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(There is an exception - if you expect to withdraw from the Roth before age 59½. Then the Roth will charge income tax on the earnings while the taxable account will charge lower capital gains rates. But you don't sound like you expect to do this.)

And of course, there are exceptions that can mitigate taxes on the exception.....You are allowed to withdraw the contributions you made to your Roth at any time without penalty or tax. And there is the first time homebuyer's exception, being disabled, and SEPP (Substantially Equal Periodic Payments), etc. See IRS publication 590 for details: http://www.irs.gov/pub/irs-pdf/p590.pdf

AJ
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