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Bottom line, I have two ROTH IRAs. I'm 25yo and married. I started my first ROTH IRA in college before I started working full time. When I was 22, my employer opened and began matching up to 5% of my salary in a new ROTH IRA, but they did not allow me to roll my old ROTH IRA into the new one. Since starting employment, I have only deposited into the matching account. Currently I have around $8500 in my old, non-matching ROTH and about $20,000 in the matching ROTH. My taxable income is $60,000 and I don't live in a state with income taxes. I think I have a few options, but I need help deciding what benefits the most.

1. Take the tax penalty of 10% and increased income taxes on the old ROTH and reinvest in individual stocks (currently have about $22k in individual stocks). The way that I understand it, I will automatically pay $850, then the remaining $7650 would be added to my income and taxed (at 12%, so another $900 or so). This option makes more sense to me because I will have the opportunity to see more growth in individual stocks than in mutual funds.

2. Leave the money in my non-matching ROTH until I leave my current employer (4 years from now), where I I can rollover my matching ROTH into my non-matching ROTH. My non-matching ROTH won't grow that much, but I also won't take the hit for early withdrawals.

3. Or what else would you do?? I lean towards option 1 because I don't mind taking risks this early in my life.

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