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Several years ago I set up a Roth IRA account on behalf of my (adult) son. In order to encourage saving, the deal I made was that I would contribute half and he would contribute half for the first 2 years, and I hoped this would lead to a regular habit of saving by him for retirement. Unfortunately, he has not kept up his end of the deal, and I am thinking of canceling the account. All the money was invested in the Vanguard 500 and is about 20% under water. I believe that taking the money out now, even though he is a long ways shy of the 59-1/2 year age normally required, would have no tax consequences for him or anyone else. Can someone confirm that?

Thanks very much.

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