UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75873  
Subject: Re: Penalties on Early Withdraw from a Roth Date: 6/19/2003 10:17 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
>>Are there penalties if I withdraw some of my money from a Roth earlier than a certain age?

Not on the principal you invest- you can take it out anytime, tax and penalty free (you will pay taxes/penalties on the earnings if you're under 59.5, however). You can also withdraw up to $10,000 for a first time home purchase tax and penalty free, but only if your Roth account has been open for five years. Yet another reason to open one today!

Personally I wouldn't worry about future home and car needs- the power of an investment growing tax free for (in your case) 50+ years is too great to ignore. Invest $3K/year from age 20 to 30, never invest another dime, and you'll be a millionaire when you're 60, if the investment grows at 10% per year. And if that money's in a Roth, you'll be able to withdraw & spend it tax free.

Nick
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Value Hounds

My Big Fat Greek Splat
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement