Message Font: Serif | Sans-Serif
No. of Recommendations: 1

So, I took $10 [I think you mean 10k] from my wife's and mine ROTH acounts, put the money down on a rental property and started renting it out in 10/01...Upon filing my 2001 taxes I found no taxable situations from the withdrwal, just a taxable income from the rent and a nice offseting tax deduction for the interest on the loan and a sweet deprectiation deduction."

I believe Roths have to be open for a minimum of 5 tax years to avoid the 10% penalty. I think you owe 10% of the withdrawal. The earliest you could have opened up the account is 1998.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.