Message Font: Serif | Sans-Serif
No. of Recommendations: 0
You should not have to pay any tax on a Roth contribution, since you already paid taxes on that money. If you withdraw prior to 59 1/2, you must have held the Roth for 5 years, or you will pay tax on the earnings. Their are exceptions for college expenses and first time home buying, I believe. Taking a distribution and paying a 10% penalty means you'll have to do at least 11% on your stock investment just to get back to even. Look at rolling over your money into a Roth at a brokerage account (TD Ameritrade, Schwab, etc.). Then you can invest it in stocks and not pay an early withdrawal penalty.
Print the post  


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.