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Can I make an early, non-qulifying withdrawal of any contributions

Customer Question
I made from my Roth...
Can I make an early, non-qulifying withdrawal of any contributions I made from my Roth IRA without taxes or penalties (since the contributions have already been taxed)? For example, I put in $10,000 over the past few years. The balance is now $12,000 ($2,000 of interest). Can I withdrawal (early & non-qualified) up to $10,000 with no penalties or further taxation?
Submitted: 9 years ago.Category: Tax
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12/3/2008
Tax Professional: Bill, Enrolled Agent replied 9 years ago
Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3,153
Experience: EA, CEBS - 35 years experience providing financial advice
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Yes, you can withdraw your contributions first and they will not be subject to tax nor penalties. The IRS has set ordering rules for Roth IRAs that consider distributions to be withdrawn from contributions first.

 

See page 67 - http://www.irs.gov/pub/irs-pdf/p590.pdf

 

Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3,153
Experience: EA, CEBS - 35 years experience providing financial advice
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