No. of Recommendations: 1
I am a college student who opened a Roth IRA last year (August 2000) which I funded with ernings from a summer job. Thinking that I would have another summer job this year I made a $2000 contribution for this year (2001) in January. But due to family circumstances I did not work this summer and so I have no earned income for 2001.

With the money I deposited for 2000 I bought some stock. The money I depositied for 2001 I left as intrest-earning cash since I couldn't come up with a good stock to buy.

What are the penalties for depositing money while having no earned income? Can I pay them with outside funds or must the penalties be paid from my Roth account?
I have heard that it is possible to withdraw contributed funds from a Roth (i.e. the principle). If I withdraw $2000 will I be okay? OR do I have to withdraw the intrest too?

Thanks--I appreciate your help.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.