Understanding Roth IRA Withdrawal Rules

Explanation of Roth IRA withdrawal rules...when taxes or penalties apply.

Links in this video:

#RothIRA #Roth401(k) #RothConversion

DISCLAIMER: This video is only helpful hints and education. It is not specific tax, legal or investment advice. Before considering acting on anything you see in this video, first consult with your tax, legal or investment advisor. While the information expressed in this video is believed to be accurate, neither Andy Panko, CFP®, RICP®, EA nor Tenon Financial LLC make any guarantees to its accuracy.

[buckweat]

I do all my trading on the toilet too. I am glad this video was recorded in the bathroom.

[RajReviewsDualSportPhotoGadget]

Most clear and complete explanation on YouTube.👍

[stirlingblackwood]

7:29 I thought withdrawing gains to buy your first home still incurred taxes, but no penalties.

[minostro]

Wow, finally someone explained it the rules in such clear way!! Thank you🎉 —some CPAs told me that I have to wait 5 years before taking the contribution part (after tax) of my Roth 401K -> Roth IRA, and I was sure they were wrong. And you confirmed it!

[tomc]

Please confirm the following (as I have received different answers from different sources - including from the IRS!). Assumed Situation: I am over 59.5 years of age. Last year I converted an IRA to a ROTH in the amount of $10, 000. This year I want to remove $5, 000 of that converted money. Are there any penalties or taxes that I would owe on that $5, 000 withdrawl after being in the ROTH for just 1 year?

[FlaschDJ]

Great.
All the other videos were made by windbags or salespeople. Thx

[vandrex]

ROTH IRA - TRADITIONAL IRAs.

Reflecting about my life and every time I remember that I'm 36 years old and my wife is 32 years with a combined net worth of $1.2M gives me great joy.

No more 9-5, kids now a bit grown in school, no debts, it still seems like I'm a dream. So many years ago, it was tough and hard to manage the family with a lot of debts. Had to borrow from my friends and was insulted severely due to hardships. But now the grass is much greener on this side.

I believe we achieved this through proper regular saving and key passive income methods.

[dalton]

You explain the distribution rules much simpler than my CFP study prep explains it, thanks!

[aidenlong]

I have only perfect records on spreadsheets of contributions to a Roth IRA. These contributions were made 10 to 17 years ago that have been rolled into 3 different brokers. Brokers do not keep 5498 forms beyond 10 years. The IRS suggests keeping tax records for 7 years. How can contributions be removed without IRS proof of them?

[rockygeurkink]

This is the most detailed, and clearly explained video on Roth IRA withdraws.

[bmp]

Some articles say only the original Roth IRA account needs to have been 5 years old for earnings by a beneficiary to be tax free. But some say the new Inherited Roth IRA account to hold the money has to be 5 years old. The Roth IRA I inherited was more than 5 years old at time of passing but most of those years were with different brokerages. My brokerage managing it entered a "T" on my 1099-R saying it was because her account was only with them 3 years after having been transferred from another brokerage.

Do I have to pay any taxes on earnings from the Inherited Roth IRA account holding the money or do I have to wait 5 years myself also?
Why do you think the brokerage entered "T" instead of "Q"?

[lakshmi]

your videos are really great to understand for begginers too. If I withdraw for college tuition from Trad IRA, I would not incur penalty, is it subject to tax still?

[paulstanley]

The IRS does not agree with you at the 2:22 mark.

I withdrew $5, 000 of my contributions 4 1/2 years after I put it in. The IRS sent me a bill (CP2000). I went back and forth with them for 14 months until I gave up and sent them $1, 388 in taxes and interest. The only other option they gave me was to prove my Roth IRA was over 5 years old.

This is exactly how they would respond back to me every time, word for word. I'm looking at one of the letters right now.
"One of the criteria for the IRA to be considered a qualified Roth IRA distribution is the Roth IRA must have been maintained for a minimum of 5 years."

[EBMB]

Is a QDRO conversion to a Roth IRA accnt taxable?

[JAhnKor]

Thanks for the video, had a specific question regarding Roth 401k to Roth IRA rollovers:

My Roth 401k consists of Contributions and Earnings. If I retired very early and rolled that Roth 401k into my Roth IRA, would the rolled over money still be considered Contributions and Earnings when it rolls over into the Roth IRA? If so, wouldn't that technically mean that I am able to withdraw contributions from my Roth 401k early without penalty, by first moving it over into a Roth IRA (where the rules allow me to withdraw Contributions at any time tax + penalty free)?

[OddBall]

OK, Here is my scenario: I'm now 65, I started investing the full amount every year since 2010 ($7000.00 then $7500.00 now.). I've invested these contributions in to stocks that pay dividends. The dividends have been reinvesting back in to more stocks. The question I have is; Do I have to sell the stocks to take disbursements? or (my plan was) Can I stop the reinvestment programs, therefore creating a cash balance in my Roth and then take that cash as disbursements with out selling the stocks? There again creating an endless supply of cash or at least until they stop paying dividends. Thanks

[sakky]

By far the best video on this topic, clearly explained, and help to "demystify" the topic. Keep up the good work!

[angelaaaa]

This was a great and informative video. just have a question and appreciate your response, I just opened my Roth IRA and contributed the full amount which was $6500 and already invested $3000 of that in funds so far. My question is that if I want to withdraw my contribution today, is it going to be the original $6500 before investing or just whatever cash is left after my investment? Like in this case only $3500?

[johnhernandez]

How do I get access to the ira account do I need to call someone or go two a website need help take out money

[Pjeski]

Very good video, helpful and informative. Thank you and good job sir!