Skip to main content
No. of Recommendations: 0
Vtaeger,

<<It's my understanding that for a contributory ROTH you
can withdraw contributions tax free and penalty free
at any time and for any reason.

This flexibility makes a ROTH more attractive for a 15
year old. If the money is needed for tuition in 3-7 years
or for a house in 10-15 years the contributions can be
used tax free, the earnings are still a nice jump start
to retirement. (After 3-7 years the contributions will still
be most of the value of the ROTH)>>

As to contributions, you're absolutely correct. And therein lies your fatal error. Contributions will not be counted as a distribution for the first home or education use exceptions. Those kinds of withdrawals will come from earnings exclusively when taken from a Roth. Thus, those two early withdrawals have zip to do with contribution withdrawals in this context.

Regards....Pixy
Print the post  

Announcements

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.