Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: xraymd Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120802  
Subject: Re: early Roth distributions Date: 4/26/2005 12:18 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I have a need to consider the option of dipping into my Roth IRA for a business expense that wouldn't qualify as one of the allowable conditions for early withdrawal without a penalty. I remember reading somewhere that it is possible to take money out of a Roth temporarily in certain situations, provided the money was put back in within a certain time, and that the money didn't represent the actual contributions, etc. Was that information correct, and if so what are the conditions for doing this?

Greetings, 5000fingers, what Phil said. What you are thinking of doing is called a ROLLOVER and you are allowed to do it I think once a year (but Pub 590 should have the real scoop on it). You can take out the proceeds so long as you put every penny of them back within 60 days. I did this to put a downpayment on my house while waiting for the borrowed funds to become available and I scooted the money back into my Roth with well over a week to spare. Depending on where your Roth is usually held (mine was at a full service broker), there are even specific forms to indicate that you are withdrawing the funds as a rollover and that you are later putting them back as part of the rollover. If you can meet the requirements for doing this and won't get caught short, then it seems like a reasonable way of securing the needed funds. What I don't recall is whether you are allowed to take out any of the earnings or if what you temporarily take out can come only from your initial contributions, but Pub 590 should be more explicit about this.

xraymd
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

Disclaimer:
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.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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:
Tax Strategies

TMFPMarti-Feeling Good
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