can pull out the contributions BUT not the earnings FROM the contributions.

Is this correct?????

Thanks for your time.

Answer: That is correct. You can pull out the contributions from your ROTH without taxes or penalties. If you pull out more than your contributions, then you will pay penalties on the earnings that you withdraw if you are not yet 59.5 years old.

Instead of taking money from a nice vehicle where the earnings are tax free, why don’t you just move them into something less volatile of you are nervous about the stock and bond markets. You can move it into the money market and make 3% which will be tax free as long as it is in the Roth. Then you can always move it back into investments once the markets look ripe again.

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