No. of Recommendations: 0
I have now thoroughly confused myself so I hope a fellow Fool can clarify for me.....

I am thinking of openening a Roth IRA but I also plan on buying a house in 1 1/2 to 2 years. I most likely will need the $3000 I use to open an IRA as down payment money when I do buy but it is possible that I won't. I want to plan for a Foolish retirement and open my IRA now but I am afraid I will incur taxes and penalties if I try to withdraw my money for a new house downpayment before the 5 year time frame is up.

Now if I understand correctly what I just read I can withrdaw my contributions (not earnings, just contributions) from my Roth at any time, even before the 5 year time frame is up, penalty and tax free.

Is this so? What am I missing here? Any advice from more informed Fools would be most welcome.

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.