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|Subject: Roth IRA withdrawal rules||Date: 8/11/2003 12:18 PM|
|Author: RBMunkin||Number: 155 of 290|
Does anyone here know the rules for taking money out of a Roth IRA? Articles in the Fool retirement section says:
Choose a Roth IRA if you can do without the tax break right now. It's a more flexible instrument, because:
1. It allows you to withdraw your contributions at any time, penalty- and tax-free.
2. You do not have to take mandatory distributions at age 70 1/2.
Unless an exception applies, most distributions from a Roth IRA before the owner reaches age 59 1/2 will be subject to an "early withdrawal penalty" of 10% on the amount of the distribution.
So what's this discrepancie about? "Penalty- and tax free" vs. "penalty of 10%"?
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