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Author: mmk357 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Roth IRA Contribution Withdrawl Date: 3/9/2000 2:11 PM
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Okay, say I have two Roth IRAs. I transfer some money from account A to establish account B and I do it in a different tax year from when I established A. Now at some later date I want to withdraw some money from account B. I can do this for whatever reason as long as I'm withdrawing original contributions and not earnings. But what do I consider to be the amount of original contribution? Is this criteria applied globally to all my IRA accounts or is the accounting done seperately for each account?

To make my question clearer let me give some numbers

say in 1998 account A looks like this
contribution 2000
earnings 500

In 1999 I take 1000 from A to establish B. I also contribute an additional 1000 to A that year.

So the question is does my situation now look this
Account A
contribution 2000 (2000 - 1000 + 1000)
earnings 500

Account B
contribution 1000
earnings 0

or does it look like this
Account A
contribution 3000
earnings 500

Account B
contribution 0
earnings 0

Because now in 2000 I need some money I want to take
it out of account B. Let's say it did really well in 1999 and I have 2000 in earnings in addition to the 1000 I opened the account with by moving my money from
account A. Can I take a maximum 0 (because I didn't contribute any new money to account B), 1000 (because I moved that amount of original contribution when I opened the account), or 3000 (because in total that's the amount I have contributed to ALL my accounts even though in account B if I were to remove 3000 I'm taking some earnings from that account) without penalty?

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