IRA Rules

Posts Tagged ‘rules about iras’

Question: Question about the 5 year rule on a Roth IRA account.?

I’m 22 years old and have got into investing. I have about 10,000 that i have been playing around with and would really like to start an Roth IRA. All though I plan on buying a house and going back to school and would like access to the money in the next 5-10 years.

I have been told that if you have money in a Roth IRA that you can take the money out without tax penalties if it has been in the account for 5 years or more.

Can someone explain this to me in better detail. I always thought that you have to wait till you get 59.5 years old to take it out. Please help me thanks

Answer: You do.

You pay no taxes when you make qualified withdrawals after age 59½ and your account has been open at least five years.

Investing & Retirement Funds : IRA Early Withdrawal Rules