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BobCPA writes (in parT):

Without getting into too much detail you can withdraw funds from Roth IRAs without penalty and tax as follows:

Contributions: Five years after the first tax-year a contribution was made. (There are loophole provisions addressing this).

I reply:

This differs from my understanding. In order to withdraw conversions from a traditional IRA, not contributions, without penalty (taxes have already been paid), one must wait five "tax years" (the calculation can get a little funky). Check out the Taxes FAQ; I'm sure Roy treats this subject with his usual care and thoroughness. Contributions may be withdrawn without penalty at any time. In any event, if the daughter wants to drain the account, she can drain the account. She may end up paying some tax penalties, but that's all. --Bob
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