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Jack writes:

I funded a Roth IRA for my daughter, matching her
earned income for last year. But then I heard that
contributions can be withdrawn tax free. Does this
mean that she can effectively drain the account and
and spend Spring Break in Cancun?

Without getting into too much detail you can withdraw funds from Roth IRAs without penalty and tax as follows:

Contributions: Five years after the first tax-year a contribution was made. (There are loophole provisions addressing this).

Earnings: Five years after the first tax-year a contribution was made and after the date you reach age 59 1/2.

Hope this helps.

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